4 Areas Where Your Business is Losing Money

In my 18 years of consulting I have heard it all. Everything from competition to managed care as reasons why it's hard to create the business of your dreams. New customers are needed to keep any business going but it is how you and your staff manage these customers that determines your success in business.

In every business that I have gone into over the years, what amazes me most is the amount of lost income from poor handling of the major income generating areas of any business. I will cover four of them.

The actual amount of lost income can be calculated. I will describe where you are very likely losing large amounts of money and why. These areas if handled will help you lose less money in your business or in other words, make more money.

Where am I losing money in my business?

Business owners are always looking for ways to increase revenue but we seldom address the areas where buckets of money may be slipping from your fingers. It is common to look at the cost of handling a situation in your office, but little attention is paid to the fact that not handling a weak area of your business is costing you way more than what it may cost to solve the problem.

You need to be able to measure the top basic areas and the way to do it is with statistics. How can you evaluate how close you are getting toward handling any weak area of your business or enhance an area already doing well if you are not using statistics? Operate off of statistics.

Most business owners commonly fail to look at what they are currently losing from weak business management and poor training of staff. Here are four of the key areas of lost income within the organization.

1. You can lose money with poor reception control.

Ideally, with proper reception control at the front desk, on the phone and certain procedural actions in place you can achieve a higher percentage of closed customers. To the degree that the control at the front desk is missing or the customers are dictating when they will come in or not, you will be losing money. A good receptionist is key to directing the incoming traffic, whether via phone or in person to the proper staff member quickly and with good control. This is quite honestly an easy fix and can improve your bottom line quite markedly.

2. You can lose money from having a poor collections ratio.

Depending on your business, once you make the adjustment in your production for other plans such as managed care, etc. you should be collecting 95% of the remainder. Ideally, when calculating your true collection ratio you would use the last six weeks of collections divided by the previous six weeks of production. There are actually eight areas, if fully handled, that will put your collections ratio in a whole new range.

3. You can lose money from having an untrained or poorly trained staff.

Take your average weekly collections divided by the number of Full Time Equivalents (FTE). Don't forget to include the owner's hours and if he or she works 60 hours that is a 1.5 FTE. Every staff member has value to the organization, but some are clearly more valuable than others. When you have a staff member that knows what to do, is very efficient in his or her ability to get the job done and somehow motivates others, you know they are worth their weight in gold. What is sometimes difficult to understand is that getting employees to actually do their job with a high degree of productivity IS attainable. Every time you hire someone within your organization you should have a certainty as to how much income per week they should bring to the table through their efforts. The average should be somewhere around $3,500 a week for each FTE.

4. You can lose money from lack of effective marketing.

Effective marketing is a big area where businesses fail. They usually plan their promotion like they plan their meals ? one at a time. It pays to have a marketing plan and be able to correctly determine the ROI (Return On Investment) from marketing actions. Most businesses send out one promotion piece and then tally the responses, not the amount of money produced from those responses. This gives a false picture. Then business owners think that their marketing "isn't working" so they quit - just as quickly as they started. Likewise, when they quit, they do so not realizing that repeat mailings are the key to generating more responses and more income. Executives commonly do not "put themselves in their prospects/customers shoes" and look at their marketing from the customer's viewpoint. An example of this is taking a look at how you actually respond to direct mail. Do you jump at every mail piece that arrives in your mailbox? Or, more realistically, do you start to really take notice of a company's promotion once you have seen it repeatedly?

The marketing medium is something to consider as well. There are inexpensive ways to get started with marketing that will get you a good Return On your Investment and that will enable you to generate enough income consistently before you start branching out into other more expensive media. A postcard is a particular medium that works well for a number of reasons. I highly suggest finding a reputable direct mail postcard company that gives free marketing advice as your source for direct mail marketing. I would make sure that postcards are all they do, get references from them to investigate and call those references for data about that company. And remember, the absolute cheapest price isn't always the best ? you get what you pay for. There is a lot to learn about marketing. It is a powerful tool to expanding your business.

This four-point checklist that can help you discover where your business is losing money. Each of these points can be improved when you apply the correct tools. I base the validity of those correct tools on whether they get results ? not by my opinion ? but whether they actually work no matter what industry you are in.

Jeffrey F. Lee is CFO and Co-Founder of Measurable Solutions Inc., a consulting firm engaged in all areas of business management. He has found that all the basic principles of how to expand a business apply to any business when delivered in a very precise way. With his partner, he has built the most rapidly expanding company of its kind in the world.

