TFL Business Coaching

TFL Business Coaching TFL Business coaching was set up to help you turn your business from being a chore that controls your life to an asset that brings you opportunity and freedom.

27/03/2021

Whenever you start a business, its always best to test your idea on a small scale measure the market appetite. Fortunately there's the trading allowance which can mean you do not need to declare any income from this test.

The trading allowance is a ยฃ1,000 exemption from declaring the income and is applied to self-employment, casual services (such as babysitting or gardening) or hiring personal equipment (such as power tools).

As always check with your accountant, to see if this applies to you.

04/07/2020

๐—ฌ๐—ผ๐˜‚'๐—ฟ๐—ฒ ๐—ป๐—ผ๐˜ ๐—ฐ๐—ผ๐˜‚๐—ป๐˜๐—ถ๐—ป๐—ด ๐—ฟ๐—ถ๐—ด๐—ต๐˜, ๐—ฎ๐—ป๐—ฑ ๐—ถ๐˜'๐˜€ ๐—ธ๐—ถ๐—น๐—น๐—ถ๐—ป๐—ด ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ด๐—ฟ๐—ผ๐˜„๐˜๐—ต.
We all want something from life, we want our business to make more money, to be thinner or just to complete the great north run. But these are all outcomes and if you measure your growth with profit, weight lost or medals earned you're in for a rocky and tough journey.
In this post, I'll explain why calls to new customers, steps walked and hours of planned practise will get you further, faster and avoid the pains of a turbulent trajectory. Let's talk Lead and Lag indicators.

๐—ช๐—ต๐—ฒ๐—ป ๐˜†๐—ผ๐˜‚ ๐—ฟ๐—ผ๐—น๐—น ๐—ผ๐˜ƒ๐—ฒ๐—ฟ ๐—ฎ๐—ป๐—ฑ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ฏ๐—ฒ๐—น๐—น๐˜† ๐—ด๐—ฒ๐˜๐˜€ ๐—ผ๐˜‚๐˜ ๐—ผ๐—ณ ๐—ฏ๐—ฒ๐—ฑ ๐—ฏ๐—ฒ๐—ณ๐—ผ๐—ฟ๐—ฒ ๐˜†๐—ผ๐˜‚ ๐—ฑ๐—ผ.
I've got a problem, lockdown happened and I like cheese. I like blue, strong, smelly cheese (and brie (and crackers (and cider))). So after 8 weeks of lockdown, I had gone from being on the healthier side of average to having the biggest waist I have EVER had in my life!
It's not winter, I don't need to be retaining my heat.
So it was time for action! like all good leaders, I know the way to succeed is to plan, execute, measure & correct. I want to make informed decisions, the worst mistake is to magnificently and efficiently do the wrong thing. To make the right corrections I have to measure the right thing.

When it comes to defeating my spare tyre? I have a few tracking options:
Weight: The thing most people track, liable to fluctuations due to salt intake, stress and hormones. Doesn't differentiate between muscle loss and fat loss.
Waist loss: also liable to fluctuations, has a stronger correlation to being healthy than weight loss.
These are both what we'd call ๐—Ÿ๐—”๐—š indicators: They measure the ๐—ฟ๐—ฒ๐˜€๐˜‚๐—น๐˜๐˜€ of our past actions. These results are not wholly within our control.

Next, I can measure my activity: Not got a strong correlation with weight loss, but is shown to reduce weight gain on bad days.
Nutrition: Your body composition is 80% diet 20% activity.
These are both ๐—Ÿ๐—˜๐—”๐—— indicators, they are ๐—ฎ๐—ฐ๐˜๐—ถ๐—ผ๐—ป๐˜€ I can control every day that will have a very strong correlation with healthy waist loss.

