Why Your Small Business Isn’t Profitable (and What to Do About It)
Running a small business is hard. You’re working long hours, juggling clients, employees, and bills—and yet, somehow, the profits never seem to match the effort. If this sounds familiar, you’re not alone.
Many business owners I talk to in Edmonton and across Alberta feel the same frustration: they’re busy, but the numbers on their bank statements aren’t reflecting it. So why does this happen?
Why profits can stall
There are a few common reasons small businesses struggle to make money, and often it’s not just one thing:
- Pricing too low – You might be undervaluing your services or products, or giving discounts just to keep clients happy. In the short term, it works—but it eats into your profits.
- Unnoticed expenses – Small, recurring costs add up fast. Sometimes it’s subscriptions, sometimes it’s just daily habits that drain money without giving a return.
- Not tracking profits properly – If you only look at revenue, it’s easy to think you’re doing okay. But if costs aren’t tracked closely, profit can quietly disappear.
- Working on the wrong clients or projects – Not all revenue is created equal. Spending time on one-off, low-margin work can feel productive but may not actually grow your business.
The tricky part? Most business owners don’t know which of these issues is hitting their bottom line the hardest. That’s where taking a step back really helps.
Cash flow is king
Even if you’re making sales, poor cash flow can make your business feel unprofitable. Late invoices, unexpected expenses, or seasonal slumps can all leave you scrambling.
A simple step like tracking your cash flow—even on a basic spreadsheet—can change the game. You’ll start to see exactly where money is coming in and going out, and where the leaks are.
Simple ways to start fixing it
Here are a few small steps that can make a real difference:
- Check your pricing – Are you charging enough for the value you provide? Compare with similar businesses in Edmonton or Alberta.
- Cut unnecessary costs – Look at every expense and ask, “Is this helping my business grow?”
- Focus on high-value clients – Stop spending so much energy chasing clients who aren’t profitable.
- Track profits, not just revenue – Even a simple monthly report can highlight where your money is going and help you make smarter decisions.
Even implementing one or two of these steps can start changing your numbers and reduce the stress of running your business.
Still feeling stuck?
Running a business can feel like being pulled in a hundred directions at once, and it’s not always clear which problem to tackle first. Maybe it’s pricing, maybe cash flow, or maybe there’s more than one thing quietly holding your business back.
That’s exactly why I started working with business owners—to help them take a step back, see the full picture, and give them the tools to figure out which problem to solve first.
If you’re ready to get clarity and start making practical changes that actually move the needle, book a free discovery call and we’ll talk through your business challenges together.