Top Five Reasons Profits Take a Dive

Business BenchmarkingAt Bizbench, we are constantly meeting with clients to provide the knowledge and insight they need to grow their businesses, build out their clientele, and see some much needed return on investment. Oftentimes, struggling business owners will ask us what specifically they are lacking. As with any other undertaking, it takes a combination of time, patience, and trial and error to find the formula that works best for you. While you work on fine tuning your business strategy, there are five red flags you can look out for to make sure you are on the right track. Read on to learn more!

  1. Not marketing correctly – If you are making an effort to host different themed events and creating seasonal promos, you’d expect to see some return on the time and effort you put in. But, if you’re not getting the word out about your business, then the promotions, discounts and activities you host will go unnoticed. Consider reading up on marketing techniques or hiring a specialist to bring new customers and retain the ones you already have.
  1. Poor social media presence – Whether we like it or not, we live in an age that is thoroughly saturated with social media. If you aren’t updating your company’s Twitter page, engaging with customers on Yelp, or posting on your Facebook and Instagram pages, you might as well be invisible. In order to stay relevant and accessible, you have to maintain a decent presence on the web.
  1. Lack of analysis – Sometimes it takes a fresh set of eyes to put everything into perspective. For business owners who are too attached to their company, it can be nearly impossible to take a step back and see the bigger picture. By bringing in one of our highly trained financial analysts, you will get an expert’s perspective on the strengths and weaknesses of your business operations. This way, you can learn how you measure up to the competition.
  1. You don’t know how to price – If you are breaking into a sweat each month trying to figure out why your business isn’t profiting, it is possible that you are pricing your products and services too low or too high. By figuring out how much you pay to create items and provide services, along with the cost of overhead expenses, you can get a better sense of how much to charge going forward.
  1. No customer feedback – You may think you know what your clientele looks like just from taking a passing glance at the people who set foot in your store – but until you do some dedicated research, you won’t really know who your target demographic is, what they want more of, what they can do without, or how they feel about your business in general. You can try interacting with your customers and sending out surveys to get an initial peek into the insights and tastes of your buyers.

If you would like to learn more about building out your business, we would love to hear from you. Give us a call or email us today to find out how BizBench can take your company to new heights.

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