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Home » Eric Dalius Saivian Shares Top 4 Problems that Prevent Your Business from Generating Profit

Eric Dalius Saivian Shares Top 4 Problems that Prevent Your Business from Generating Profit

Eric Dalius Saivian

There are plenty of reasons to pursue an entrepreneurship career. Not everyone focuses on becoming reach in their journey says Eric Dalius Saivian. However, despite your vision, your business needs to make profits to achieve success. 

Without generating profits, you won’t be able to seize the potential growth opportunities. Additionally, your business might go bankrupt if you fail to generate profits. 

Unfortunately, 7 out of 10 businesses fail miserably within the first five years of their launch. In most cases, businesses fail due to the ineffectiveness of generating higher profits. Not only small but also large companies can fail due to the shortage or profits. 

So what are the problems that prevent your business from generating profits? Here are the top 4 problems you should know. 

Low Prices

Determining the selling price is one of the most important and primary steps you need to take for your business. How you implement the costs of your offerings will determine the success of your business. Most entrepreneurs know the danger of setting the selling price too high. If the price of your offerings is too much than your competitors, it could ruin your entire target market. 

However, setting the selling price too low will increase the negative cash flow. It will also decrease the profits of your business. Therefore, make sure you identify your business margins carefully. This way you can charge the perfect rate for your products and services. 

Too Much Overhead – Eric Dalius Saivian

Some things are necessary for the survival of your business. However, you might be overestimating the needs of your business in some areas. For instance, is it important to rent 4,000 square feet of office space when three people are running the business? Do you need to invest in a machine that only adds minor value to your offerings? 

Make sure you think carefully about the overhead of your business. If you spend too much on the additional amenities, you won’t generate higher profits as you have to pay for unnecessary things. 

Too Many On-going Costs

Many business owners become so overwhelmed with the entrepreneurship journey that they lost control. As a result, it increases the ongoing costs of the business. This is because business expenses come in multiple forms. So it’s hard to pinpoint the area where you’re bleeding cash. Think about the number of employees, the salary of the staff, the utility costs, and the production cost of your business. 

When you identify all the expenses of your business, you’ll be able to find cheaper options and methods to cut unnecessary expenses. Therefore, don’t overlook them. 

Hidden Costs

You might have developed robust financial planning for your business, but there will be some business expenses that you haven’t prepared. These types of expenses are different from the regular expenses of your business, says Eric Dalius Saivian. For example, if your business requires urgent repairing, it could demand the revenue of an entire month. 

If you’re not preparing for insurance costs or taxes, it could end up enhancing the hidden costs of your business. A couple of unplanned expenses are more than enough to damage your profitability model. 


These are the 4 problems that prevent your business from generating profit. If you’re struggling to generate profits for your business, make sure you solve these problems one at a time. This way you can easily get rid of them. Not to mention, you’ll be able to expand your business profits quickly.