Most business owners can attest to the importance of sticking to their revenue goals. Indeed, optimizing revenue has never been as important as it is in today’s hectic economic climate, and should never take a back seat. There are a variety of ways that businesses fail to capitalize on their revenue, however, many of which easily become overlooked. The following are just 5 pitfalls to avoid when trying to maximize your revenue, all of which are more than worth taking into consideration.
1. Overspending on Marketing
Marketing is, of course, an extremely important aspect of business. Many business owners overspend on their marketing efforts, however, which can be extremely problematic. For best results stick to marketing efforts that you know will work (Internet marketing, for example), avoiding traditional techniques that are perhaps outdated.
2. Hiring Expensive Employees
Just because you think you’ve found the best employee that money can buy doesn’t mean you’re making the right decision by hiring them. Often times, seasoned employees that require large amounts of compensation are simply not worth spending the extra money. Instead, you might want to hire a recent college graduate, which will save you money without sacrificing quality of work.
3. Missing Opportunities to Capitalize
Depending upon what type of business you operate, there may be times when opportunities come up which your should try to capitalize on. Generating profit and revenue in such a situation can be difficult, but should not be skimmed-over. Working with a company such as Extraprise is a great way to maximize your ability to capitalize on certain scenarios, and can take your business to another level.
4. Overspending on Office Supplies
You’ve got to have decent office supplies at your disposal in order to get the most out of your business, but it can be tempting to overspend on such items. You can get a lot of mileage out of tracking your spending for one month and analyzing your findings to determine ways to save on your office supplies for the coming months.
5. Not Tracking Every Little Expense
Expense tracking can be difficult and time-consuming, but the difference it can make for your revenue can be astounding. Be sure to have a high-quality expense tracking system at your disposal, which can help you to determine whether or not there are ways that you can cut costs. The more you can cut costs, the better off you’ll be.
I think it would be better if you hire newbies that are smart.
Not all experienced workers are worth every penny you have.
Excellent article. So many forget how important existing clients are as they primarily focus on winning new business. Thank you for this reminder.
These are good factors to consider. Fundamental aspects of a business that can be improved and given more attention to. Most importantly, they are easily monitored and modified to suit your business needs. Thank you for sharing.
This is a brilliant article which carries some of the essential points. Overspending on the office supplies is indeed one of the factors which the companies should take care of. The office supplies must be linked with the needs of the organization. A constant tab on the opportunities worth capitalizing is another way. Thanks for sharing the post.
Tracking every little expense is most important because petty expenses like newspaper service can have a big impact on the budget.
I agree with Fatima! You need to be organized and handle the expenses correctly.