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By Henry Brown

Money loss can happen for any number of reasons in your business. Try as you might, your company struggles to make profits as you are losing too much money from one avenue or another. Today, we’re going to look at some ways to prevent money loss by tackling a few of the common causes of it. In turn, you can patch up the money leaks and run a more profitable ship!

Purchase business insurance

Too many small business owners make the mistake of not buying insurance. As a consequence, money loss is bound to happen if someone gets hurt or injured on your premises. Likewise, if someone gets hurt by your products or services, they can sue you for compensation. You’ve also got employees that can sue you for any injuries or misconduct, so there are plenty of ways for a business to suffer financially without insurance.

At the very least, every business owner needs to have general liability insurance for small businesses. This will cover you if customers or members of the public get hurt on your premises. This is the most common way for businesses to get sued, which is why the insurance is so crucial. Explore other types of business insurance as well, protecting your company and preventing money loss via this medium.

Conduct market research

Another common way to lose money is by spending too much on your marketing or advertising campaigns. You pump loads of money into them but see poor results. Why? Because you’ve not done enough market research!

Research your industry, research your target market, and you will quickly learn what needs to be done to capture the attention of your ideal customer. From here, you can use your research to power your marketing strategies, only paying for things that are proven to work. It stops you from wasting money on techniques and campaigns that are doomed to fail because you didn’t research things properly.

Compare suppliers

Last but not least, small businesses lose money because they keep themselves tied to expensive suppliers. This happens far too often; you find a supplier (probably after doing little research) and stay with them for years. Little did you know that other suppliers may exist with better prices than your one. Even if they were the cheapest at the time, it doesn’t mean they always will be.

Get into the habit of comparing suppliers whenever your contracts are running out. See who can offer the best deals, then use them. You will be stunned at how much money you can save every year – especially on things like your business internet or energy bills.

If you look at the three ideas above, you’ll notice we’ve covered some key areas of your business where money is lost. In the previous point, we spoke about main business expenses and how you can reduce them. The second point is about marketing, which always takes up a huge chunk of your budget. In the first point, we looked at the idea of liability and how vulnerable a business can be. If you can plug up the holes where money is lost, your business is more likely to stay afloat and sail towards profits.

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Henry Brown is an online marketing executive. When he isn’t talking shop, he’s roaming the streets of London, uncovering the extra-ordinary in the ordinary.