There are many mistakes that businesses often make, but one of the biggest is to confuse making money with making sales. This isn’t a mistake that only new business owners make. Managers think that business is all about being busy and keeping your cash register ringing but it’s much more than that. If a manager fails to take steps to make sure that the business earns enough to cover the daily costs plus be able to bring home a substantial paycheck, then you’re counting the days until the business has to close up shop.
When someone goes into a business, the need to make a profit is stressed but just exactly how to do that gets lost in translation sometimes. Being aware of the numbers is essential so you can find out whether there will be money left in the business after all the bills are paid. Discounts are well and good but if you bring the price down too low, the profits will end up being literally pennies. Freebies and extra services that are given away when they shouldn’t be end up hurting you more than the goodwill you get from your customers.