Common Business Mistakes That Limit Profitability – A Tech With Heart Interview with Candy Messer

Feb 27, 2024Business Growth, News, Small Business, tech with heart

Promotional image of Michelle Calloway and Candy Messer

Common Challenges Faced by Small Business Owners

Lack of Financial Clarity:

Understanding financials is crucial for informed decision-making. Without clear insights into revenue, expenses, and profit margins, business owners may make uninformed choices.

Regularly review financial statements, including income statements, balance sheets, and cash flow statements. Seek professional help if needed to interpret the numbers accurately.

Pricing Mistakes:

Incorrect pricing can lead to profit erosion. Setting prices too low may attract customers but harm profitability.

Know the costs of doing business, and the costs associated with creating and delivering a product or service. Take all of these things into consideration when pricing a product or service.

Set income goals for the business and build the pricing structure with that in mind, while also analyzing the competition to stay within a competitive price range.

Inefficient Operations:

Inefficiencies waste resources and increase costs. Small businesses often struggle with streamlined processes.

Identify bottlenecks and streamline workflows. Automate repetitive tasks where possible. Efficient operations directly impact profitability.

Neglecting Cash Flow:

Cash flow management is vital. Balancing income and expenses ensures stability. Monitor cash flow regularly. Plan for seasonal fluctuations and unexpected expenses. Maintain a cash reserve.

Ignoring Technology:

Technology can significantly enhance efficiency and reduce costs. Leverage accounting software for accurate record-keeping. Explore digital marketing channels to reach a wider audience. Automate routine tasks to free up time for strategic decisions.

The Tech With Heart Foundation simplifies technology concepts for small business owners, so they can be competitive in a rapidly changing digital era. In this episode of the Tech With Heart Show, Media and Technology Strategist, Michelle Calloway interviews profitability advisor, Candy Messer, who shares several key mistakes that small business owners make that negatively impact their profitability.

Watch Interview

In This Episode You Will Learn:

  • How compliance impacts profitability (business licenses, DBAs, sales tax, 1099s)
  • Business bookkeeping principles (don’t mix biz and personal funds, reconcile balance sheet accounts)
  • How to avoid poor cash flow -budgeting, invoicing consistently, pricing correctly

Strategies for Increasing Profitability

Know Your Numbers:

Regularly review financial statements (profit and loss, balance sheet, cash flow). Understand profit margins, fixed costs, and variable costs. Armed with accurate data, you can make informed decisions to improve profitability.

Optimize Pricing:

Assess your current pricing structure. Are you leaving money on the table? Consider dynamic pricing based on market demand or bundling services/products. Charge based on the value your offering brings to customers.

Focus on Customer Retention:

Repeat business is more profitable than constantly acquiring new customers. Build strong relationships with existing clients. Provide exceptional service to encourage loyalty.

Cut Unnecessary Expenses:

Regularly review expenses. Identify non-essential costs that can be eliminated. Every Dollar Counts: Even small savings add up over time.

Embrace Technology:

Efficiency Boost: Invest in accounting software. Automate invoicing, payroll, and other administrative tasks.

Digital Marketing: Leverage social media, email marketing, and online advertising.

Stay Updated: Technology evolves—stay informed about new tools and trends.

Remember, profitability isn’t a luxury; it’s a necessity for sustained business growth. Implement these strategies, adapt to changing circumstances, and keep your heart in tech!

About Guest Candy Messer

Headshot of Candy Messer, with long gray hair and green top

Candy Messer is a profitability and growth advisor working with entrepreneurs in service-based industries to help them have successful businesses.  With experience in the bookkeeping industry since 1998, Candy understands the stresses business owners face and offers customized services to meet their varying needs.

Her company energizes business owners by removing the burden of compliance tasks as well as working with them to identify issues preventing higher profitability and/or growth. As a result of using her services, clients have peace of mind and the freedom to do what they love.  

Candy is co-author of Business Success With Ease, Navigating Entrepreneurship, Yes, God, and Maintain a Solid Mental Health and is the host of the “Biz Help For You” podcast which can be found on YouTube, as well as multiple podcast channels.

Candy has been married since 1992 to her husband Garth and they have a son, daughter, son-in-law, and three grandsons. When not running her company, Candy enjoys reading, crocheting, logic puzzles and spending time with friends and family.

You can find out more information about Affordable Bookkeeping and Payroll Services at www.abandp.com.

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About Tech With Heart

Tech With Heart is a nonprofit 501(c)(3) foundation focused on creating a safe, nurturing learning environment for entrepreneurs, students, and children. Tech With Heart is a nonprofit with a passion to ENLIGHTEN and EMPOWER business owners to EMBRACE technology and business strategies that will keep them competitive and relevant for long-term success, in a rapidly changing digital world. The entrepreneurial support program, Tech With Heart Network, is unlike other business networks because they are a nonprofit focused on serving and supporting, not gaining financial wealth.

  • Members are heart-centered AND forward-thinking
  • They teach emerging technologies and growth strategies
  • All questions are good questions. They provide timely answers too!
  • All ages and knowledge levels are welcome to participate
  • Members build and nurture long-term business relationships as they grow alongside one another
  • Warm, professional, and vetted business referral network

Visibility and promotional opportunities for experts and influencers as they enlighten and empower the entrepreneurial audience

Would You Like To Be Interviewed On The Tech With Heart Network Or TV Show? 

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We are always on the lookout for innovative, heart-centered business experts to be interviewed on the Tech With Heart stage.

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