Stop Losing Money with Strategies to Plug Money Leaks

Posted by Karen Erdelac on Feb 10, 2015

stop losing moneyThe economic recovery continues and the consuming base remains on a rocky road. Despite tumbling oil prices, consumers still aren't pulling out their wallets to spend their hard earned money. According to the latest report from the Department of Commerce, consumer spending in December saw its biggest decline since 2009.

Instead of spending money on goods and services, consumers are paying down their debt, putting money aside for a rainy day and investing funds as part of their retirement planning. This also means that businesses are suffering from a lack of sales.

Moving forward, companies will have to discover how they're losing business; devise new marketing schemes to attract customers and take another look at their business models. If businesses refrain from performing any of these measures then those money leaks can quickly turn into floods.

There’s still time; stop losing money and employ these strategies to prevent money leaks.

Remember Those Forgotten Customers

The customer entered your store or visited your website and purchased your products. If you think that's all you have to do then here's a bit of advice: you should contact buyers after the purchase. To ensure customer loyalty, you have to follow-up by email, remember them when they return to the store and provide them with information on when to check for the best deals. It costs much less to keep a customer than it does to gain new ones.

Accounting Mishaps

We make mistakes and we're only human; that's why pencils have erasers. But simple mistakes can be costly. Even small things like forgetting to carry the one, tallying up the week's sales incorrectly or miscounting the amount of supplies could bleed your company's finances immensely. It's imperative to consistently look over your spreadsheets and numbers for precision. Helpful solutions can be outsourcing the accounting processes or hiring an in-house expert.

A Slow Response to Customer Inquiries

Customers will be very much dissatisfied if they inquire by email or telephone and they either don't receive a response or a reply takes too long. Keeping up with clients' questions or concerns is imperative to the long-term viability of a business because it enhances the customer service experience. In addition, customer inquiries can help you make determinations about the products and services you offer or those you might plan to add. Here are a few tips to consider incorporating immediately:

  • An automatic response through email that promises to reply within 24 hours.
  • An answering machine that notifies them that you're appreciative of their contact.
  • A response on social media within 24 hours on Facebook or Twitter (if applicable).

Social Media Marketing & Engagement

If your brand has yet to establish a presence on social media then you're certainly losing out on a considerable amount of business. In today's corporate environment, social media branding is crucial to garner business and create a dependable clientele in the long run.

Regular social media engagement is key. Answering questions, responding to customer complaints and sharing industry-related information is part of the engagement process. Evening hours are a good time to visit social networks, since this is when most consumers in your time zone will be online. Connecting with people in a positive way helps promote a good reputation and strong brand recognition. The good news is, this is another task that can be outsourced.

Employee Theft

Employers detest the thought of an employee stealing merchandise, but it does happen from time to time. If this does occur then it definitely hurts overall profits and revenues. The security of your business is an important investment and security cameras can be extremely helpful tools in these and other matters. Once you notice missing products or cash then it's time to look at the security footage. If there is evidence then you have a few options:

  • Report this activity to the authorities.
  • Request the employee pay it back.
  • Dismiss the employee immediately.

Disorganization in the Front and Back

Let's face it: business can get hectic at times. Business owners have to meet payroll, pay bills, have sufficient supplies and keep customers happy. If there is a limited degree of disorganization in the front or back then it can contribute to the money leaks your company is experiencing. One helpful strategy is to develop processes and follow best practices for essential tasks. Modern software programs can help keep things on track.

Performing Tasks Not in Your Expertise

Micromanaging is one of the biggest wastes of money a business owner can do. An entrepreneur hired employees with sought out skillsets for a reason, and if the proprietor is carrying out a subordinate's employment duties then they're simply tossing money out the window.

Or, the owner is completing tasks that aren't even in their line of expertise. This type of thing can diminish the quality of the work and reduce customer satisfaction. Let the cashier check out a customer and allow an accountant to add up the sales.

High Demand, Low Supply

Out of nowhere, you've hit the big time and the company has an influx of customer requests and sales. Unfortunately, your supply is too low to meet the demands, and thus your business is missing out on serious opportunities. Whether or not it's a mishap on your part or there was just a heavy demand for a certain product from the consuming base, your company has to remedy the problem quickly.

From CRM to social media, the average business may need to look into a merchant cash advance to cover funding to plug those profit leaks. Small business funding is still relatively tight, even several years following the Great Recession, so this type of alternative financing could be the solution.

Topics: Growing Your Business