It's been a tough few years but hey, let’s celebrate that you're still in business, many aren't. But will you still be successfully trading at year end?
You'll have made cuts to survive in the past; staff and overheads but now that the economy is looking up you'll be able to spend again. At least that's what you're thinking.
But wait, why would you want to add more costs to your business now? I’m sure that you see expansion on the horizon, lots of new clients spending more money, so all will be well. If those new clients do sign on the dotted line, all will be well again will be on our way. Already I can hear you saying you need more staff, space etc.
Stop. I want you to make some more cuts and first on the list are those bad clients. The ones that lose you money every day. In my recent post Are the Right Clients Getting Your Attention I described how and why you need to sack the bad clients.
Right now is the best time to review your client list and cut those bad clients loose. Yes you will forfeit some income but you'll be saving money, making more profit as well as finding time to find more of the best clients. Those ‘bad clients’ sap your energy, use up resources, frustrate everyone and if you add up all of the extra work they cause you, you won’t be making any money at all. In fact you are undoubtedly paying them to do business with you!
Now that you had cut your unprofitable, late paying, time wasting clients you won't need as many staff, as much office space, laptops et cetera. If you don't make these cuts you’ll have under-employed staff twiddling their thumbs so make this cut now and you’ll see savings going straight to your bottom line.
You can achieve a double whammy; increased profits and money saved by not servicing your unprofitable clients. You’ll take advantage of opportunities to make more money by finding new better, profitable clients. Above all everyone will be happier, able to concentrate on looking after your very best clients and focus on attracting new liked-minded clients to your business.
Now your business can start to ride the upturn wave with more confidence, and more money in the bank.
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