Business shortage and how to avoid it.

[btaliat]

Business shortage to a layman may mean inability of a business owner not to break even. That is, when the loss occurs, the percentage of loss is greater than the profit.


There are so many reasons for this ugly situation. It is ugly because not all business owners prepare for business shortage which hereby make them prone to the deadlier hand of this monster.


Satisfying more customers at a time. A business owner should know the time to expand his business. But the one that has not yet expanded his business needs not to be stranding to different customers at the same time to prevent shortage. Those customers may internationally rush the sellers hereby miscalculate balance for his customers.


There should be minimum freebies. It is always good to make our customers happy by giving them incentives at least to make them feel special. However, we should be cautious while doing this. We should try to balance both the debit and the credit sides of our business to determine our profit before we even venture into freebies to avoid shortage.


For thos that use POS as their mode of receiving payment, there should be need to confirm a bank transaction before allowing a customer to go. There are times, the buyer uses fake credit alert or the bank even bounce bank some money for some reasons. So until a bank transaction is confirmed, a buyer should not be allowed to leave the spot.


In conclusion, we need to be very vigilant and cautious while doing business in order to maximize our gain and reduce our tendency of running into loss.

 

[Mataracy]

Shortage in business means running business at loss .
Business must put things in to right place so that it will not run at lost.
Some times people will just enter in to business because their friend is doing it which is very wrong.

 

[btaliat]

Shortage in business means running business at loss .
Business must put things in to right place so that it will not run at lost.
Some times people will just enter in to business because their friend is doing it which is very wrong.

That's one of the reason I didn't mention as well. Some people fail in carrying our feasibility studies or even tried to do some underground research before embarking on a particular business. They are only there because of the money involved. This may cause business shortage

 

[Samuel72]

For you to avoid shortage in business you need to supervise your worker very well and also you need professional workers because sometimes workers are responsible for the shortage in business. You also need a good strategy in your business so as to prevent shortage in the business and you need to schedule your means of production so you don't produce too many products because this can also lead to shortage

 

[Dora Wi]

Apart from what you have written, I think it is also important to review how you are doing certain things - are you making the most out of marketing (you should focus on defining and reaching your target audience), are your services fully in tune with the area and the circumstances (for example, social distancing made a big difference in the profitability of different businesses, and other things can also change related to the economy or people's preferences)...

 

[Sotherefore]

What do you must understand is that a business is a business and you must take all your business seriously and you should never give credit to people who do not have money to buy a particular product, and beside make sure you put a price tag on a particular products and don't don't be over caring that you keep underpricing your product.

 

[Chibson]

Smartness is very important in business. If you are a businessman or woman, you need to be smart enough so that you can know when the business is not flowing well in order to make necessary adjustments so that the business will not fold. Some businesses people do not know when their business is going down, before they know it, they're out of business.

 

[Alexandoy]

If you mean by business shortage is the shortage in profit then the owner should check his business particularly the operation. Sometimes it is just a matter of pricing that the mark-up for the products that you sell is too low. If the delivery is costly then the profit will be smaller. There are many reasons for incurring losses and it needs a thorough evaluation.

 

[Mika]

It might takes years before your business reached break even point. Until then you will be running your business in total loss. If you do not have enough funds to manage the business until it starts generating profits, your business will fail. In order to avoid this you will have to bring new investments from new investors or bring new partners.

 

[btaliat]

It might takes years before your business reached break even point. Until then you will be running your business in total loss. If you do not have enough funds to manage the business until it starts generating profits, your business will fail. In order to avoid this you will have to bring new investments from new investors or bring new partners.

I don't support your assertion, that does not mean you are wrong though. I have seen people raising their business from scratch to the top without inviting any investors. They only made use of what they have and it worked for them. Dedication matters a lot when it comes to starting a business. With this, no business can fail.