If you’re noticing that your business is pretty much hemorrhaging money, then you need to act fast. There are ways you can stop this from happening, but you haven’t got a moment to lose. Maybe you haven’t even realised how serious this bleed is. Read through this post and get an idea of how your business could be hemorrhaging money, and what you can do to stop it.
Your Customers Don’t Pay Their Invoices On Time
One of the most annoying things about being a business owner is not having invoices paid on time. However, this can be due to a number of reasons. They may not pay on time as your reminder system isn’t efficient enough. You need to remind them! You may also offer them a small discount for paying early, to give them an even bigger incentive to pay what they owe. It’ll be worth it if it helps your cash flow.
You may also consider putting penalties in place for invoices not paid on time, but this isn’t always the best move. Sometimes, simply contacting the customer and asking if they are having trouble and how you can help can get things moving. Alternatively, there are companies out there who will pay you and then take over the debt.
Let Employees Who Aren’t Pulling Their Weight Go
As a general rule, if an employee isn’t performing or pulling their weight 90 days after you’ve hired them, you should let them go. It might sound harsh, but you hired them for a reason. If they are not doing the job as agreed, it’s in your best interests to let them go. It will be hard, sure, but it’s for the best. You may want to give them another chance by telling them what they need to improve on, and if that still doesn’t work, it’s time to help them move on. Make sure you go about this the right way so you don’t get into trouble.
Start Tracking Your Expenses
If your expenses are all over the place and you’re not tracking them, you’re going to need to look into easy to get personal loans instead – and it could be a slippy slope from there if you still haven’t got a handle on your finances. Make sure you start tracking your expenses right away and get a better idea of how money is moving in your business.
Too Much Outsourcing
Outsourcing can be great to help your business free up time and get things done by people who are experts in them. However, too much outsourcing can be bad for your business. For the money you’re spending on a contractor or freelancer, you or a member of your team train in whatever it is. Of course you need to make your own decision as to whether this is a good idea or not.
Reassess Your Marketing Efforts
Are your marketing efforts truly paying off, or are they falling flat? If you’re not monitoring them properly, you could be losing money on things that aren’t even working!