From time to time I get asked the questions “how can I get some time back?”

The question may be related to getting some more FREE time or to get more time to work ON your business.

Either way, from my perspective there is really only one answer to both questions and that is spend less time working on your clients projects.

To achieve this I’s suggest that there are 2 approaches available,

1. Outsource some of your repetitive tasks
2. Sack some clients

I will tackle the first option in a later post but for now I’d like to explain what I mean by “Sack Some Clients”

Every business has a number of “problem” clients, you know, the ones that take up all your time and can sometime be a real pain in the arse, but you believe that you need to keep them to maintain your cashflow.

What if I could show you a way to SACK those clients and still maintain your current income ? Read on……

These suggestions resolves around increasing your prices by a minor percentage, ask yourself this question…..

if you increased you prices by 5% or 10% how many of your current clients would you lose?

In the following example I will show you how many clients you could afford to lose and still maintain your current income.

Let’s assume you have 10 clients each paying you $10,000 per month for you services and you have a margin of 30%, that equates to $10,000 per month with a $3,000 net profit, so if you increase you prices by just 5% your client will be paying $1050.00

Normal Income:

10 clients
$1,000.00 per client
30% margin
$10,00.00 income
$7,000.00 Cost of sale
$3,000.00 net profit

so our target to to maintain the $3,000 net profit ($300 per client)
5% price increase
10 Clients
$1050.00 per client
$10,500 income
$7,000.00 Cost of sale
$3,500.00 net profit

From this example you can afford to lose 1 client and still have an additional $200 in net profit

10% price increase
10 Clients
$1100.00 per client
$11,000 income
$7,000.00 Cost of sale
$4,000.00 net profit

From this example you can afford to lose 3 client and still have an additional $100 in net profit

So you can see from the above example that by making a minor increase in your pricing you can certainly achieve an increase in net profits, no surprises there, but what you do with that additional income will give you the opportunity to get some of your time back.

 

You could:

    1. Use the additional income to outsource some of your repetitive tacks (get your time back)
    1. Sack your problem client (save time not working on their projects)
    1. keep all you existing clients and receive a 15% 0r 30% increase in net profit.
    The next step is up to you