There is no denying that the pandemic has taken its toll on businesses of all sizes worldwide. According to the Office for National Statistics (ONS), nearly one-third of all UK businesses have less than three months left cash reserves. Therefore, it is more crucial than ever to prevent your business from losing money and keep it afloat. If you want to know more about averting enterprise financial loss, consider the points below.
Provide outstanding customer service
According to the 2017 Ombudsman Services report, UK businesses lose about £37 billion annually due to poor customer service. Customers are the lifeblood of business, and without them, your company will cease to exist. Therefore, it is crucial to offer outstanding customer service that satisfies your clients, reducing the likelihood of spending their cash elsewhere. Luckily, losing clients due to poor service is always avoidable and redeemable, so you can simply look at aspects of your client interactions to see what you can improve. For instance, you can record customer calls to see how your receptionists and sales staff interact with clients and pinpoint what they can do better. Also, outline your customer service expectations from the beginning, and train your team to be highly responsive to customer needs so you can impress your clients easily.
It is no secret that insurance is a popular and potent way to protect individuals and businesses from losses. Fortunately, there are numerous types of insurance you can take out to protect your business in diverse ways. Therefore it is prudent to think about which option will be the most valuable and appropriate for your business type. However, a great employer’s liability insurance policy is a no brainer to keep your business from financial losses. It isn’t uncommon for employees to take legal action against companies, and you may have to pay out hefty compensations if they have top-notch legal representation. Therefore, this policy is worth having to help you pay your legal costs if an employee sues over a work injury or illness and wins, preventing financial loss to your company.
Invest in your staff
For a company losing money, it may appear counterintuitive to spend more. However, the long-term advantages of investing in your workforce far outweigh any short-term costs you may incur. For instance, investing in employee training, paying more money for highly qualified staff, and outsourcing your recruitment to a professional service can drastically improve your staff’s quality and productivity, saving you money. Also, prioritise investing in improving your team’s skills to lower employee turnover. Hiring and training new staff is more costly than providing better support and benefits to existing employees, so upgrading your workers’ skills is a sure way to reduce turnover and avoid wasting money.
Get your pricing right
Overcharging your products and services is a bad idea because it will drive customers away. However, undercharging will drain your profits in the long run, so it is essential to get your pricing right to avoid any losses. You can set prices based on cost and how much your competitors charge. However, do not shy away from pricing based on quality because patrons are often more than willing to pay more for top-notch products and services.