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4 Hidden Ways Your Business Is Draining Resources

By: Brittany Engelmann-- 2016-08-26 7:00 am --

Does it ever seem like, no matter what you do, you just can’t seem to gain the profit margin you’d like? You’ve tried raising prices, only to lose business, so you seek to lower prices, only to lose profits. It’s an endless cycle, and successfully balancing a profit margin is a task that few have wrangled successfully. However, there are a lot of unexpected ways that businesses drain their resources without even realizing it, and this subsequently drives the profit margin downward. Here are some of the hidden holes in businesses that could result in your resources leaking away.

  1. You’re Disorganized

According to a 2010 survey by Brother International, businesses lose an average of a week’s time every year through employees attempting to track down supplies or information. Meticulous organization is critical to ensuring your employees waste as little time as possible. Create storewide policies regarding the storage of physical items, requiring employees to check items in and out if necessary, to avoid lost or misplaced items. For informational access, consider opting into cloud storage. It provides a convenient, online storage center for all business information, so employees will never have to track down the info they need.

  1. Your Team Is Poorly Trained

One of the key ways businesses drain resources is by sinking money into a poorly trained payroll. Payroll is one of your biggest expenses, so you need to ensure it’s creating healthy returns. Training is critical in providing your team with the knowledge and tools they need to work at peak efficiency. While training may seem like a steep initial investment, it’s one that pays off tenfold down the road.

  1. You’re Not Factoring Soft Costs into Your ROI

Soft costs refer to all time or resources devoted to aspects of business that support business growth without being directly linked to business. For instance, consider all of the money you spend on networking events or the time you sink in to attending these events. These costs and time-investments are often not factored into the business ROI, despite the fact that they weigh heavily on your schedule. 

  1. You Aren’t Partnering with the Right Supplier

Finding the right supplier is like finding a good pair of shoes. Just because they feel like they fit at first, doesn’t mean they’ll remain comfortable over time. If your shoes don’t fit perfectly, soon you’ll develop blisters, your socks will wear thin, and your feet will ache, indicating it’s time for a different pair. Similar to your supplier, it may seem like a great fit at the beginning, but as time wears on you find they aren’t meeting all of your needs as a business. Finding the right wholesale supplier is crucial, as they’re partly responsible for ensuring your orders arrive on time and in excellent condition, both of which will help to conserve business resources.

There are a lot of subtle ways that businesses lose money without even noticing, which can make for a frustrating uphill battle against your profit margins and ROI. By finding the right wholesale supplier, you’re taking a positive step in the direction of success, ensuring you can increase the efficiency and cost-effectiveness of your business. Visit our website today to see if DollarDays is the right wholesale supplier for your small business.