There are a lot of reasons for potentially lost revenue. Economic shifts and changes, poor client retention, poor sales team, or even a product or service that doesn’t provide the right solutions to the right problems. What impact does that have on your business and your bottom line?
It sounds pretty cut and dry. Lost revenue means the business isn’t growing, profits aren’t there, and everyone is unhappy. But there are both direct and indirect costs to how lost revenue affects your business.
Direct costs have to do with struggles to pay for things like your lease, insurance coverage, office equipment, and salaries. Indirect costs, however, can hurt even more with things like lost productivity amongst your staff, dissatisfaction in your work, new hiring costs for potential lost employees, or an overall bad reputation. Those are pieces that are harder to overcome, as they can have a longer lasting effect on your business. You cannot afford to take on these types of lost revenue, not to mention losing clients over it, to thrive.
The bottom line is that lost revenue means lower profits and poor cash flow. That impacts every aspect of your business. So what can you do about it?