What are the 7 profit pitfalls that are real killers for your consultancy business?
Today, we’ll explore key talking points like over-reliance on a single client, neglecting recurring expenses, mispricing services, inefficient client acquisition, scope creep without compensation, inefficient financial management, and the avalanche of taxes.
Listen to the full episode to gain valuable insight into the profit pitfalls that could be impacting the success of your consulting or training business.
By the end of this episode, you’ll walk away with a deep understanding of these seven deadly sins and the tools to safeguard your earnings as a self-employed consultant or business owner. So buckle up, take notes, and get ready for an eye-opening discussion.
Let’s dive into the world of self-employed success and conquer the seven deadly sins that can wipe out your earnings as a Self-Employed Consultant. 🤗
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Over reliance on a single client can make your profits really vulnerable.Mark Garrett Hayes – 7 Profit Pitfalls in Your Consultancy Business
What are the major pitfalls that wipe out your earnings?
“The reason that consulting or training coaching can be a fragile business is because of three key reasons.
Firstly, there is lots of competition out there which leads to price pressures and lower profit margins.
Secondly, there is a lot of uncertainty in what we do.
This is because often there are complexities or uncertainties in projects which impact profitability.
Thirdly our business is time-based billing. Many of us often build clients based on the hours or the project duration. And when project scopes change, there is an impact on profit margins.
This might require more resources than anticipated, which of course leads to lower profitability.
These are all pitfalls that can wipe out your earnings.“
There are significant consequences for mispricing your services.Mark Garrett Hayes – 7 Profit Pitfalls in Your Consultancy Business.
Are you neglecting recurring expenses?
“This is huge, because these days, many, many pieces of software, whether it’s accounting platforms, marketing, or apps, are very cleverly priced.
They know what they’re doing and how to draw you in to subscribe.
There’s a huge cumulative effect over a 12-month timeframe on your profitability of having subscriptions and expenses unchecked because these expenses are actually killing the numbers.
Do you regularly review your expenses to identify pitfalls?
Because all of these things that you think you need for the business you may not need or may not actually need right now.” ⬅️
Take-aways you do not want to miss 👇
- Key reasons your profit margins are fragile
- Why you need to be diversifying your client base
- Why neglecting recurring expenses is a big profit killer
- The consequences of mispricing your services
- How to choose the best client acquisition method
- Ways to work out your biggest profit pitfalls
- Questions to ask yourself in terms of profitability pitfall expenses
Some resources for you
Small Business Association of America: Some interesting statistics
“The E Myth Revisited” by Michael Gerber: Recommended reading
My LinkedIn: Connect with me
My Book: Sales Coaching Essentials
Check out the episode today!
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