More Loss, Less Profit – Finding The Reason Why

Companies often find their initial run very successful: they get tons of business opportunities, their bottom line soars and pretty soon, they are breaking even. Unfortunately, this rarely lasts. Even well established companies find themselves edging towards that dreaded red line and then all hell breaks loose within the ranks. Here are some of the reasons why companies may be facing loss over profit:

Unpredictable Market

Sometimes, there is really nothing that anyone inside the company can do. It can be natural conditions or some external influence, but markets fluctuate all the time and prices of certain goods and services can go down, influencing others and then dragging other prices with it. No matter how much the b2c and outsourced marketing services are pushed, it will not be able to magically hold on while competitors suffer. The only solution is to batten down the hatches, weather the storm and rise up again once it’s over.

Internal Policy Fail

Sometimes, certain policies are put into practice that does not work after a while because conditions change. However, the policies remain. They cause havoc later on because they are not equipped to deal with current conditions. The opposite can also be true. There will be situations, sometimes on an ad hoc basis, that do not have any policies and then employees are left scattering to the four winds in search of guidance. This usually occurs when there is no B2B sales & marketing planners because it wasn’t necessary up to now. However, as companies grow they find that they need to update their policies along with their products and services.

Employee Demotivation

Another common failure, especially in bigger corporate entities, is employee demotivation. Many employees do not feel any loyalty towards the companies they serve unless they feel that the company is loyal to them too. Millennials are famous for this attitude, especially since they consider adequate pay, job satisfaction and other non-monetary perks as loyalty of the company. When employees feel like just another cog in the wheel they become demotivated. This leads to careless mistakes, pushed back deadlines, excuses and the like which affect the company’s bottom line.
Corruption Within