The business model was a simple one based on his hourly rate charge and we had explored lots of other options. He had been doing a lot of discount voucher work over the last 3 years and according to his own estimates if he raised his prices by 30% he would lose around half of his business - it is no co-incidence that this represented the time he wished to save!
Based on the analysis our client's income would not have significantly reduced either to achieve that outcome because the price driven clients were not profitable for him anyway.
Changes in your business are scary at the best of times. When that change is a deliberate strategy to actually reduce your customer base the decision becomes even more scary.
WHAT DO YOU THINK HE DID? THE ANSWER MAY SURPRISE YOU.
What actually happened was a phone call that went something like this:
"Bevan. it's (let's call him Bob) Bob here. Look I have been thinking about what you said and I just don't think you are the accountant for me. I have been to see a friend of mine and he has put me on to his brother who is a business coach. He thinks we can double my business over the next year and I can then have the spare money I need to take my family away on the holiday I have been promising them".
Change can be daunting I agree but for 3 years in a row Bob was pulling his hair out wanting to work less hours. Not once did he suggest he wanted to work extra hours or make more money. He actually said he was happy with his income and I believe that was indeed the case. I have asked myself why Bob made the decision he did and have developed all sorts of theories that I won't go into here. At the end of the day though it comes down to two things:
1. Being honest with what you want to achieve; and
2. Having the courage to make the changes to achieve those goals.
As a post script to this story the business closed down a couple of months later.
Complete Business Strategies strive to provide pro-active solutions to help our clients achieve their goals. If you think this is the sort of advice you wish to receive then drop me a line or give me a call. Please call us right now on 07 5439 1600 to talk about your options and don't be the next newspaper headline.