3 Reasons You’re Not Making Business Profits and How to Avoid Them

Many business owners fail because of dwindling profits. Don’t let this put you off your business completely. You must get organized, keep track of your income and expenses, and price your products and services for profit. Below are 3 common reasons why you’re not making business profits and how to avoid them. Weigh your options carefully before launching your business. Don’t settle for low profits – instead, keep on pursuing your dreams.

Pricing strategy

Many business owners struggle with pricing. The problem is that it’s hard to figure out how much to mark up a product without considering demand and competition. The right markup percentage depends on many factors, including the type of product, market, economy, and competition. Ultimately, you should base your pricing strategy on the value of the product to the customer. Understanding this will help you set an appropriate price and determine the right marketing strategy.

Before setting a price, you should conduct research to determine how much your products or services are worth. This research can range from casual conversations with friends to formal surveys of potential buyers. In some cases, research is already done when developing a business plan. In other cases, the government may set a price range for a product or service. It’s important to remember that high prices lead to lower sales.


There are some cases when saving money for major purchases makes sense. It allows for rapid discounts and rebates. However, there are also times when saving for major purchases has a negative impact on working capital and your business’ ability to meet short-term obligations. To prevent these problems, it’s crucial to have a balanced savings strategy. Listed below are three common reasons why your business isn’t making profits.


The world’s tax system is rigged to favour super-rich individuals and powerful corporations at the expense of the poor. Today, the global economy has nearly quadrupled over the past thirty years, reaching $78 trillion in 2017. The rich have more money than the rest of the world combined, and the gap between rich and poor is widening. Tax havens help the rich avoid paying their fair share.

If you want to save more money for retirement, buy a house, and pay less tax, you should avoid evading taxes. Tax avoidance is legal, whereas tax evasion is illegal. Legislators use the Internal Revenue Code to influence citizens’ behaviors to encourage retirement saving, higher education, and other important national goals. Tax avoidance is a viable method to help your business run smoothly.