Although small businesses may be the backbone of the American economy, not every small business is profitable. From keeping customers happy to retaining employees and paying vendors on time, it takes a lot to keep the doors open. Business owners that pay attention to certain operational details are more likely to be successful.
Here are five things that can cause a business to lose money:
- Disorganization. Modern commerce moves quickly and businesses need to be agile and flexible to meet fluid consumer demands. If a business isn’t organized, it won't be able to move at the pace to stay competitive. It’s important to have a business and operational strategy in place to meet current and future market needs.
- Outdated technology. Using outdated technology can hinder a business’ ability to scale and meet customer demand. For example, an out-of-date point of sale (POS) system can result in lost sales if it doesn’t enable acceptance of the payment types today’s consumers expect like eWallets. Many of the latest POS systems come equipped with software and features that allows business to grow as demand increases.
- Not backing up or securing systems. It's important to backup all systems to avoid inadvertent deletion during an upgrade or update. Losing any critical business information can be detrimental to a business. It’s just as important to secure customer information. If sensitive information is lost or exposed, a business could be liable for card industry fines and additional financial damages.
- Employee training and turnover. Employee turnover is costly— and not just in terms of money. The cost of turnover also includes lost productivity, time spent training and supervising new hires, and maintaining quality customer service during a transition. An employee training program can be effective at reducing turnover. It may cost money up front, but consider it an investment in the business.
- Poor customer service: Studies show that dissatisfied customers are more likely to tell people about their negative experiences. This ripple-effect from a poor customer service experience can severely damage a business’ bottom line, in terms of lost sales. It's critical for small businesses to focus on serving customer needs. Consider investing in a POS system that includes features like loyalty programs to support a positive customer experience.
Fortunately, there are many simple and affordable payment technologies available to help solve these issues that can lead to lost revenue. Contact Worldpay for more information about how our payment processing services could increase efficiencies and save you money.