Every business is seeking a few things in common, usually pretty basic things that can make any business more profitable. These things are general, like efficiency, higher productivity, and lower costs. But another item that every business should be thinking about to make the business stronger is spillage. Every time that you waste money, product, or work in pursuit of something that doesn’t return its investment, you are creating a spillage. Spillage is a normal part of business, but limiting it is essential to protecting your bottom line. Here are three types of spillage your business needs to think about to improve.
The first, and most common, type of spillage that your business needs to think about is wasted material spillage. Any materials that your business purchases and pays for that ends up thrown away or unused is spillage. If you work in manufacturing, the biggest way to avoid this kind of spillage is to find ways to use scrap material and excess material that is removed during production. Being able to repurpose these materials can save you tons of money every month and make your spending more efficient.
Another major type of spillage that your business needs to think about, and combat is shipping damages. If your business is involved in shipping at all, there is a risk that you may lose some product or material in shipping due to damage or loss. The best way to protect against this is with insurance protections. Truck hauling companies carry insurance, but you can always add more as needed. If you are shipping expensive materials or products, you should always have a strong insurance policy so that your business will be reimbursed for damaged goods. Shipping without insurance is a major risk that your business should not be taking.
Less conventional than the other items on the list – but a major culprit of spillage nevertheless – is your marketing. When you are marketing your business, any approach that doesn’t carefully single out your target audience is spilling. Any money you spend to show an ad to a person who has no interest in your business is money wasted. The only way to avoid this is to work carefully on identifying your target audience and how best to reach them. Focus on increasing your returns on marketing and bolster campaigns that get the most sales per dollar.
Spillage in business can lead to thousands of dollars in lost revenue and profit. Knowing how to avoid this spillage is essential to strengthening your business. If you are monitoring these three areas of your business for spillage, you are already leagues ahead of your competition.
Check out this article on how to get customers to choose your brand!