What you should do when your business make loss inorder for it to still make profits
When your business make loss then as an entrepreneur or business owner you should do the following inorder to bring your business back to its good state of making profits.
As an entrepreneur,you should know the total loss which the business has made and the cause of all the total loss which the business has made.
To determine the cause of total loss within the business then the entrepreneur's should take the following factors into consideration's.
The entrepreneur's should first consider whether the business makes sales,these can be determined by looking at sales records to know the total number of goods and services which the business have sold to the customers.Once the business founds that the business sales more but still makes loss then the business should determine the number of goods and services which have be sold at discounts to ascertain whether too much discounts have been given to customers who purchased goods and services from the business.When the entrepreneur's founds that they gave too much discounts and that is the cause of business loss,then the entrepreneur's should reduce the number of discounts they give to customers inorder for the business to operate at profits.
Entrepreneur's should also determine all goods and services which have been purchased by the business and have not been sold.When they found that there are certain types of products and services which have been purchased by the business and they have not been sold because the customers don't prefer purchasing those types of products and services then the business should stop purchasing or keeping stocks for those types of products and services so that they don't waste finance in purchasing those types of products and services,these will enable the business to save some finance which can be invested effectively within the business or used for other useful activities within the business.
The other factor to determine the cause of business loss is to look at all records for the goods and services which have be sold through credit to customers.Here the entrepreneur should be able to note down all goods and services which have been sold on credit and able to see which credit sales have been paid for verses those credit sales which have not been paid for by the customers.Once the entrepreneur's founds that there are alot of credit sales which have not been paid for and that is the cause of business loss then the entrepreneur should reduce the number of credit sales to customers.Here the entrepreneur's should also ensure that they collect all the debt which have not been paid from the credit sales they make to their customers so that the business operates at profits.The entrepreneurs should continue to extend credit sales or continues to sales goods and services on credit to trust worthy customers.
To further determine the cause of business loss,the entrepreneur should also be able to know the total amount of loans which the business has took from the banks to ascertain whether that is the cause of the business loss,because when the business took too many loans from the bank then the business will spend much of business incomes to repay the loans,these will drastically reduce finance within the business and as results will cause the business to operate at losses.When the business has too much loans which have to be repaid to the bank then the business should consider alternative ways to finance the business by either selling some of business assets which are not useful in the business so as to finance the business.
Incase it also happens that the business makes more sales but the business still make loss and the business has already determine credit factors that they sold goods and services on credit and found that all the credit sales were or have been paid for by the customers then the business should consider the total amount of salaries they are giving to their employees so as to determine whether the payments of salaries to the employees is the cause of the business losses.Here the entrepreneur's should consider reducing the amount of cash bonus they give to their employees or they can simply reduce the number of employees so that they remain with only skilled and experience staffs within the business for the business to generate more profits.
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How to finance business's
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Factors to consider before taking business loans
Types of loans
How business's can get loans from the bank easily
How to prevent the business from being bankruptcy
How to make money from all wastes in the business
How to make money in your business
Services which the business can get from bank's
Expenses which entrepreneurs encounters during their business operation
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How to invest effectively in business
Types of bank accounts which business's can open from the bank
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How to effectively advertise goods and services
The correct time when business have to advertise their goods and services
What to consider before advertising your business goods and services
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What to consider when taking customer order
How businesses can receive feedback from customers
How entrepreneurs can know trust worthy customers
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How to make customers to purchase goods and services which you are selling
How entrepreneurs can avoid misunderstanding with customers when taking their orders
How customers will easily identify the goods and services which you are selling
How entrepreneurs can attract more customers to their business
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How to hire best employees in business organization's
How to motivate employees within business organization's
How to study behaviour of employees within the business
What you should know about your employees
Benefits of having intern workers within your business
What is performance contract in business
What is employee's records and details to be included in employee's records
Steps to be taken before business can hold meeting for their employees
How employees can be active within the business organization's
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What is performance contract
