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Finance Question: How To Deal With Inconsistent Profit Gains?
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[QUOTE="Holicent, post: 268785, member: 76163"] As a small business owner, you should be aware of the fact that sales and profit are not always consistent. In fact, they can fluctuate wildly depending on what's going on in your business. Sales are often unpredictable. This can be due to seasonal trends, changes in consumer spending patterns, weather conditions or other factors that impact your customers' purchasing habits. Inconsistent profit margins can occur for several reasons: Your sales may be less than expected (low demand). You may have overspent on marketing and promotion costs that didn't result in increased sales. Or maybe you spent too much time and effort perfecting your product or service, but didn't sell enough of it to make up for all that time spent creating it. Your expenses may have increased faster than anticipated (high demand). The cost of doing business is never constant; it depends on many factors including employee growth and hiring new employees, operational costs such as rent and utilities, equipment purchases, supplies etc.. [/QUOTE]
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Finance Question: How To Deal With Inconsistent Profit Gains?
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