Business owners must do a tune up on their business weekly and monthly to stay in good shape. They can do this by decreasing expenses, terminating bad employees, decreasing customer’s fraud, increasing marketing, changing products, and cutting out low sales products. Business owners must evaluate their business daily and by staying on top of the game; their business will be more competitive.
What expenses need to be decreased? Business can cut down on their office supplies expenses by going to a better wholesaler for business supplies. Some business just goes to the local store and buys what they need but the local store is costly, they need to find a wholesaler. They should cut down the number of employees if they’re not needed. I noticed that some business have too many employees just standing around with not much to do but create more problems. You can combine their duty to another employee and cut some of them. A business can save more money if they switch to a better wholesaler because some wholesaler offer better price than others. If you save five cents on an item and if you multiply that by a million items over the years, you would be saving a lot of money.
If you have a bad employee, he or she can increase your expenses and decrease your sales and chase your customers away. She or he can create numerous other misconducts. It is a wise move to terminate bad employees. There is no reason to keep them around. Employees steal from you and they abuse their co-worker. Most employees will be bad if they have the chance to. I have co-workers that inflated accounting numbers, and abusing their co-worker. I have seen managers engaging in infidelity at work. I have seen employees that steal money off of the register when they were trusted to count the money.
Customer’s fraud can decrease your profit. Customers do cheat whenever they can. I have witnessed this at my workplace. They’ll fraud in every single way that they can. Your best bet is to identify them and control them. Sometimes your employees bring in people to cheat you off. Customers can return items they used already; they can destroy the item and say that they bought it that way. Customers can use other people’s credit card. There are many ways they can fraud you and you have to put a stop to that.
Increasing your marketing can bring in more sales. Some business goes out of business because they don’t advertise it enough. If no one knows about you, how can they buy from you? Good business owner know this fact very well. The more you advertise the more they buy.
Business need to change their products if the current one isn’t working. I walk into Sears years after years and they carry some of the same product over and over again that people don’t really buy. Some of the clothing that they carry is very outdated and tacky; I don’t know who would buy it. People likes to buy trendy and quality clothing which I think Sears doesn’t carry.
Business need to cut down low sales items and order other products. Sometimes I see some business with the same products years after years that doesn’t sell. If your business is not doing good it’s because your product is not in demand, don’t wait until you go bankrupt change it or close it down. There is one business next to my house that sells brand names clothing for less but they have only 5-10 customers per day and some days no customers. He made a mistake opening his business next to a thrift store that has tons of customers. How is he going to compete against that store? He didn’t close down his store for like a year and he finally close it down. I think it’s too late because his expenses exceed his profit. He didn’t make any money. I never see anyone in his store. This business owner is a very bad example of business owner. He doesn’t know what he is doing.
I have seen some bookstores doing very bad business. They rarely ever have any customers and their business is located on a very high traffic area with high rent. Selling ordinary books is not a very profitable business unless you’re like Barnes and Nobles or you sell college text book. People can read almost anything for free online nowadays. They can walk into Barnes and Nobles and read almost anything for free. Some businesses are not in demand and the owner need to know what is not in demand.
A good business owner knows all the general topics to keep his business competitive.
