I just met with a business owner whose business offers multiple services and he shared with me his goals to focus on growth for 2020. The first question I asked him was which services he was going to focus on growing and why. His answer was, all of them. My second question was if he could share with me which services were the most profitable and he couldn’t answer it. My immediate concern was that he was probably going to experience the most growth in the service that was the least profitable. Doesn’t it seem smarter to focus on the services in which you’re making the most profits?
I then met with another client who shared with me that although they completed the services they did on a consistent basis that their method of billing was to tally up each service they completed for each client each month and then create invoices for each and mail them out. When I hit them with, “How much time would you save if you just put them all on a recurring monthly plan with an automatic payment deducted from their credit card or bank account the first of the month?” I could see the wheels spinning between their ears. Even more so when they realized that this would also reduce their collections problems. Although it may create some challenges in signing up new clients doesn’t it seem a lot smarter to sign them up this way?
The third one I want to share this week was when the subject of pricing was presented with another client. I asked them simply, “Why do you charge what you do?”. Their answer was the same one I almost always here, “the going rate for my industry”. When I responded with the question “Can you achieve your goals charging this amount?” I got that same deer in the headlights look I so often get. Wouldn’t it be smarter to set your goals and work them backward to see what you need to charge in order to achieve them?
I can tell that each of these clients and many others that I speak to are very hard workers. I want to help them be even more successful while not having to work so hard. So, do you want to work smarter or harder?