Ways to Keep Your Business Losses Down and the Cash Coming In

When you initially open your business, you will lose money to damaged merchandise, inventory that disappears without a trace, and credit card chargebacks that you can’t do much about. Unregulated business losses can cause a startup company to go from staying well ahead of the curve to being on the brink of bankruptcy. Although it takes time to learn how to work through employee and customer issues amicably, you can’t afford to be a pushover when it comes to profits. Know that reversing a chargeback is something that business owners can accomplish regularly when they have proof that they aren’t at fault. Inventory can’t be unaccounted for if you have a secret set of eyes watching over your place of business and employee negligence can be found out if you have great policies in place.

Utilize Surveillance Cameras

Retail stores and grocers have surveillance cameras set up all over the place to help reduce liability and reduce the threat of theft. It costs money to have video cameras installed in all of the important places at your place of business, but it’s worth it. If you have a stockroom that is not being monitored, you can just assume that your company is being stolen from. Whether you sell digital services or antique heirlooms, anything that employees don’t think will be accounted for is likely to translate into a business loss.

Maintain a Good Relationship with Your Business Bank

Businesses don’t want to deal with chargebacks because it can reflect badly on their company names. If a customer initiates a chargeback, it is thought that the process was started because the business was uncooperative. Unfortunately, there are just some people who like to get stuff for free. New companies emerge regularly offering services that can’t yet be categorized as well as products that are not quite definable. If you have a high risk merchant account for credit card processing, having too many chargebacks might stop your startup from being able to take credit card payments from customers in the future. Work with the main contact you have at your business bank to help resolve chargebacks, and reverse them when it is apparent that the initiator is in the wrong.

Check Your Accounts Payable and Receivable Often

Startup company owners also have a habit of seeing that they have many accounts receivable and spending the money on expenses before it clears their account. If you have lots of money due to you via outstanding invoices, it is a good sign that you’re working hard to get new customers. As the saying goes, don’t count your chickens before they hatch. Going over your profit and expense sheets over and over again will prevent you from getting buried in business losses.

Business will be slow, then it will be never-ending, and it is the duty of the company proprietor to be able to maintain a steady rhythm throughout it all. At the first sign that your business expenses are exceeding your profits, look at where the cash hemorrhage is coming from. Your profits won’t always be stellar, but your company losses don’t ever have to be overwhelming.