๐Ÿฏ ๐—•๐—ฒ๐—ป๐—ฒ๐—ณ๐—ถ๐˜๐˜€ ๐—ผ๐—ณ ๐—บ๐—ฒ๐—ฎ๐˜€๐˜‚๐—ฟ๐—ถ๐—ป๐—ด ๐—น๐—ฒ๐—ฎ๐—ฑ ๐—ถ๐—ป๐—ฑ๐—ถ๐—ฐ๐—ฎ๐˜๐—ผ๐—ฟ๐˜€.
Lead indicators are fully in our control, every day we can make sure we reach a minimum level of performance. It feels good to consistently hit our targets, which motivativates us to do it again tomorrow.
Our self-esteem grows as we build a track record of success.
We have a predisposition to feel stress/disappointment from negative results. Because Lag indicators are to some extent out of our control. Failure is guaranteed and by association the negative self-talk and self-sabotage.

๐—”๐—ป๐—ฑ ๐—™๐—ถ๐—ป๐—ฎ๐—น๐—น๐˜†
So what did I do? I set myself 2 targets to make 15000 steps a day and to consume 2 portions of protein and 8 portions of Veg a day. Once a week I measure my waist.
5 weeks after my plan was put in motion? I have lost 39mm around my waist, my belly no longer gets out of bed before I do and Becki still asks me to wear a shirt while cooking.

*This is not meant as any form of health/diet advice. Please do not follow my targets for anything health-related. This is written strictly to give a relatable discussion into the difference between lead and lag indicators.

11/06/2020

๐—˜๐—ณ๐—ณ๐—ฒ๐—ฐ๐˜๐—ถ๐˜ƒ๐—ฒ๐—ป๐—ฒ๐˜€๐˜€ - ๐—ง๐—ฟ๐˜† ๐—ถ๐˜, ๐—ถ๐˜'๐˜€ ๐—ฎ๐—น๐˜„๐—ฎ๐˜†๐˜€ ๐—ฏ๐—ฒ๐˜๐˜๐—ฒ๐—ฟ ๐˜๐—ต๐—ฎ๐—ป ๐—ฒ๐—ณ๐—ณ๐—ถ๐—ฐ๐—ถ๐—ฒ๐—ป๐—ฐ๐˜†!
Do you feel like you are always at the mercy of your to-do list? I have now been in the uncomfortable position of having at least 350 things on my to-do list for the last 30 months and some times sitting at my desk feels like a long dark slog with no end in sight.

That said, there are some bright points to be treasured. Last night I had the joy of watching the โ€˜๐—•๐—ถ๐—ด๐—ด๐—ฒ๐˜€๐˜ ๐—Ÿ๐—ถ๐˜๐˜๐—น๐—ฒ ๐—™๐—ฎ๐—ฟ๐—บโ€™ (It's brilliant, watch it!). We follow a couple as they seek to start a farm that would work with the natural environment around them and not to try and control it as we often seem in business as well as in farming. This is a value that sits VERY well with me.

The beautiful lady that chooses to be in my life commented after the film ended โ€˜Why isnโ€™t all farming like that?โ€™ What a brilliant question! Yes, itโ€™s hard to go against the grain and have your own original opinions and ideas, yes itโ€™s hard to be patient, sow the seeds (pun unintended) and watch the fruits of your labors grow.
I think the REAL problem is that conventional farmers are so busy fighting fires that they cannot make time to think about what is starting their fires. And sadly and quite literally in this film's case, a lot of the time it is ourselves.

Itโ€™s often repeated but rarely acted upon, โ€˜๐˜„๐—ฒ ๐—ป๐—ฒ๐˜ƒ๐—ฒ๐—ฟ ๐—ต๐—ฎ๐˜ƒ๐—ฒ ๐˜๐—ถ๐—บ๐—ฒ ๐˜๐—ผ ๐—ฑ๐—ผ ๐—ถ๐˜ ๐—ฟ๐—ถ๐—ด๐—ต๐˜, ๐—ฏ๐˜‚๐˜ ๐˜„๐—ฒ ๐—ฎ๐—น๐˜„๐—ฎ๐˜†๐˜€ ๐—ต๐—ฎ๐˜ƒ๐—ฒ ๐˜๐—ถ๐—บ๐—ฒ ๐˜๐—ผ ๐—ฑ๐—ผ ๐—ถ๐˜ ๐—ฎ๐—ด๐—ฎ๐—ถ๐—ปโ€™.
So what's my 3 step routine to make sure I am focusing on the right task?

