Running a business by yourself is a difficult job. You have to juggle between having excellent customer services, managing your company finances, and trying to keep your employees happy. However, on top of all of these, there’s always that terrifying thought of losing money. So how do you not lose money in your business?
Don’t Be Afraid to Explore
Your marketing strategy is one of the essential factors that can define the success or failure of a product or business. Doing it right can make your business grow, whereas failing to have a proper marketing strategy can be your downfall. Hence, marketing is everything.
Take fidget spinners and the John Carter movie, for example. Fidget spinners are just contraptions that keep your hands busy and show no proven benefit in your life and health whatsoever. But be that as it may, it had a high public demand in 2014; at least 19 million spinners were sold. Its secret? Good marketing.
Meanwhile, we have John Carter. With its production budget of $250 million, it only took home a little above $73 million in domestic sales. These numbers can give you a hint that the movie was probably dull. However, if you watch it, it’s a pretty good movie. So why was it a flop? Poor marketing.
With that in mind, you should explore and change. Find where your customers are lurking, explore ways of making your business more reachable to them, and come up with a strategy on how to turn them into sales. Meanwhile, if your current “game plan” isn’t working, don’t risk losing more money and change your strategy immediately.
Improve Your Accounting
There’s no denying that one of the top reasons anyone would put up their own business is to make money. Because let’s face it, being an employee can only bring you halfway through financial success. However, being good with money is an essential trait that every business owner must have.
According to Forbes.com, bad accounting is one of five reasons why small businesses are losing money. If you don’t track your transactions (costs, profit, etc.), you will not see how your business is doing, and progress will slow down.
Therefore, to prevent your business from losing money, you must always know where every penny is going. Having a professional accountant can help you achieve this, especially if you don’t have the time to get it done. Moreover, they can also help you determine how to grow your business by analyzing cash flow patterns, financing, pricing, and inventory management.
Accept the Fact that You’re Not Always Right
This can be a hard pill to swallow. However, what could make you lose money can also be because of your attitude towards mistakes and failures. Even Warren Buffett, one of the most successful businessmen of all time, has had to deal with errors and isn’t afraid to admit it.
According to CNBC, Buffett once invested on a failing textile company called Berkshire Hathaway and ended up losing an estimate of $200 billion in the process. Thirteen years later, he then invested in another textile company called Waumbec Mills and ended up regretting his decision again.
However, despite these failures, he rose above his mistakes and now has Berkshire Hathaway as one of his primary sources of wealth. This goes to show that Buffett never failed to admit his mistakes, learn from it, and then come up with a new business strategy.
So what can you do to be like him, business-wise? The first step to handle failures like a champ is to accept the fact that you’re not always right. This can be difficult to admit, especially when you’ve already put in a lot of time and money on a business decision. However, one thing’s for sure: pride can hold you back from reaching the maximum potential of your business.
It’s Not Always About the Money
In the end, you’ve probably already realized that not to lose money in your business — ironically — isn’t always about the money. While being mindful of your finances is still essential, having the right attitude can help bring your business on top of its game.