Business Activity| How to Minimize Losses in Business- By@solexybaba |10% payout to the community account

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Hello to everyone in this great community known as the business activity I welcome you all to a great week and I hope we all are in good health. I have noticed that most business individuals especially in my community do not understand the mystery behind Profit and loss in business as though they only rely on the profits not paying attention or minding the loss aspect, so today I decided to share with us all the on that note and also to give us some tips on how to minimize the loss in business. I believe by the end of this publication, we will understand the meaning of profit and loss in business, and alongside we will know how to limit the loss aspect in business. sit tight and relax as I drop my entry.

Business individuals need to know the meaning of profit and loss in business. most people just go into business without proper orientation and that is why most businesses do shut down in a few whiles. knowing the profit and loss principle is quite important.

Just as the cryptocurrencies experience loss and profit, businesses also have these attributes but we as business individuals only know the profit aspect, we are only ready to make a profit but not a loss. so today I want to unveil it to us all that there are often losses in business, the only thing you as a business person can do is to get the idea on how to limit losses in your business.

WHAT IS PROFIT IN BUSINESS?

Profits in business are simply the making of gains from goods sold to customers. this is the aspect of getting more money in return after selling some items from your store. for example, you purchased an item at 40 steem and then you sold it off at 45 steem, that is to say, you have made a profit of 5 steem on that item sold.

Profits are so exciting in business, that it boosts the energy and vibe of the business owner to increase his or her effort towards the business. the purpose of running a business is to make more money known as profits or gains. it is a problem sited and as a business individual you choose to solve that problem and then make money from solving such problem, and as such you do not just solve the problem sited in a community but as well you have solved your financial problem in this way, you make more money from the items you sell. and this is done when you get goods at certain rates and then you bring them down to your store to sell them at a higher rate, which is more than the price you purchased them initially.

It does not matter how much more you sell the item, in as much as it is higher than the initial price you purchased it, it is regarded as profit, be it you got the item at 30 steem price and you sold it out at 31 steem price, it is regarded as a profit in business. so in a not shell be it a priced tagged business or a price auction business, provided that the goods are sold higher than the amount you purchased it, it is all tagged profit.

WHAT IS LOSS IN BUSINESS?

Loss in business can simply be seen as a situation whereby a trader purchased an item, and then the item remains with no one coming for it. at that point, the item stayed for a long period, and at the end of the day, we tend to make use of the items when it has gotten to the point when they can not be purchased by any customer.

Loss is inevitable in business and we get to experience it just like in the crypto world the only difference is that businesses are not as volatile as cryptocurrency. I do get goods and then at the end of the day, I do not get to sell all those goods reason because, not all goods are liked by the customers, also it depends on the kind of business. but certainly, all businesses do experience loss no matter how hard they try not to. a restaurant business makes losses too, in the case of making various dishes and it is not all the time one gets to sell those dishes completely, there are times that at the end of the day, one will be left with a certain amount of food without a buyer. so making losses are seen in all business.

We can not stop loss from happening as though it is almost inevitable but there are efforts we can make for us to be able to minimize losses. with this, we can strike a balance between profit and loss in business. in as much as one is rendering services or selling products to make gains then there are tendencies to make losses too. it is seen in all businesses, industries, companies, and others.

Limiting the scenario of making losses in business is important and with that, there can be an equilibrium between making profits and losses in business. now let us see how we can be able to minimize the loss in business.

HOW TO MINIMIZE LOSS IN BUSINESS

In as much as we have noticed that losses are inevitable in business, there is a need for a strategic plan in limiting losses in business. this is done in other to lower the loss incurred in businesses, as though a business owner gets to see his or her capital coming back, rather than looking at the whole capital vanishing in thin air. there is some way in which we can reduce the level of losses in our business and I will be highlighting a few of the various steps below.

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Know your main customers that patronize your goods

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To minimize certain losses in business, it is expected that as a business owner, you need to get certain customers that you know no matter, they will always come by to get the expected goods. with things comes comfort that even though you do no get customers who rarely come to get items from your store, certain customers are likely to come and get goods from your store.

It is important to know your main customers, this will guide you on the items you are expected to get, and with this, you know that at the end of the day, these customers will always come by to get the needed items. so getting basic items that are needed by your main customers is always recommended as though this will help you to know the right type f goods you are expected to get.

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Do not add excess profits to your items

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This is another important aspect as business owners should consider, most especially businesses with price tags. price tags are good, but then it tells the customers that the prices are not negotiable and as such when a customer noticed that the price on an item is higher than expected, the customer tends to bypass such an item and move on. with this that goods may likely not be checked again by other customers and when it stays for a long time depending on the item, the good may experience bad condition or probably lose value, and as such the business owner have no choice rather but to lease it off. so to avoid such a scenario, we must lower our take profits in certain goods as though this will enable us to sell those goods in no time and as well create room for restocking.

With this, losses in business are reduced a though we get to take little profit to sell off our goods in other to avoid certain eventualities.

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Price auction in business

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Instead of allowing certain goods that are not often needed by customers as a result of worn-out or low-quality scenarios, it is recommended that we auction those goods out, as though to get our capital back rather than making a total loss. price auction involves a business owner, bringing out some outdating goods in his or her store and then calling on the society to come and get these goods via price auction.

In price auction, the highest price bidder gets to go home with the goods in question, and with that, we as the business individuals will tend to minimize loss and then get our capital back regarding the goods that have been auctioned out.

CONCLUSION

If the above information regarding how to minimize losses in businesses, we will get to see that our business will be on the move and it will strike a balance in making a profit. for a business to move on in an uptrend, the profit and loss management need to be kept in check in all ways. being lenient in the setting of your price is very vital as though it helps to bring customers to you rather than scaring them off with a strict price.

Oftentimes, we create room for losses because of our high appetite for profit, and that is a bad habit as a business professional. there should be a strike in balance, we should lower our take profits if at all we want to keep our customers intact.

Thank you all for reading through, I believe this has been beneficial to you. see you next time. Greetings!

MY BUSINESS DETAILS

Business name:	Xclusive Concept
Owner's name:	@solexybaba
Business address:	Zaria, Kaduna state, Nigeria.
About us:	Link to presentation. link