If you are a small business owner, you have probably heard that it is not uncommon for your business to operate at a loss. This is not ideal, however, and you probably feel like you can do better. But how? Follow these tips to stop your small business from hemorrhaging money.
Leverage Social Media
Image from Flickr by jillianj3
If it seems that more business is conducted online these days than off, that’s probably because it is. When someone is looking for a product or looking to hire a service, they often turn to the internet. So, if your small business doesn’t have an online and social media presence, you are missing out.
Building a social media presence, however, is about more than merely creating a page. You have to also post regularly and engage meaningfully with your followers and customers. Running a small business has always been about customer relationships, but now many of those relationships have moved online, so that is where you need to be.
Use Traditional Advertising
While social media will help you to get the word out about your product or service, it can’t do everything. Paid advertising — whether it is online, in your local newspaper, or elsewhere — is still a vital way to attract customers to your business. In fact, it’s one of the most powerful ways that you can spend money on your company. Business owners who do not invest in their company’s advertising will find that they are not making any money in the long run.
Eliminate Accounting Errors
You might be surprised to learn that accounting errors are one of the biggest sources of loss for a small business. While it may be impossible and unrealistic to hire an accountant for your small business, it is not impossible to eliminate the accounting errors that new business owners typically make.
Invest in the Quickbooks Enterprise Suite to make keeping track of your business’ financing easy and relatively painless. Quickbooks helps you track income and expenses, inventory, customer information, and a number of other things, making its contribution to your workflow invaluable.
Price Products Correctly
One huge mistake that many new business owners make is with pricing. Incorrectly priced products and services can cost your small business greatly. Do the research to determine the fair market value for the product you are offering.
If your prices are too low, you run the risk of customers thinking that you’re offering an inferior product. You also won’t make what you should on those customers who do decide to take a chance on you. If you price your products too high, you will lose business to your competitors with more competitive pricing. This is why taking time to do pricing right is crucial, especially in the early stages of your business.
Finally, businesses that don’t invest in growth eventually die. Once your business begins making money, investing some of that back into the growth and development of the company is vital. Spend your dollars right, and you will be rewarded in the long run.
Running a small business can be challenging. However, if you do your research and use the right tools, your business can thrive.