Emmanuel hi. There are a lot of possible causes why a business is not profitable. You have to carefully evaluate your business plan in all its areas (marketing, financial, management/personnel, product/service, and so on). Perhaps the business has issues related to customers, niche market, pricing, marketing, competition, location, absence in internet, a mix of reasons, or something else. The following link will mention some of those causes, such as pitfalls you should avoid, lack of right planning, sales shortcomings, managers not doing well their work, financial complexities. The list is not exhaustive but will provide you a good starting point and a sense of direction for the mentioned self-evaluation. I wish you success. --- https://small-business-success-wnc.com/business-failure-checklist-for-small-business-owners
Report Miguel 's answer
Pls, be specific with the business niche you invested in.
Let's see how we can trace the factors that cause the not too good profitability...
Report Wisdom's answer
For the most part, your ability to generate a profit is dependent upon your ability to move and sell to customers. If you truly believe that you have done everything possible to sell and reach potential customers in every way possible; but they are still not buying what you are selling, then this is a confirmation that there is no real demand for what you are selling. You most likely need to change what you are delivering to the marketplace. There is something wrong with your value proposition.
Remember, it is the customer or marketplace that is the ultimate decider of what you should be selling and how you should be delivering your product or service. You have to pay attention to what the customer is demanding and wanting from the business. If you can some how deliver it better with more value compared to other competing products, then you should be able to establish some share of the market and earn a profit.
Unfortunately, most people who run a business will not be able to raise the price for their products since the market or customer is highly sensitive to price – they will usually buy the cheapest priced product. Therefore, you have to raise the perception of value to the customer. It pays to be different in some way compared to everyone else. This can include more choices in terms of design, size, color. It can include more features or choices in how the customer can use the product. In my opinion, this is the best way to get to profitability – deliver more “value” to customers compared to the competing products or services.
If you try and compete on price, someone will always undercut you in which case your only choice is to outsell them in terms of volume (quantity). This becomes increasingly difficult unless you can expand your capacity to produce and deliver. This is why I usually recommend business owners focus on creating as much value for the customer as you possibly can. You want to leave a strong impression in the mind of the customer that what you are offering is better – superior quality, more potent solution, increased functionality, nicer user experience, beautiful design, etc. This is where I would start if I want to make sure I can earn a profit in a competitive marketplace. Good luck.