I am going to assume you have deleted and prioritised your tasks, so Iโ€™ll look at 3 further steps.

๐—ฅ๐—ฎ๐—ป๐—ธ ๐—ฏ๐˜† ๐—น๐—ถ๐—บ๐—ถ๐˜๐—ถ๐—ป๐—ด ๐—ณ๐—ฎ๐—ฐ๐˜๐—ผ๐—ฟ: We all have 1 limiting factor, time so we need to measure our success per unit time. As we know time = money so value & rank your tasks per unit time. So for example:
1 hour for me producing accounts is worth my business ยฃ25. I literally swap my time for money, and sadly sometimes, not even that much.
1 hour spent on stream lining a process that takes an hour once a week for my brilliant accounts senior by 10%, makes my business ยฃ300 a year more profitable.
1 hour spent creating a simple to use dashboard that gives more clarity on where a process is not working so I can prevent the same mistake happening again, could well be a 4 figure return on my time (happier staff means higher staff retention and higher retention of highly skilled work that would be devastating to the future of my business).

Having a simple and effective ranking system will help you justify effort being spent on long term goals. My voice in my head is sometimes very loud telling me I have to get this letter or that reconciliation done RIGHT NOW!

๐—–๐—ฟ๐—ฒ๐—ฎ๐˜๐—ถ๐˜ƒ๐—ฒ ๐—ฆ๐—ผ๐—น๐˜‚๐˜๐—ถ๐—ผ๐—ป๐˜€: Take the time to really think around a problem, There are elegant solutions to a lot of our problems (in the Biggest little Farm, the farmer used ducks to deal with a snail plague. This solution has the added benefits of reducing costs of feeding for the ducks, improved nutrition for the cover crop and a reduction in casualties for the none snail animal population. How often do we jump for the quickest solution to a pain point and miss the opportunity hidden in plain site?

๐—ฆ๐—ฐ๐—ต๐—ฒ๐—ฑ๐˜‚๐—น๐—ฒ ๐˜†๐—ผ๐˜‚๐—ฟ ๐˜๐—ผ-๐—ฑ๐—ผ ๐—น๐—ถ๐˜€๐˜ ๐—ณ๐—ผ๐—ฟ ๐˜๐—ต๐—ฒ ๐—ฑ๐—ฎ๐˜†: Once we have decided what to do we need to be aware of the conflict between โ€˜doing it rightโ€™ against โ€˜good enoughโ€™. Perfectionists particularly will struggle with leaving a task where they do not feel it is perfectly resolved. Using a schedule will force you to come to the point of a working prototype that you can then schedule time to measure and correct in the future. Fail forward fast. Scheduling is key to doing this!

And seriously, watch the Biggest Little Farm!

19/03/2020

๐— ๐—ฎ๐—ถ๐—ป๐˜๐—ฎ๐—ถ๐—ป๐—ถ๐—ป๐—ด ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ฒ๐—ณ๐—ณ๐—ฒ๐—ฐ๐˜๐—ถ๐˜ƒ๐—ฒ๐—ป๐—ฒ๐˜€๐˜€, ๐——๐—ผ ๐˜†๐—ผ๐˜‚ ๐—ธ๐—ป๐—ผ๐˜„ ๐˜๐—ต๐—ถ๐˜€ ๐—ผ๐—ป๐—ฒ ๐˜€๐—ถ๐—บ๐—ฝ๐—น๐—ฒ ๐˜๐—ถ๐—ฝ ๐˜๐—ผ ๐˜€๐˜‚๐—ฝ๐—ฒ๐—ฟ๐—ฐ๐—ต๐—ฎ๐—ฟ๐—ด๐—ฒ ๐˜†๐—ผ๐˜‚๐—ฟ ๐˜๐—ผ-๐—ฑ๐—ผ ๐—น๐—ถ๐˜€๐˜?

