Cash counters have become a necessary component for effective running a small business. Think of it this way: Have you ever felt totally in control of your personal finances, only to check your account balance and discover that you've got far less cash than you thought? You aren't alone - it's incredibly easy to miscalculate your monetary situation. Things like small, spur-of-the-moment expenses and unnoticed fees can quickly add up, and it's your wallet that takes the hit.
The same phenomenon applies to many small-business owners. While it may feel like you're staying afloat with sufficient funds, there's likely money slipping through the cracks of your operation every day. For many budding companies, a lack of critical attention to their finances can be their ultimate downfall.
Don't let your small business fold because of flimsy financial management. Check out these tips for preventing profit loss:
Hire qualified staff members
Employees are the backbone of any small business, and whether or not they're good at their job can greatly impact how much money your company gains and loses. No matter what industry you're in - whether it's professional marketing or fast-food service - building a strong, committed team is one of the most financially savvy moves you can make. BFS Capital noted that many times, money is lost over the phone or at the front desk, when an associate is cold, rude, careless or simply uninformed. When selecting staff members, look for workers who are smart, polite and have experience dealing with customers.
It's important to note that bad employees cost your business in more ways than one: When workers are constantly quitting or being fired and your turnover rate is high, your expenses skyrocket. Recruiting, hiring and training new candidates is not only stressful but pricey as well. If you're stuck in a frustrating and financially draining cycle of employee turnover, Tech.Co recommended using a "quality over quantity" approach to hiring your newest batch of workers. The source suggested taking time and interviewing plenty of candidates as opposed to rushing through the onboarding process so that you can add a team member who's going to be a natural, productive fit.
Invest in a cash counter
You can't be sure how much money you're losing if you don't know how much you're supposed to have. As such, every small business needs a state-of-the-art cash counter, like the JetScan iFX i100, which processes 1,600 bills each minute. Cash counters are accurate and reliable, so you don't have to worry about money being lost due to human error. These devices can also detect fraudulent currency, which means you won't have to worry about taking in counterfeit cash.
Review your prices
If it seems like your books are a little light, it could be because you're over- or under-charging customers for the products and services your business offers. In both cases, the incorrect pricing of items could be a major source of money loss for your organization. To remedy this issues, BFS Capital recommended adopting either a cost-based or value-based pricing system.
With cost-based pricing, you first assess all the costs involved with getting a product in your store, then crunch the numbers to see how much you'd have to sell the item for in order to turn a reasonable profit. Under a value-based strategy, you would analyze the value that your products bring to consumers, and create a price point somewhere slightly below that number. Depending on the industry you're in and the type of business you're trying to run, either option can be useful for creating more market-friendly prices.
May 26, 2017