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Types of purchases in businesses which entrepreneurs do
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Advantages of hire purchase to the seller in business
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Entrepreneurship
How to be successful in entrepreneurship
How you can sell goods and services cheaply within your business
Expenses which entrepreneurs encounters during their business operation
Factors to consider before starting the business
How to get business ideas
How to display goods/services in the business
How to display goods/services in the business
How to know that your business is performing well
When should entrepreneurs increase price for the goods and services which they sell
How to work comfortably within the business
Types of business records
How to classify business files
How to partition offices within the business
Discounts
Why business's gives discounts to customers
What is trade discount in business
What is quantity discount in business
What is cash discount in business
What is seasonal discount in business
What is promotional discounts
What is geographical discount
What is accumulative quantity discount in business
What is non-accumulative quantity discount in business
Type of discounts in business
Departments in business
Function of sale department 's in the business
Function of financial department's in the business
Function of human resource in the business
Function of purchase department 's in business
Stocks and Shares
What is IPO(Initial Public Offering) in stock market exchanges
What is stock broker when buying and selling shares
Difference between outstanding shares and treasury stocks at stock exchange
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What is redeemable shares when purchasing shares at stock market exchange
What is non-convertible shares
What is convertible preference shares when purchasing shares at stock market exchange
What is non-participating preference shares when purchasing shares at stock exchange market
What participating preference shares when purchasing shares at stock exchange market
What is non-cumulative-preference shares when purchasing shares at stock exchange market
What is cumulative preference shares when purchasing shares at stock exchange market
What is preference shares when purchasing shares at stock exchange market
What is ordinary shares when purchasing shares at stock exchange market
Types of preference shares in stock exchange
Types of shares in stock exchange market
What are shares in stock exchange market
Business cleanliness
Types of cleaning facilities which business must have
How employees can maintain good hygiene within business organization's
How to remove dusts from within the business organization's
Effects of dusts within the business organization's
How to wash business toilet thoroughly clean
How the business can have sufficient water
Major functions of water within business organization's
Insurance
What is insurance
What is cover policy
Types of insurance cover which your business should have
What is indemnity
What is deductible when taking insurance policy cover
How to prevent the business from fire
As an entrepreneur,you should know the total loss which the business has made and the cause of all the total loss which the business has made.
To determine the cause of total loss within the business then the entrepreneur's should take the following factors into consideration's.
The entrepreneur's should first consider whether the business makes sales,these can be determined by looking at sales records to know the total number of goods and services which the business have sold to the customers.Once the business founds that the business sales more but still makes loss then the business should determine the number of goods and services which have be sold at discounts to ascertain whether too much discounts have been given to customers who purchased goods and services from the business.When the entrepreneur's founds that they gave too much discounts and that is the cause of business loss,then the entrepreneur's should reduce the number of discounts they give to customers inorder for the business to operate at profits.
Entrepreneur's should also determine all goods and services which have been purchased by the business and have not been sold.When they found that there are certain types of products and services which have been purchased by the business and they have not been sold because the customers don't prefer purchasing those types of products and services then the business should stop purchasing or keeping stocks for those types of products and services so that they don't waste finance in purchasing those types of products and services,these will enable the business to save some finance which can be invested effectively within the business or used for other useful activities within the business.
The other factor to determine the cause of business loss is to look at all records for the goods and services which have be sold through credit to customers.Here the entrepreneur should be able to note down all goods and services which have been sold on credit and able to see which credit sales have been paid for verses those credit sales which have not been paid for by the customers.Once the entrepreneur's founds that there are alot of credit sales which have not been paid for and that is the cause of business loss then the entrepreneur should reduce the number of credit sales to customers.Here the entrepreneur's should also ensure that they collect all the debt which have not been paid from the credit sales they make to their customers so that the business operates at profits.The entrepreneurs should continue to extend credit sales or continues to sales goods and services on credit to trust worthy customers.
To further determine the cause of business loss,the entrepreneur should also be able to know the total amount of loans which the business has took from the banks to ascertain whether that is the cause of the business loss,because when the business took too many loans from the bank then the business will spend much of business incomes to repay the loans,these will drastically reduce finance within the business and as results will cause the business to operate at losses.When the business has too much loans which have to be repaid to the bank then the business should consider alternative ways to finance the business by either selling some of business assets which are not useful in the business so as to finance the business.
