5 Ways Your Business May be Leaking Money

As a small-business owner, your expenses and cash flow are a top priority. Sometimes, though, it may seem like you don’t know where all the money your business should be earning is going. Here are five ways your business may be leaking money.

1. Your technology is outdated
Some business owners feel safest when everything is recorded in old-fashioned paper and pen. However, refusing to keep your business current with the latest technology can be costing you money. Tracking your customer data, inventory and managing business operations on an online platform can help ensure you don’t miss a single detail. It also takes a fraction of the time, freeing you and your team to focus on growing the business. For example, you can use chatbots on your website to answer the most frequently asked questions and use software to track customer behavior and/or inventory.

2. You aren’t paying attention to customer feedback
In the digital age, customer service is paramount. One wrong move can spell disaster for a company when the allegedly wronged customer goes on an online rant. To avoid something like this happening to your company, take a good look at your customer service to ensure it’s perfect. You’ll also want to verify that any customer complaints are being dealt with as quickly and diplomatically as possible. 

3. You aren’t investing in training
A flourishing business is a live, growing thing. It’s important to keep your staff up to par and to ensure that every member of your team is up-to-date on the latest developments in your industry. Training also keeps your members committed to their jobs and doing them in the best way possible. 

4. Your marketing is inefficient  
Marketing is essential to any business, but it’s easy to spend more than you’re getting in return if you’re not tracking results. Many businesses fall into the trap of putting money into campaigns without measuring their effectiveness, leading to excessive waste of funds.

To fix this leak, focus on data-driven marketing. Track your campaigns, analyze results and be prepared to pivot when something isn’t working. Utilizing tools like Google Analytics, social media insights and CRM platforms can help you understand where to allocate marketing dollars for the best return.

5. Your media is unprofessional
A poorly designed website or emails filled with typos can be a big turnoff for prospects and clients. They may even think it’s a phishing attempt and report you, which would then hurt your overall deliverability. It’s crucial to present yourself as professionally as possible. Take a good look at your website, social media pages and all communications to ensure there are no typos or errors.