Here’s What to do When You’re Not Making a Profit

Here’s What to do When You’re Not Making a Profit

Keep calm and carry on building business.

By Marcia Smith

Every business will, at some point, experience a drop in profits. Don’t panic, here are some a few things you can do to address the problem.

Find the root cause

The first thing to do when you notice a drop in profits is to examine your numbers and identify the cause of the fall. It could be that a supplier is putting up prices, or a drop in sales, for example. It’s likely to be at least one major factor, so once you’ve identified this you can look at how to address it.

Reduce your overheads

Look at your major overheads, is there anything you can cut back on? For instance, could you move to a smaller office or downsize your company car? Or it could be as simple as reducing spending on areas such as printing.

Get a fresh perspective

Bringing in someone independent of the business, such as a non-executive director, to have a look at it from a fresh perspective could help you to identify ways to make your business more profitable.