Post a new topic
    7 Replies Latest reply on Jan 27, 2018 8:54 AM by moderator_lee

    What is your biggest challenge in your business?

    bibi Adventurer

      I want to know if i am alone on this one but for me my biggest challenge is the fact that my profit margin is super small and i am really almost giving up hope. Is anyone else currently facing challenges as well?

        • Re: What is your biggest challenge in your business?
          moderator_lisa Ranger

          I think every business owner struggles with this issue, especially at first. I'm glad you asked here before becoming completely discouraged. I hope our members will have some helpful insights and suggestions. 

           

          How long has your bakery and coffee shop been open? Do you have plenty of customers, and are any of them return visitors? If your traffic and sales are both good, is it possible you are under-charging for your products? 

           

          --Lisa

          1 of 1 people found this helpful
          • Re: What is your biggest challenge in your business?
            moderator_lee Navigator

            Hi bibi,

             

            Lisa gave some excellent input, especially the part about undercharging is something often overlooked. Remember, it is always easier and more enthusiastically welcomed by customers to reduce prices again at any given time than it is to raise them. Making sure your profit margin is high enough on each sale also gives you a room to offer coupons or other special deals without suffering for it, things which catch attention and encourage new clients to give your business a chance.

             

            Are you managing your own books? if so, it may help to have a second bookkeeper look over things, sometimes all we need is a second pair of eyes to notice something we haven't.

             

            Keep us updated, always ready to hear how things are going.

             

            Regards,
            Lee

              • Re: What is your biggest challenge in your business?
                bibi Adventurer

                Yes i am managing my own books, so you might actually have a point. The thing is, i don't know if i can trust anyone to do it.

                  • Re: What is your biggest challenge in your business?
                    moderator_lee Navigator

                    Hi bibi,

                     

                    I can certainly understand your apprehension about letting someone else in on such a sensitive matter as finances. But remember, professional bookkeepers make their living handling such material, their reputations depend on discretion. Ask around among people you DO trust, such as friends and family, to see who they might be able to recommend and then do your own research on them. In the end, it would be a shame if your business lost a chance at thriving due to distrusting professionals, don't you think? This piece talks about the most important team members any business should seriously consider for their best chance at success: The 6 essential teammates your small business must have

                     

                     

                    As an artist, I've often had to keep costs down to not end up in debt to myself during times my production is lower. Prioritizing is important -- I know good quality pigments and brushes are a must if I want a good quality finished piece that is worth the asking price. And in the meantime, adapting a smaller area to a studio and taking on some inconveniences that brings saves on rent. When I lived overseas, I painted exclusively miniatures, to keep shipping costs down without risking damage. You've got to be creative and, your being a professional baker, I know you are too!

                     

                     

                    Another article I found helpful pretty much lays out the backbone of priorities with consideration of this issue -- Being Cheap Can Cost Your Business  -- and accounting services is on this very short list, too. You don't need a full-time employee, but you also should consider it a risk not having an expert at least look things over and offer input on the troubles you are having. When it comes down to this type of expense, especially if the business is already struggling, I always ask myself if it is worth possibly saving the business or not. If eventually I'd find myself saying no, I imagine it would be time to move on.

                     

                     

                    Regarding the articles I have shared with you here, I found it very telling that both authors -- from quite different backgrounds of experience and expertise -- very closely agree with each other on the absolute most necessary things.

                     

                     

                    Keep us updated, we all know these hard times. Just remember that they often don't have to mean the end if we make the right moves. And if it does, at the very least you'll have gained invaluable experience for future projects.

                     

                    -Lee