Visit his website at http://www.measurablesolutions.com

Dowagiac prom limousines .. Lockport Chicago limo O’Hare
In The News:

Tech expert Kurt “CyberGuy" Knutsson says ChatGPT learns from chats, but you should avoid sharing sensitive information to protect your privacy.
Beyond Aero's BYA-1: Hydrogen-electric jet with zero emissions, reduced costs, 2030 launch. Kurt “CyberGuy" Knutsson discusses a potential game changer in the evolution of air travel.
Kurt "CyberGuy" Knutsson explains how you can creatively repurpose your old unused Android devices, which are full of potential and hidden value.
Mech the super-humanoid robot can lift up to 132 pounds and is designed to tackle stressful and repetitive tasks that often lead to workplace injuries.
Double-clicking is something we all do, often without giving it a second thought. But it could be giving hackers permission to do something dangerous.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Kurt the CyberGuy offers some of his easy expert tips to free up storage space on your Android if your device is running short on storage.
You can reset your internet router remotely if you're not home when your power goes out. Kurt "CyberGuy" Knutsson explains how this can be done.
The EO Canopy is a self-sustaining, solar-powered camping platform designed to provide all the comforts of home while completely off the grid.
Experts say hackers who used to focus on Windows operating systems are increasingly targeting Apple IDs as part of a new phishing campaign.
Unitree, a Chinese robotics company that developed a backflipping robot, has now introduced a humanoid robot capable of doing a side flip.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
According to the FBI, cybercriminals are sending extortion letters, threatening to release victims' sensitive information unless a ransom is paid.
FireSat is a satellite project designed to detect and track wildfires early, aiming to detect a fire that's the size of a classroom within 20 minutes.
Tech expert Kurt “CyberGuy" Knutsson reports that researchers have uncovered a Chrome vulnerability used in a cyber espionage campaign.
Preserving voicemails securely on Android: Tech expert Kurt “CyberGuy" Knutsson reveals easy methods to keep memories alive forever.
This phishing kit bypasses 2FA via session hijacking and real-time credential theft. Kurt “CyberGuy" Knutsson offers four ways to stay safe from Astaroth phishing attacks.
Tech expert Kurt “CyberGuy" Knutsson discusses Joby Aviation and Virgin Atlantic planning to launch 200-mph U.K. air taxis linking airports and cities.
Fake Apple virus warnings, security alerts and messages are tactics used to prompt you to call a number or click on a malicious link. The CyberGuy explains how to protect your devices.
The combination of artificial intelligence and neuroscience allows a paralyzed man to manipulate a robotic arm by using his brain to imagine movements.
With the help of artificial intelligence, sophisticated fraud techniques emerging today are virtually undetectable to the untrained eye.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents
If you need to free up space on your Mac, consider deleting duplicate photos in your image library. Apple makes it easy to do, and the CyberGuy explains the process.
Microsoft is discontinuing Skype in May after 22 years of service. Kurt the CyberGuy addresses other options for internet-based phone and video service.
Tron 1, a Chinese company's two-legged robot, is versatile and can walk, roll and pivot, even on rough terrain. Tron 1 stands 33 inches tall and weighs 44 pounds.

Small Business Server Business Tips

Top 3 Ways to Maximize Your Small Business Server Consulting... Read More

How To Get Slightly Famous in Print

Early in my career, I wrote an article for a... Read More

Collection Agency Selection

Frankly, given the legal and regulatory requirements involved in attempting... Read More

Beginning an Internship Program

CONSIDERATIONS FOR YOUR INTERN: Specify the number of hours the... Read More

Setting Up as an Electronic Repair Authorized Service Center

If you plan to upgrade your workshop into an Authorized... Read More

7 Reasons To Take Control Of Your Small Business? Checking Needs

Business checks are available in many styles and varieties. They... Read More

How to Profit Handsomely From a Secret Business Model Virtually No Small Business is Using!

Have you been searching for the perfect home-based business? I... Read More

Franchises Offer Shortcuts, But Not Control

Q: I will be retiring this year at age 60... Read More

Women and Small Business

In the book Women and Small Business author gives all... Read More

Mobile Detailing VS Fixed Site Detailers

Mobile detailers will find themselves with lots of competition even... Read More

Small Business - Would You Still Need An Accountant If You Didnt Need A Tax Return?

After over thirty years advising small business it still comes... Read More

How to Manage Your Pipeline

How is your pipeline structured?I assume most of you have... Read More

FTC Report on Franchise Rule Making; What Purpose?

The Federal Trade Commission out of the blue decide in... Read More

Asking the RIGHT Questions

Which questions do you need to ask to even get... Read More

Boat Hull Cleaning Procedures for Owners and Detailers

For really tough boat hull cleaning you will need to... Read More

Common Mistakes When Planning Your Medical Spa

Everything starts with a business plan: If you don't have... Read More

Franchise Companies Come and Go

Each day we hear of companies entering the franchising industry.... Read More

Making Direct Mail Work for Small Businesses

If you own a small business, then you know the... Read More

How to Protect Yourself & Your Business

As a business owner, you already know how important it... Read More

SBAs 8(a) Program Can Help Some Companies Compete

Q: A friend told me that as a woman of... Read More

SBIR vs STTR

SBIR vs. STTR: If you are participating in the SBIR... Read More

Janitorial Cleaning Service: Getting Started

A janitorial cleaning service is one of the best businesses... Read More

The Role of the Business Model and Strategy for Business

People will always stress that having a well researched business... Read More

Never Burn a Bridge

Why should you always maintain a good report with a... Read More

Do You Make These 7 Deadly Cash Flow Mistakes?

Managing cash flow is every small business owner's most important... Read More

shuttle from O'Hare Lake Villa ..