There are so many reasons why your small business might be losing out on money. Some of them are obvious, but others are not so much. If you want to make the right changes then you need to identify the root cause first.

Bad Accounting

If you want to have any chance of business success, you need to know your numbers. If you don’t then you will never know how much money you have coming in or even how much you have going out. Of course, if you are slow to log transactions then you probably won’t have a clear idea of how much money you have either. You may buy a lot of supplies without logging them or you may find that you think you have more money than you do. One way for you to get around this would be for you to hire an accountant. When you do, you will soon find that they can help you with just about anything you need.

Source: Pexels (CC0 License)

Combined Bank Accounts

It doesn’t matter how big or small your business might be because you should never use a single bank account for your personal and business finances. When you share a bank account with your business, you may find that money becomes muddled and that you also have no idea how much you have to spend.

Late Paying Customers

Customers who pay late can cause real problems. You may find that they end up running your business into debt and that you are also not able to keep track of everything. This is the last thing that you need, but one way for you to get around it would be for you to invest in a small business collection agency. They can then make sure that you get all of the money you need.

Poorly Priced Products

It’s so important that you price your products properly. If you are constantly selling your products for too little or even too much, then your business will be losing out on money. It can be difficult to create prices for your products, but that doesn’t mean that it is impossible. For example, you can conduct a market analysis, or you can even study your competition to find out what they are charging for their products. Talking to potential customers can also help, so you can find out if changes need to be made. If you want to do this, then send out an anonymous survey via email or post.

Not Investing

Your business won’t be able to grow if you don’t invest any money into it. Your operation will eventually stagnate, and you may even find that your offerings become stale. One way for you to get around this would be for you to expand so that you can offer more to your existing customers. If you feel as though you don’t have the money to expand then consider taking out a loan. This will help you to really take things to that next level and it will also help you to make more money every single month.