Incase it also happens that the business makes more sales but the business still make loss and the business has already determine credit factors that they sold goods and services on credit and found that all the credit sales were or have been paid for by the customers then the business should consider the total amount of salaries they are giving to their employees so as to determine whether the payments of salaries to the employees is the cause of the business losses.Here the entrepreneur's should consider reducing the amount of cash bonus they give to their employees or they can simply reduce the number of employees so that they remain with only skilled and experience staffs within the business for the business to generate more profits.
Related links
Finance
How to finance business's
How to manage finance within the business
Factors to consider before taking business loans
Types of loans
How business's can get loans from the bank easily
How to prevent the business from being bankruptcy
How to make money from all wastes in the business
How to make money in your business
Services which the business can get from bank's
Expenses which entrepreneurs encounters during their business operation
How entrepreneurs manage expenses so as to make more profits
How to invest effectively in business
Types of bank accounts which business's can open from the bank
Advertisements
How to effectively advertise goods and services
The correct time when business have to advertise their goods and services
What to consider before advertising your business goods and services
What details should be included when advertising products and services
The correct time when business have to advertise their goods and services
Customers
What to consider when taking customer order
How businesses can receive feedback from customers
How entrepreneurs can know trust worthy customers
How entrepreneurs cannot mislead customers
How to make customers to purchase goods and services which you are selling
How entrepreneurs can avoid misunderstanding with customers when taking their orders
How customers will easily identify the goods and services which you are selling
How entrepreneurs can attract more customers to their business
How entrepreneurs can treat customer’s well within their businesses
Human resource
Importance of delegation within the business organization's
How to hire best employees in business organization's
How to motivate employees within business organization's
How to study behaviour of employees within the business
What you should know about your employees
Benefits of having intern workers within your business
What is performance contract in business
What is employee's records and details to be included in employee's records
Steps to be taken before business can hold meeting for their employees
How employees can be active within the business organization's
How to supervise your employees
Ettiquette’s which should be maintained by employees within the business
What is performance contract
What is chain of command in business
How office messengers will deliver information's quickly within the business
Purchases
Types of purchases in businesses which entrepreneurs do
Disadvantages of hire purchase to the seller in business
Advantages of hire purchase to the seller in business
Disadvantages of hire purchase to the customers in business
Advantages of hire purchase buying to the customers in business
What is hire purchase in business
Entrepreneurship
How to be successful in entrepreneurship
How you can sell goods and services cheaply within your business
Expenses which entrepreneurs encounters during their business operation
Factors to consider before starting the business
How to get business ideas
How to display goods/services in the business
How to display goods/services in the business
How to know that your business is performing well
When should entrepreneurs increase price for the goods and services which they sell
How to work comfortably within the business
Types of business records
How to classify business files
How to partition offices within the business
Discounts
Why business's gives discounts to customers
What is trade discount in business
What is quantity discount in business
What is cash discount in business
What is seasonal discount in business
What is promotional discounts
What is geographical discount
What is accumulative quantity discount in business
What is non-accumulative quantity discount in business
Type of discounts in business
Departments in business
Function of sale department 's in the business
Function of financial department's in the business
Function of human resource in the business
Function of purchase department 's in business
Stocks and Shares
What is IPO(Initial Public Offering) in stock market exchanges
What is stock broker when buying and selling shares
Difference between outstanding shares and treasury stocks at stock exchange
What is guaranteed preference shares when purchasing shares at stock market exchange
What is redeemable shares when purchasing shares at stock market exchange
What is non-convertible shares
What is convertible preference shares when purchasing shares at stock market exchange
What is non-participating preference shares when purchasing shares at stock exchange market
What participating preference shares when purchasing shares at stock exchange market
What is non-cumulative-preference shares when purchasing shares at stock exchange market
What is cumulative preference shares when purchasing shares at stock exchange market
What is preference shares when purchasing shares at stock exchange market
What is ordinary shares when purchasing shares at stock exchange market
Types of preference shares in stock exchange
Types of shares in stock exchange market
What are shares in stock exchange market
Business cleanliness
Types of cleaning facilities which business must have
How employees can maintain good hygiene within business organization's
How to remove dusts from within the business organization's
Effects of dusts within the business organization's
How to wash business toilet thoroughly clean
How the business can have sufficient water
Major functions of water within business organization's
Insurance
What is insurance
What is cover policy
Types of insurance cover which your business should have
What is indemnity
What is deductible when taking insurance policy cover
How to prevent the business from fire
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