4 key factors impacting business profitability

[cherry123]

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]

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]

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]

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]

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]

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]

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

 

[Fidelia]

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]

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

 

[Stardom22]

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

 

[Sanjeev]

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]

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]

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]

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

 

[cherry123]

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]

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