I still remember those Friday afternoons at the office as a trainee, we'd just come back from the pub having played 3 games of pool and eaten plates piled with beautiful salted golden chips (it was early 2000's and fries hadn't made it to deepest Somerset) washed down with Stella Artois (I was young!). The three of us would be semi-comatose in our office waiting for the day to end. When we heard the distracted footsteps of our office's senior partner coming down the stairs we'd all jump to work... as someone would mumble...

'pretend your busy, the boss is coming'
. once he had passed through we'd fall back to sleep waiting for our food babies to be delivered or for the Friday agony to end.

I'm older, I enjoy achieving and making the most of my day. Sadly problems change, I now have moderate tinnitus that wakes me up at 7 am each day and as a natural night owl, I am regularly left with between 4 and 5 hours of sleep. be it children or family stresses, a lot of people start their day with very little energy. In order to maintain my effectiveness at work, I need to stack the cards in my favor or they will join me on the floor for a nap under my desk.

๐— ๐˜† ๐—ฎ๐—ป๐˜€๐˜„๐—ฒ๐—ฟ ๐—ถ๐˜€ ๐˜๐—ผ ๐—ฝ๐—น๐—ฎ๐—ป, ๐—ฏ๐˜‚๐˜ ๐—ป๐—ผ๐˜ ๐—ต๐—ผ๐˜„ ๐˜†๐—ผ๐˜‚ ๐˜๐—ต๐—ถ๐—ป๐—ธ....
My plans have 3 columns, firstly like everyone else I have the projects I want to work on that day & the estimated time I want to work on that project. Most importantly I have the next step to complete that task, our will power is a muscle & our job in working with this muscle is to not wear it out.
If with each task you start you need to decide where you had taken the job, what options you have to do next and choose the most appropriate option. You've gone from a simple tick in a list to 15 minutes of work prior to the next task. If you've got 6 tasks to do in a day you are easily adding 20% to your mental workload, this both puts you under a time pressure to rush and tires out your concentration meaning you are more likely to make mistakes and the problems on the task snowball!
I'll also break down my tasks for a project into bite-sized chunks, those ticks as I advance through the day give me a feeling of progress. Leaving me internally driven towards completing task after task.

๐—ง๐—ต๐—ฒ ๐—ฒ๐—ณ๐—ณ๐—ฒ๐—ฐ๐˜๐—ถ๐˜ƒ๐—ฒ ๐˜„๐—ฎ๐˜† ๐˜๐—ผ ๐—ฑ๐—ผ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ฝ๐—น๐—ฎ๐—ป?
Add the next task to your checklist when you finish the last task, so when you pick the project up again you can smoothly transition into the doing and not get bogged down in the replanning of the next task.

I'll be doing a series of posts about maintaining effectiveness over the next few weeks as more of us will be battling our internal demons whilst home working in isolation.

09/03/2020

๐—ง๐—ฒ๐˜€๐˜๐—ถ๐—ป๐—ด: ๐—ง๐—ต๐—ฒ ๐—บ๐—ผ๐˜€๐˜ ๐—ถ๐—บ๐—ฝ๐—ผ๐—ฟ๐˜๐—ฎ๐—ป๐˜ ๐—ฝ๐—ฎ๐—ฟ๐˜ ๐—ผ๐—ณ ๐—ฝ๐—น๐—ฎ๐—ป๐—ป๐—ถ๐—ป๐—ด, ๐˜๐—ต๐—ฎ๐˜ ๐—บ๐—ผ๐˜€๐˜ ๐—ฝ๐—ฒ๐—ผ๐—ฝ๐—น๐—ฒ ๐—ป๐—ฒ๐˜ƒ๐—ฒ๐—ฟ ๐—ฑ๐—ผ.

