Why is it that your competitors seem to be growing and you are not? The experts of tax and bookkeeping in Irvine, CA, throw some light into this mystery.
You have had a small business for some years now and you know that you are in the right place, you have a good price, your target market is the one you are supposed to reach and you are promoting your products with a good strategy. So, why is it that your competitors seem to be growing and you are not? Are they stealing your customers? You have been researching their companies and they are not doing anything different or are they? This article is about the things that your competitors might be doing better than you that are worth looking at and that you might not know. Things that are not obvious, such as advertising or promotions, things that you might be overlooking that might be a key factor for your growth. The experts of tax and bookkeeping in Irvine, CA, throw some light into this mystery.
Everybody look at the obvious places, especially if you have no business training: the most difficult thing to do when you are a business owner is to find out those opportunity areas that are waiting for you to make them more efficient.
Pricing: this might look like an evident topic, but when was the last time that you check your prices?, I am not talking about the price comparison between you and your competitors; what I mean is to review your final price and analyze if you are actually covering your costs. You need to review them periodically because some things like a rise in rents, electrical power, insurance, fuel, raw material, etc. might have happened and you didn’t adjust the product price accordingly.
Operations can be a tricky part of a business, even for a small business: it is very easy to overlook some extra costs that might be affecting your cash at the end of the month, and you have to keep in mind that your staff might not have the same “saving” set of mind as you. Those extra supplies that look harmless individually will eventually pile up at the end of the month and take a considerable chunk out of your cash. Can you run your coffee shop with fewer employees? Do you really need to pay for a cleaning service instead of having your own employees doing it? Are you getting the best deals out of your suppliers? There are many places where you can save money and run a more efficient business operation.
Administration: this is often an overlooked part of a business. How long does it take to get an invoice paid? Are you making smart investments? Is your bank account always up to date? Are you paying a higher interest than usual? Should you re-negotiate a loan?
All of the above are just a few things that your competitors might be doing better than you and the cause may be that you don’t have a professional accounting service such as the tax and bookkeeping service in Irvine CA. So you should consider making an appointment with your bookkeeper and start asking the hard questions.