Causes of inconsistent income in business

[cherry123]

The thing is that some times you would experience high and low moments with your income in your business. What can be the causes of this fluctuations

Low sales will bring low income and vice versa

The level or rate of expenses or bills to be paid brings revenue inconsistencies

Level of production or restock also cost revenue inconsistency. high production brings more income etc

Add yours

 

[Heatman]

If you get into unnecessary expenses in your business, it's gravely going to affect your business profit making margins. Bad expenses kills businesses.

 

[Smalto]

The thing is that some times you would experience high and low moments with your income in your business. What can be the causes of this fluctuations

Low sales will bring low income and vice versa

The level or rate of expenses or bills to be paid brings revenue inconsistencies

Level of production or restock also cost revenue inconsistency. high production brings more income etc

Add yours

If what you are spending bro run the business on a daily or weekly basis is bigger than your profit or some reasonable amount of the capital in the business, then there might be some inconsistencies in the business.

 

[hastral45]

The thing is that some times you would experience high and low moments with your income in your business. What can be the causes of this fluctuations

Low sales will bring low income and vice versa

The level or rate of expenses or bills to be paid brings revenue inconsistencies

Level of production or restock also cost revenue inconsistency. high production brings more income etc

Add yours

Inconsistence do seldom occur in big companies unless where workers wages are on commission bases. Those on fixed salaries do not experience Inconsistence incomes.
Nevertheless, Inconsistence incomes can occur based on rate of income generated.

 

[IB D]

Continuous inflation would make your income from your business to be inconsistent. That's because the price of inputs would keep on changing and it would be affecting your income as they keep on rising.

 

[cherry123]

Exactly, Bad expenses kills businesses and makes them to have inconsistent income you can't really have high income the reverse can be the case.you get very low income instead now

 

[IB D]

Like now, I went to buy products for my business at the price of 15,000. And by the time I go back, the price has increased to 25,000. The level of income for the business would surely reduce.

 

[cherry123]

Definitely, everything about a business seems not to work well when there's fluctuations in the income of the business so the business owner need to devise means for bringing in higher income

 

[hastral45]

Definitely, everything about a business seems not to work well when there's fluctuations in the income of the business so the business owner need to devise means for bringing in higher income

There is common saying in Nigeria that either the owner of the business makes profit or not, its worker must receive his fixed salary. He is rest assured that nothing would reduce his salary. So the issue of salary fluctuation does not arise.

 

[cherry123]

Yeah salary is fixed whether the income is fixed or not so there's nothing that would reduce the salary. So the issue of fluctuation arise more when it's concerns the income of the business

 

[uptrendfinancialsignal]

To achieve a consistent income in a business, there is need to carry out proper business activities that will enhance or drive the sales.

 

[Heatman]

Continuous inflation would make your income from your business to be inconsistent. That's because the price of inputs would keep on changing and it would be affecting your income as they keep on rising.

Inflation will not actually affect your income but it will affect your profit-making because when there is inflation everything will be costly and when you are selling at a high price you will be making more money but you will be making less profit.

 

[hastral45]

Inflation will not actually affect your income but it will affect your profit-making because when there is inflation everything will be costly and when you are selling at a high price you will be making more money but you will be making less profit.

Inflation too has adverse effect on workers salaries. Though it might not caused them to have inconsistent incomes, but it would increase their cost of living. They would be spending more of their incomes on lesser Commodities thereby reducing their saving incomes.

 

[Stardom22]

There are so many reasons that can make the sales of yours business to be inconsistent. Some of the reasons are;
Poor marketing strategies,
Lack of business funding that can cause low stocks that results to low sales.

 

[Chibson]

Government policies can actually affect the amount of income in a business venture. Inflation can also cause inconsistent income in a business.

 

[Springtime]

I think it is quite normal for business to have inconsistencies in income. People tend to spend more on festivals and holidays. During economic downturn or in situations like the Pandemic, your business will be seriously affected. To prepare for the worst, you need to manage your cash flow properly to ensure your company will not get into liquidity problem.

 

[Chibson]

That's true, seasons can actually determine how successful a particular business will be. Of course a lot of people are always ready to spend money during festivities.

 

[Shavkat]

If you get into unnecessary expenses in your business, it's gravely going to affect your business profit making margins. Bad expenses kills businesses.

I do agree with you. It can also include the accrued expenses. As much as possible, the business owner to do cost-cutting. In this way, they can prevent this concern or issues.

 

[astutimeliana723]

One of the causes of inconsistent business income is market trends that change rapidly, so if you don't follow the trend, sales will decrease. If you follow the trend, you will need capital/additional product procurement costs. So all of that causes inconsistent business income.

 

[Chibson]

If the business owner do not cut down the cost of running a business it will probably cause inconsistency. That is why it is important that business apple employ those who are much knowledgeable when it comes to financial Management.