4 key factors impacting business profitability

cherry123 · Feb 11, 2024

When you run a business and you are not seeing the kind of profit you anticipated then there are 4 key areas that are impacting your business negatively. These includes;

Low pricing of your product or service. With this issue you would naturally have low profit

You are in a highly competitive industry. Driving sales for high profit here will be difficult

Your overhead or hidden costs is higher then your profit You need to checkmate this

You are using a flawed Marketing Strategy.

Starmix · Feb 11, 2024

Those all you mentioned are good factors that impact your business profitability. We need to be keen, smart, and wise in dealing with our business if not, it will not profit but rather slowing.

nomad · Feb 11, 2024

First and foremost you need to choose between selling to the masses o selling to the niche market. Your target market determines your profitability. You will have to create products that are fit for your market

Starmix · Feb 11, 2024

It's good to know the right target and an appealing niche to hit the goal profitably. It's best to draft a good plan and digest it well if perfect to make a final start.

timewo · Feb 11, 2024

Another factor which most business owners do not consider is having powerful officials or companies as enemies out to destroy the business. Powerful top government employees are wasting taxpayer money to destroy my business, are involved in frauds on me causing losses.

cherry123 · Feb 12, 2024

Yes we need to cut down on factors that would impact negatively on business profits. overhead or hidden costs should be cut down if higher then your profit to make progress

Ratine · Jun 23, 2024

One of the factors should be the cost of running the businesses. This should always be maintained at the low costs ever

Fidelia · Jun 25, 2024

It could also be that your turnover rate is quite low. If it is really high, you should be able to see adequate profits.

Shavkat · Jun 25, 2024

I do agree with you. These are the key elements that a business will survive in the business world.

Stardom22 · Jul 7, 2024

For the business to be so profitable, the business managers should be working deligently on the marketing and promotional strategies.

Sanjeev · Jul 7, 2024

There are many factors on which the profit of a business depends like sale, profit margins, cost of production, rejection rate, cost of raw material, transportation cost. These all contribute for the profit of your business.

eldavis · Jul 8, 2024

Low pricing is a major issue I am currently facing, especially now that the price of things has skyrocket. Customers still want to pay the old price and lesser.

Stardom22 · Jul 8, 2024

In that case scenario, the business manager should be able to implement Maximisation of profits measures so that works on boosting the profitability of the business.

King Belieal · Jul 8, 2024

When the location of a business is very saturated with a particular product, profit margins are always affected in the end.

cherry123 · Sep 30, 2024

you need to always check your overhead or hidden costs to know it is not higher then your profit You need to checkmate it if it is

Niyi Briggs · Sep 30, 2024

I often wonder how people get to cope operating in a very highly competitive industry. Profitability could be very marginal in such industries.

4 key factors impacting business profitability

cherry123

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timewo

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cherry123

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Fidelia

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Sanjeev

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eldavis

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King Belieal

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