How to prevent profit loss in Business?

Different businesses use variety of strategies to increase profit and minimize loss. The
strategies are based upon the provided business capital, partnership, weaknesses and  strengths.
Regardless of what techniques a company applies and how much time and money it invests,
sometimes it faces the loss and that with critically demolishes the company's positions which is a
bit difficult to regain.

There are following important clues that help a lot to reduce business loss. They are applied to
business of almost every size and nature.

1. Add the variety new and innovative products and services in your company. It will reduce the
customer's monotony and they will feel enthusiastic in practising new stuff. It will keep
customers coming back to your shop to get exciting products. It is quite essential to consider that
the demand and wish of the people must be considered seriously when launching a new product
or innovating an old one. It brings a confirmed profit and chances of business loss is minimized.

2. Make use of modern technology that exclusively saves time, money and energy. Using a new
piece of technology brings the amazing and wonderful outcomes and the users often regret over
the past that why they were unaware of such an advantageous stuff. For example you can replace
the manual register system by computerized systems, digital cash counting system, computer
databases instead of manual records etc.

3. Apply low price strategies. Customers come with different pocket size as some can afford a
particular product and some cannot. When customers can get their desired products with all the
same characteristics and functions at very low rates, they prefer using them. competitive prices,
companies catering to these customers may adopt the low-price strategy. It is observed that the
demand for such product is very large as compared to high priced services so when a huge
number of customers buy this stuff, the overall profit is enormous.

4. Optimize your website in an attractive way. Search engine optimization is a very helpful tool
to increase traffic of users to view your product brand and get the related information. For
example get your website optimized only for the simplest and fewer keywords which have high
number of searches. A smart web promotion is a magical way to multiply your profit.

5. Treat your business a business, not as a hobby or a side job. Stay quite focused and keen about
the working plan that you are following to run profitable business. If that plan is for example not
working, immediately change it with a superior one. Keep a strict check and balance over the
input and output if the business.
 Keeping a business 100% profitable is a daunting task no doubt as it requires a great deal of
time, investment, energy and a number of professionals but when it returns with a huge profit
and good name amongst the business competitors, it makes your company really exemplary.

What is the break even in business?

To be profitable in business, it is important to know what your break-even point is. Your
break-even point is the point at which total revenue equals total costs or expenses. At this point
there is no profit or loss — in other words, you 'break even'.

Why is break even important?

Break-even analysis is an important aspect of a good business plan, since it helps the
business determine the cost structures, and the number of units that need to be sold in order to
cover the cost or make a profit

Calculating your break-even point

1. To calculate a break-even point based on units: Divide fixed costs by the revenue per unit
minus the variable cost per unit. ...
2. When determining a break-even point based on sales dollars: Divide the fixed costs by the
contribution margin.