It can be pretty funny to watch blooper fail shows like the one above, where some poor so and so does not land a bike jump or falls off his skateboard. However, when it comes to something as valuable as your business, fails don’t seem as amusing! In fact, they could be ruining your profits, read on to find out why.
Scrimp on tools
Business without budgets don’t exist, and that means everyone has an amount of investment capital that they need not go over when they are setting up their company or developing a new product.
However, scrimping on the right tools for the job just to save a few dollars can be disastrous! The reason for this is that if you haven’t got access to tools that offer the right level of specialization for your field like the software Altium makes for printed circuit board design, it will affect the quality of your product, your sales will dip, and complaints will rise. This, of course, can have a devastating effect on your profit margin, and cost a fortune to rectify both regarding the product and in terms of your business reputation.
Fail to access expertise
In a similar vein if there are specialized tasks that you do not have the employees for, then it can be invaluable value to outsource them. Outsourcing is so valuable because you get all the benefits of someone with experience that is up to date, without having to find the funds for a full-time wage.
Many companies forget this, and while it is possible for some employees to learn certain tasks if they have the time and training, this is often a very unreliable and un-economically sound way of doing things. Something that can easily end up backfiring and being a false economy, therefore eating into your company’s profits.
Picking the wrong payment platform
Next, remember that the payment platform that you choose can have a massive impact on your profit levels, as well as your business’s cash flow. What too many businesses ignore is the fact that while there are many different options out there, most customers are comfortable with a particular brand that they have already signed up to and created an account with.
What this means is that if you don’t pick such brands for your payment platform, you will need to offer an additional incentive to motivate customers to go through the hassle of signing up and using them.
Consider payment platform options carefully to maximize profits.
This could include offering a percentage off of their purchase or additional reward points. Otherwise, you risk potentially losing sales because of the inconvenience of using an alternative payment platform. Something that can eat into your profits if not dealt with properly.
Lastly, poor productivity is an issue that can consume profits before they are even made. After all, the basic equation that most companies work on is that time is money. What this means is that if employees are wasting time, it costs you money!