Dropping Profits- How A Business Should React When Profits Drop

by- Tom Kubrak

You’re down on profits. Things aren’t looking so good. You ask yourself,

“What is going on and what am I going to do about it?”

It’s easy to start to freak out and start blaming other people.

In reality though. You need to remind yourself that you were the one that decided to start this business and you’re the one that needs to dig yourself out of it.

It falls on your shoulders as an owner. Always.

Your Team

People. People. People. It starts and ends with people. Do you have the right team? Check out  https://readyaction.blog/2018/08/04/the-right-team-your-business-will-prosper-if-you-have/ 

Maybe a team member has not been doing the things you want and has been negatively affecting a lot of things for the business. Yes the employee could be a bad listener or team member. Maybe they have a bad attitude, but maybe your just a bad teacher.

As an owner or manager you can’t expect all of your employees to just know everything when they walk through the door. Try creating a training program so they know the expectations and your process’ when they walk through the door. https://readyaction.blog/2018/08/11/training-program-your-business-will-prosper-if-you-have-a/ 

It’s up to you to explain to them thoroughly what they need to do.

If they screw up…

Give them a second chance for goodness sake. Everyone deserves a second chance and maybe you need to reevaluate a different approach because everyone learns differently.

Coming up with the Solution

  1. Idea Generation– get a white board or a piece of paper, bring your team together and brainstorm what is going on. Write it all down.
  2. Circle the things that stand out
  3. Go in depth about each one
  4. Draw up a specific plan to solve the problem
  5. Ask people on your team what they think about the plan
  6. Act

Acting on The Problem

Now it’s time to act. Pinpoint the problem and act quickly. Make sure you go over the plan though so you can get out of this negative time for your business a little quicker and not make it any more strenuous.

Accounting- Online Presence- Others

As you know, there’s many different problems that could be happening in your business. Mike Kappel goes a little more in depth in five more areas that could be affecting your profits, in his article https://www.forbes.com/sites/mikekappel/2017/05/03/5-causes-for-a-small-business-losing-money/#525aff85c3df-

Some specific points he highlights are

  1. Bad Accounting
  2. Non-existent Investing
  3. Non-existent Online Presence
  4. Check out his article
  5. Check out his article

Passion or Sell?

Walking into business’ now a days you can see the owner losing the passion they had when they first started the business. Find a way to get the passion back or sell your company. You’re doing yourself a disservice if you hold onto the business, continue to be miserable and keep on losing money.

“The successful man will profit from his mistakes and try again in a different way.” -Dale Carnegie

Visual by- Erik Renninger @ErikRenninger

By- Tom Kubrak

Email- Tomkubrak.writing@gmail.com

Follow @readyaction.blog on Instagram and Twitter for updates and more!

Email- readyactionblog@gmail.com to get your story featured on ReadyAction

IG & TWTR @tomkubrak

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s