The most expensive part of any project is the work we do/pay for that we should never have done.
4 years ago I took my accountancy business into the online accounting age by transferring most of my clients from a spreadsheet-based system to an online system 'Xero'.
We like Xero and in comparison to it's competition, I definitely recommend the product. However, I deeply regret the way I went about the change.
The first move was initiated by a client that wanted double-entry bookkeeping on their sales system which was a feature our previous recommended app did not include.
This client was IT friendly, forward-thinking, and motivated (i.e. the perfect client).
The changeover was smooth and once the client trained we encountered a minimum of problems.
My staff liked the system more than our current spreadsheet system, we could leverage another tool (Receipt Bank) more effectively ... so I decided to move the majority of our clients across.
This is where I hit problems... We started to get behind with our work lists because clients were not setting up their side of Xero, our working papers had not been adjusted for the specific problems Xero posed etc. In short, our productiveness dropped by 40% wiping out my profit for the following 6 months as we struggled to update our internal systems and train clients.
My mistake was to not test Xero fully, in hindsight I should have test 3 separate clients sequentially & then moved my clients across in batches of 10 to minimize the cumulative effect of errors being made from a lack of understanding and learning.

๐Ÿฏ ๐—•๐—ฒ๐—ป๐—ฒ๐—ณ๐—ถ๐˜๐˜€ ๐—ผ๐—ณ ๐—ฎ๐—ป ๐—ฒ๐—ณ๐—ณ๐—ฒ๐—ฐ๐˜๐—ถ๐˜ƒ๐—ฒ ๐—ฟ๐—ผ๐˜‚๐—ป๐—ฑ ๐—ผ๐—ณ ๐˜๐—ฒ๐˜€๐˜๐—ถ๐—ป๐—ด:
๐—š๐—ฒ๐˜ ๐—ฎ๐—ป ๐—ฎ๐—ฐ๐—ฐ๐˜‚๐—ฟ๐—ฎ๐˜๐—ฒ ๐—ถ๐—บ๐—ฝ๐—ฟ๐—ฒ๐˜€๐˜€๐—ถ๐—ผ๐—ป ๐—ผ๐—ณ ๐˜๐—ต๐—ฒ ๐—ฐ๐˜‚๐˜€๐˜๐—ผ๐—บ๐—ฒ๐—ฟ'๐˜€ ๐—ฒ๐˜…๐—ฝ๐—ฒ๐—ฟ๐—ถ๐—ฒ๐—ป๐—ฐ๐—ฒ: by focusing on a few clients, you can direct your questions in order to get the right detail in your feedback.

๐—ฌ๐—ผ๐˜‚ ๐—ฐ๐—ฎ๐—ป ๐—ฟ๐—ฒ๐—ณ๐—ถ๐—ป๐—ฒ ๐˜†๐—ผ๐˜‚๐—ฟ ๐˜€๐˜๐—ฟ๐—ฎ๐˜๐—ฒ๐—ด๐˜† ๐—ฎ๐˜€ ๐˜๐—ฟ๐˜‚๐˜๐—ต ๐—ฟ๐—ฒ๐—ฝ๐—น๐—ฎ๐—ฐ๐—ฒ๐˜€ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ฎ๐˜€๐˜€๐˜‚๐—บ๐—ฝ๐˜๐—ถ๐—ผ๐—ป๐˜€: I don't think we ever get our first set of assumptions correct, effective testing lets you refine your strategy to better serve your business's customers & staff.

