Whether your business is primarily run online or you’re a more traditional brick and mortar operation, there is no shortage in ways that you can lose money. With some moderate exceptions most companies are in the business of making money. Even those that are dubbed NGOs or non-profit organizations still strive to earn income somehow because operating is never a free thing – profit may not be their focus but remuneration still has to be considered. Should you be running your business any differently? There is no shame in being desirous of profit, but there is in poor management and shoddy execution that can cost the company its livelihood. There are a plethora of pitfalls and sharp bends waiting to thwart your every business move and if you want to have any hope of success and longevity, it would be in your best interest to do whatever is necessary to prevent losses before they occur. As previously stated, it does not matter if your business is a virtual one depending on the strength of the internet or a traditional one run from brick and mortar space, if you are going to join the ranks of the successful, it is incumbent upon you to sidestep most if not all of the pitfalls that await you. Our tips while few in number are keys by which you can unlock the secrets to preventing losses today. One of the formative overriding rules of loss prevention is to strive to keep things as simple as possible. When we try to create preventative but complicated infrastructure to prevent loss, we often end up doing the exact opposite. Learn your market, learn your function and forge ahead, smartly:
1. Inventory control software
Nothing can spell quick and devastating losses like mismanaged inventory. Your inventory is where your potential profit lies and it is important that you not only protect it, but manage it wisely. While traditionally there would be a person or department charged with this management, we can lean on advances in technology to negate most if not all human error that has been traditionally involved. When choosing the software you want to implement, make sure that not only is it simple but that it gives you value for money – you don’t just want something to count. You want a program or suite of tools that can intelligently predict leave patterns and stock age thus helping you and your sales department function at a more productive level.
2. Social media overuse
Don’t read into this suggestion as an edict against the use of social media as a marketing tool but understand that everything in moderation is key. The strength and visibility of social media will do wonders for customer retention, new customer acquisition and customer relationship management. It is however one of the quickest ways to lose money when mishandled. Don’t flood or spam or phish for customers because as quickly as a good word can spread, a bad word can spread even more rapidly.