For us business owners, running a business can sometimes feel like running the world, considering the weight of responsibility on our shoulders. With this in mind, it’s only natural that mistakes are made. Sometimes our hunger is the very root of our failure, as a large proportion of blunders are the result of one focusing all their attention on making money and little attention on ensuring we do not lose any. This results in our businesses losing capital due to simple reasons. Here are the simple ways our businesses could be losing money.
High Marketing and Advertising Spending
These days high marketing and advertising spending costs are key reasons behind our businesses losing money. It is simply a case of business owners being so keen on making money fast that they spend a lot of capital on promotion.
However, we are now in the age of the internet and social media and as such, we no longer need to spend bundles on advertising and marketing costs to get word around on our products or services. Instead, we simply need to use platforms such as Facebook, Twitter, YouTube and a range of other networks in which you could potentially reach an audience of over a billion.
Utilising the internet should be most businesses biggest marketing strategy, for it is an extremely cheap and effective marketing strategy.
Businesspeople should in theory be a rather savvy bunch. Instead however, thousands of us are missing out on thousands of pounds each year due to not claiming back what is owed to them by the HM Revenue & Customs in the form of tax refunds.
The circumstances by which some of us may be owed money by the tax authorities are numerous. For example those working in construction and needing to travel to temporary sites via public transport or their own vehicle could be owed around £2500! Furthermore, those who buy, lease or improve a commercial property should have some of their expenditure offset by the HMRC and will therefore also be owed money.
Tax refunds are generally afforded in situations when the tax liability is less than the taxes paid. RIFT tax refunds are an example of a specialist tax refund team online that can help discern whether or not you’re owed anything in fact.
High Shipping Rates for Online Customers
This one is specifically for those businesspeople who sell products online. Stating the obvious, online customers prefer buying products from sites that offer low or free shipping. You should thus aim to offer this to your own online customers at all costs.
Negotiate with your vendors to see if they can eliminate or at best reduce freight costs for you. It is often the case that purchasing above a specific threshold will make this the case. By doing this you’ll be able to offer lower shipping rates to your customers, saving money in the long run. However, you must ensure that you can sell a massive inventory first.