top 11 ways enterprise companies leak money
TRANSCRIPT
TOP 11 WAYS E N T E R P R I S E C O M P A N I E S
L E A K M O N E Y
REVENUE&COSTS
Of every metric business leaders consider, the most common measure of success is profitability. The two
basic elements of profitability?
INTRODUCTIONUnfortunately, some enterprises focus too much on growing revenue without dedicating nearly enough time to reducing spend. An annual revenue of $50 million doesn’t mean much if expenses are close to $70 million.
To keep an enterprise efficient and profitable, the C-suite must avoid the typical
mistakes short-sighted businesses often make.
INACCURATE ACCOUNTING
Even large enterprises with a sizeable accounting department can fall victim to costly
errors if a proper system isn’t in place. A small miscalculation can have a BIG impact
on profitability, so it’s crucial to ensure all financial data is up-to-date, accurate and
correctly recorded.
#1
NO ATTENTION TO DETAIL
Something as minor as a missing signature or an unchecked box on a contract can be
disastrous for an enterprise. Each employee in every department—from operations to
sales to facilities management—must be confident that every i is dotted and every t
is crossed.
#2
INSUFFICIENT COMMUNICATION WITH CUSTOMERS
Without customers there is no enterprise, and without proper communication there
are no customers. The sales team put a lot of effort into acquiring each customer,
which means there should be consistent correspondence throughout the engagement.
Insufficient communication will lead to high churn.
#3
HIGH EMPLOYEE TURNOVER
Replacing employees is expensive. In fact, according to a study by the Center for
American Progress, replacing a senior executive can cost up to 213% of their annual
salary. Enterprises that don’t focus on creating a positive, enjoyable workplace will
see low levels of retention and high turnover.
#4
MEDIOCRE MARKETING OR WEBSITE
A sub-par website or poorly executed marketing strategy can hurt an enterprise’s lead
gen and demand gen efforts, leading to a lower conversion rate and, in turn, a higher
cost per lead. Businesses should be acutely aware of how their brand is perceived as
well as provide a positive customer experience for every prospect.
#5
OUTDATED TECHNOLOGY
Without cutting-edge software (or, at the very least, current technology), an enterprise
will not only have a hard time scaling the business but it will also miss opportunities to
cut wasteful spending and increase overall efficiency.
#6
IMPROPER RESOURCE DISTRIBUTION
One of the biggest ways enterprises can lose money is by not effectively allocating
its resources—in particular, budget, time and employees. Haphazardly implementing
processes or blindly agreeing to any and every project without considering practicality
is a quick way to hemorrhage money.
#7
POOR SPACE UTILIZATION
In addition to improper resource allocation, poor space utilization can also be a big
drain on an enterprise’s budget. When a business is paying for space it isn’t using,
it’s essentially throwing money away—money that could be used for other necessary
expenses. Companies must track space utilization to ensure every inch of their
buildings is being used efficiently.
#8
SLOW RESPONSE
When a prospect reaches out to a company, he or she expects an answer quickly.
If a business takes more than 24 hours to respond to an inquiry, it’s very likely the
prospect will go with one of the other companies he or she also contacted. This means
missed revenue. Business moves at the speed of light, and brands that ignore this will
be left behind.
#9
FAILURE TO TRACK ASSETS
Not knowing the location and status of assets (including computers, printers and
even coffee machines) can result in an enterprise replacing equipment unnecessarily.
Businesses that use an asset tracking solution have better visibility into where every device
is, how they are performing and whether something needs service or should be replaced.
#10
MAKING ASSUMPTIONS
Every customer is unique with their own specific requirements and goals. An
enterprise that makes assumptions about what a customer wants (instead of asking
the customer directly) will find itself watching clients head to a competitor that adjusts
their solution as best they can to fit each customer’s specific needs.
#11
Successful enterprises know running as efficiently and economically as possible is just as important as
working toward higher revenue.
Averting the aforementioned issues will lead to
higher profitability and increased longevity.
One of the most effective ways to achieve better profitability is with an integrated workforce management system (IWMS).
Learn more about how an IWMS can benefit your enterprise with the free eBook, “Your Comprehensive Guide to Identifying FM Software Needs.”
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