Why you keep making sales but no profit.

[TOZZIBLINKZ]

A large majority of business owners who own and control various business organisations and commercial enterprises can testify to the fact that they are indeed making sales , but that at the end of the day are not able to track their earnings , profit , and income for the day , week , or month . sometimes the cause of these is as a result of not putting some important factors that determines business profitability into consideration . It is always advised that while making business sells and rendering business services it is always advised to separate money which serves as business profit from money meant for carrying out business cost of production so as to make it easy for you to track your income and money that signifies your business profit .

Another thing that make us not to have a reasonable amount of business income or earnings at the end of the day or at the end of a particular week is as a result of accumulating high amount or rate of business cost of production or cost of carrying out practices and activities . This is actually true , Because majority of business owners spend money on things that are on necessary and undemanded in the business organisation , for example getting a new motor van for the business when the business organisation already have good and well positioned 10 motor vans , is actually considered as an unnecessary or an undemanded business spending and expenditure .

 

[Jasz]

It's easy to get carried away with increasing sales. After all, it's the goal of every business. But what happens when you increase your sales, but you still aren't making profits?

There are a few things that could be happening: You're spending too much on your marketing. Your products or services are too expensive, and you're losing money on each sale. You're buying materials at a higher price than you're selling them for. It doesn't matter how many sales you make if your costs exceed the revenue they bring in. Here are some signs that this is what's happening to you: You know exactly how much it costs to produce each product but not how much revenue each product brings in By the time you've sold any of the products, you've already lost money on them You don't have a clear picture of how much it costs to run your business What can you do about it? Have someone who isn't involved with your business calculate the cost of all of the expenses associated with producing your product. This includes materials and labor. Once they have an accurate number, it will be easier for them to determine whether or not there is enough profit left over after these costs are covered.

 

[Sotherefore]

What I am seeing here to is as a result of bad business planning , that is why so many people may not likely be able to generate profit in the area of business they have chosen to concentrate on.

If it is because of lack of management, we could say that the business owners are mismanaging the business by spending more from the business than what he or she is earning and this is always one of the reasons so many business owners are not likely to generate a reasonable profit.

Sometimes lack of proper organisation can lead to dishonesty and cheating in a business organisation . This can also cut off a potential profit of any business organisation.

It is advisable that we only deals with trusted people that can help our business progress forward.

If this is not really the cause then probably the price of the product is lower than the cost of production, a lot of business always find difficulties in balancing these two things because in most cases competitions makes it quite difficult for people to make a reasonable profit from their business because they will be forced to sell at the market price and sometimes this is not always profitable.

 

[CALVINDOL]

Are you a business owner that is fully aware that his or her business is actually making sales and it is actually visible that your business is totally impacting members of the public but I'm coming home or at the end of the day you came to find out that there is absolutely no profits and incomes made at the result of selling and rendering your business groups and services but yet your business stocks and inventories seems to be on a reducing rates which simply showcases that your business is indeed selling but in this case makes no profit .

One of the mistake that usually live to be this is when a business owner doesn't separate his business income from his personal income and because of these he may end up spending money in as much as he would have spend . It is advisable to my business on after making a particular cell or rendering of business services should make sure to distinguish his business profit and his own personal profit so that she can be absolutely aware of which money to spend and which are not to spend . It is also advisable to cut down your business expenditure so that you can make more profit in as much as he spend .