Some days it’s easier to stay positive than others. For instance, those days when you land a big new customer or finally bring on board that key new hire. But there are other days when it’s really tough to keep that positive outlook. Simply flip the scenarios mentioned before where instead of landing a big new customer you instead lose a customer that makes up 25% of your business. Or that key employee gives you two weeks notice.
We usually get a deer in the headlights response from our clients when they first hear us talk about how boring business can get when it’s running well. That deer in headlights look comes because most folks can’t relate to being bored with their business. Usually they have more colorful (and painful) words to describe how they feel about their business. Things like frustrated, excited, overwhelmed, exhausted. It’s rare that you meet a business owner who describes themselves as being bored.
Few things are more strategic when it comes to the success of your company than setting your selling price. Yet we find that most small business owners take an overly simplistic approach to their selling price. It might sound something like, “What’s the competition charge?” Or “What will the market bear?”. While these might be good starting points when you first launch your business, chances are you will be leaving profit on the table, or worse losing money on some of your products or services.
One of the most common questions we hear from business has to do with paying their people. More specifically with how to pay their people. What most owners are really asking here is how do I structure a compensation plan that is going to properly incentivize my team to maximize profits for our business.
Believe it or not, we’re almost six months into this COVID-19 pandemic. Needless to say, we’ve all absorbed a lot of changes over that time and more changes and adjustments are coming. Hopefully one of the nice side benefits of this current pandemic is that it’s making you more comfortable with making changes and trying new things.
At some point during your business life cycle, either you or someone else will ask you this question, “What’s my business worth?” The quick answer is it depends! It depends on a lot of factors. Some of these factors are things you can control while others are out of your control. For instance, you have some control over how you set your selling prices and control your costs, but you can’t control the overall industry growth or how your competitors act.