Tips to Minimizing Profit Loss
You’ve always dreamed of a business of your own, and now the dream is coming true. The business plan is in place, and you’ve found an available storefront on a refurbished corner downtown. To get started, you’ve taken out a few small business loans, and you want to invest the money wisely, maximizing profit and minimizing loss. As the ribbon-cutting ceremony gets closer, set yourself up for success with a few simple tips.
Get to know the corner your business occupies. Introduce yourself to the neighbors. Listen to their stories. Show genuine interest in their lives and the businesses they run. Building lasting relationships with neighboring entrepreneurs will establish your place in the city’s landscape.
Beyond contributing to your branding, those relationships will add to the safety of the downtown corner. Neighbors looking out for neighbors—in suburbs or city streets—enhances the security of the neighborhood; for a small business owner, that security alone reduces potential loss. Take the time to invest in relationships. If you do, you’ll be able to save the funds from your small business loans for other costlier endeavors.
While strong relationships protect your business in intangible ways, careful design visibly prevents loss. Thoughtfully laying out the aisles and the register as well as their proximity to one another and to the door can proactively address problems before they arise. Your managers should have an unobstructed view of all areas at all times. Would-be thieves can be thwarted simply by recognizing they cannot hide from a watchful employee’s eyes; a carefully designed layout guarantees fuller visibility, which creates fewer avenues for loss.
Investing in an open store layout is a perfect “costlier endeavor” that small business loans can help you afford. While you’re investing those funds, other design elements can be incorporated as well. Spend the extra it takes to purchase a top-of-the-line point of sale (POS) system that’s password protected and integrated with the cash drawer. Install security cameras as well. While cameras may seem a bit old-fashioned in a trendier world of smartphones and smart POS systems, the prospect of video recording still threatens potential shoplifters. These simple investments in initial design can pay rich dividends in keeping profit margins up and losses down.
Reap the Rewards
Using small business loans to get your business up and running requires wise investment of those funds. Investing in thoughtful design and layout up front prevents losses over time.
Lasting relationships also prevent losses. Neighboring business owners will likely be the ones who show up for your ribbon cutting. Get to know them early on, and you’re likely to keep them in your corner for the long haul.