No one goes into business with the desire to heap up losses but in the long run, the reality that hits one could just appear unexplainable sometimes. However, there are certain telling points that are often overlooked along the line, and this could eventually deal one’s business a huge blow if left unchecked.
So, what are the signs that intimate that your business is taking a plunge – losing money – rather than making more and more profit?
The first sign we would like to hinge on is the incidence of a high employee turnover rate; this makes you spend more on hiring and training new personnel which may not be very good for the development of the company as time progresses. This problem could be down to the fact that you did not hire the right persons for the job [in the first place] or due to the fact that the employees are not having good welfare packages. So, to fix this, you will have to strive to put the right people in the right places – hiring competent individuals is a luxury you cannot afford to throw away. Also, you should consider motivating disgruntled employees – maybe by giving incentives; this could go a long way in boosting productivity rate.
Another sign your business is losing money can arise from the fact that the amount of cash spent on different quarters or sectors of your business is yielding little or no profit. In this wise, you will have to review the processes to see which one is not really working and then make a move to save cost.
A customer base that has ceased from expanding for some months should also give you a cause for concern. In this case [since you are not in the business for yourself] you do not even need the buy sell arrows indicator to tell you there is work to be done before you do what is needful. In addressing this matter, you will have to do away with outdated marketing campaigns and engage the power of digital marketing to a greater extent.