top 11 ways enterprise companies leak money

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TOP 11 WAYS ENTERPRISE COMPANIES LEAK MONEY

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Page 1: Top 11 Ways Enterprise Companies Leak Money

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

Page 2: Top 11 Ways Enterprise Companies Leak Money

REVENUE&COSTS

Of every metric business leaders consider, the most common measure of success is profitability. The two

basic elements of profitability?

Page 3: Top 11 Ways Enterprise Companies Leak Money

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.

Page 4: Top 11 Ways Enterprise Companies Leak Money

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

Page 5: Top 11 Ways Enterprise Companies Leak Money

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

Page 6: Top 11 Ways Enterprise Companies Leak Money

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

Page 7: Top 11 Ways Enterprise Companies Leak Money

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

Page 8: Top 11 Ways Enterprise Companies Leak Money

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

Page 9: Top 11 Ways Enterprise Companies Leak Money

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

Page 10: Top 11 Ways Enterprise Companies Leak Money

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

Page 11: Top 11 Ways Enterprise Companies Leak Money

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

Page 12: Top 11 Ways Enterprise Companies Leak Money

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

Page 13: Top 11 Ways Enterprise Companies Leak Money

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

Page 14: Top 11 Ways Enterprise Companies Leak Money

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

Page 15: Top 11 Ways Enterprise Companies Leak Money

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.

Page 16: Top 11 Ways Enterprise Companies Leak Money

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.”

DOWNLOAD HERE