Do you feel as though your business isn’t making as much money as it could be? If so, there could be a lot of reasons behind this. If you want to make a change then you need to focus on where you’re going wrong, so you can begin to put yourself right.

No Product-Market Fit

This can be a difficult pill to swallow. Many start-up companies fail simply because they try to tackle existing problems rather than actively trying to solve the needs of the market. While interesting problems can often be inspiring, you have to remember that the solutions don’t often make money.  If you want to help yourself here then you need to evaluate your product’s market. Do you have an audience? Why would they want to buy from you? If you can give things like this some consideration then you will be able to come to a conclusion about whether or not your product is a good fit for the market you have chosen.

Tough Competition

If you have found a great idea for your business then this is fantastic. The problem is, you’re probably not the only one. It isn’t healthy for you to obsess constantly over your competition, but there will come a time when you have to give them a bit of attention. If you feel as though they are dominating the space and they are undercutting you all the time, then this is a sign that you are in major trouble. If your business is not making money because of tough competition then now is the time for you to do something about that. You will need to pivot so you can address a different market need, or you will need to upgrade your product so you can beat your competition fair and square. 

You’ve Chosen the Wrong Vendors

Another reason why you might not be making as much money as you could be is if you are choosing the wrong vendors. It may be that you have chosen people who are charging too much for the base product and this is the last thing you need. If you are a dealer of essential oils, find an essential oil supplier who can give you the fragrance you need and at an affordable price. If you can do this then you will soon find that you can get the biggest profit margin. Leaving a vendor and seeking out a new one is never a nice experience, especially if you have built a rapport with them over the years. With that being said, you do need to make sure that you aren’t putting the success of their business before your own. If you do then you may find that you end up running yourself into the ground which is the last thing you need

So as you can see, there are many reasons why you aren’t making money, and if you follow this guide, you should be able to pinpoint the reason why and deal with it effectively.