When you offer a service, you are usually brought in to solve a problem. If a drain is blocked, you clear the blockage. If a room needs a new coat of paint, you paint it. If your business is leaking profits, then it helps to know these six common profit leaks you should plug in your business.
1) Upgrade your technology
A lot of businesses may feel that paper and pen work best for stock taking, orders etc. However, there are now many forms of software available that can make your business more efficient. This can include chasing up lost customers, automatically sending out invoices, and using methods such as chatbots to stop you from wasting time answering the same questions over and over.
2) Check customer feedback
It used to be said that if you gave bad customer service, then your customer would tell two friends. Now with social media, that number could rise very quickly. Reacting promptly to customer feedback and dealing with issues can prevent poor word of mouth and improve customer retention.
3) Invest in training
If you went to a doctor, you would want to rest assured they had the appropriate medical training. Investing in training should not be treated as a luxury, as it means your team can be prepared for any issues and can prevent problems later down the line. Furthermore, it is a great addition to any marketing promotions for your business and will give your customers peace of mind.
When training your team, remember to focus on key elements (for example, look at areas where you can upsell).
4) Invest in marketing
A badly designed website or typo-filled flyers will put off any potential customers. It sends out the message that you are willing to cut corners. Think about who your customers are and the message you want to send out.
5) Know your customers
There is the risk that businesses assume who their customers are and base their promotions on those assumptions. Customer feedback can allow you to get a better idea of who your customers are and what they want from your business.
Equally, don’t be afraid to talk to your team- find out what feedback they are getting when interacting with customers and see how you can adjust what you are offering to suit their needs. It is also worth reaching out to older customers and finding out why they decided to go elsewhere.
6) Keep an eye on stock
If you are in a business that sells parts or needs parts, then you need to keep an eye on stock control (this can equally apply to business expenses). It is a balancing act- too much stock and you put a squeeze on your cash flow. Not enough and you could end up missing out on sales or jobs. Careful stock monitoring will make it easier to achieve a balance.
We can help
These are just a few examples of common profit leaks that your business needs to plug. For more information on how we can help please click on the link below and we will be happy to discuss what would be best suited to your business.