๐—˜๐—ฎ๐˜€๐—ถ๐—ฒ๐—ฟ ๐˜๐—ผ ๐˜€๐˜๐—ผ๐—ฝ ๐—ฎ ๐˜€๐˜๐—ฟ๐—ฎ๐˜๐—ฒ๐—ด๐˜† ๐—ถ๐—ณ ๐˜†๐—ผ๐˜‚ ๐—ฟ๐—ฒ๐—ฎ๐—น๐—ถ๐˜‡๐—ฒ ๐—ถ๐˜ ๐—ถ๐˜€ ๐—ป๐—ผ๐˜ ๐˜„๐—ผ๐—ฟ๐—ธ๐—ถ๐—ป๐—ด: If you have committed 5% of your workforce to testing a new strategy. When you realize it is not going to work whilst annoying you've not lost much. If you commit 100% of your efforts to a new untested strategy, if it the strategy is a dud? That's a lot of jobs at risk if you reverse your decision and try to pivot back to the old strategy.

28/02/2020

๐—œ ๐—ต๐—ฎ๐˜ƒ๐—ฒ ๐—ฎ ๐—ณ๐—ฒ๐—ฒ๐—น๐—ถ๐—ป๐—ด ๐˜๐—ต๐—ถ๐˜€ ๐—ถ๐˜€ ๐˜๐—ต๐—ฒ ๐—บ๐—ผ๐˜€๐˜ ๐—ถ๐—บ๐—ฝ๐—ผ๐—ฟ๐˜๐—ฎ๐—ป๐˜ ๐—น๐—ถ๐˜€๐˜ ๐˜†๐—ผ๐˜‚ ๐—ต๐—ฎ๐˜ƒ๐—ฒ ๐—ป๐—ฒ๐˜ƒ๐—ฒ๐—ฟ ๐˜„๐—ฟ๐—ถ๐˜๐˜๐—ฒ๐—ป ๐—ฎ๐—ป๐—ฑ ๐˜๐—ต๐—ฒ ๐Ÿฏ ๐—ฟ๐—ฒ๐—ฎ๐˜€๐—ผ๐—ป๐˜€ ๐˜„๐—ต๐˜† ๐˜†๐—ผ๐˜‚ ๐˜€๐—ต๐—ผ๐˜‚๐—น๐—ฑ ๐˜€๐˜๐—ฎ๐—ฟ๐˜.

3 years ago, my first habit after arriving at the office was to open my emails and start processing the 60 - 125 daily emails from start to finish. There were days where Iโ€™d bill no billable hours, spend 10 hours at the desk and still not process just the emails I had received in that day! It was a dark and depressing time. I had my fingers in every task, my staff felt undermined and I was strung out. What changed? my list of '๐˜๐—ต๐—ถ๐—ป๐—ด๐˜€ ๐—œ ๐—ฑ๐—ผ ๐—ก๐—ข๐—ง ๐—ฑ๐—ผ'.

๐Ÿญ. ๐—™๐—ผ๐—ฐ๐˜‚๐˜€ ๐˜†๐—ผ๐˜‚๐—ฟ ๐˜๐—ถ๐—บ๐—ฒ ๐—ผ๐—ป ๐˜๐—ต๐—ฒ ๐—ฐ๐—ฟ๐—ฒ๐—ฎ๐˜๐—ถ๐˜ƒ๐—ฒ ๐˜๐—ฎ๐˜€๐—ธ๐˜€ ๐˜๐—ต๐—ฎ๐˜ ๐—บ๐—ฎ๐—ธ๐—ฒ ๐˜๐—ต๐—ฒ ๐—ฏ๐—ถ๐—ด๐—ด๐—ฒ๐˜€๐˜ ๐—ฑ๐—ถ๐—ณ๐—ณ๐—ฒ๐—ฟ๐—ฒ๐—ป๐—ฐ๐—ฒ ๐˜๐—ผ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ฏ๐˜‚๐˜€๐—ถ๐—ป๐—ฒ๐˜€๐˜€ ๐—ฎ๐—ป๐—ฑ ๐—พ๐˜‚๐—ฎ๐—น๐—ถ๐˜๐˜† ๐—ผ๐—ณ ๐—น๐—ถ๐—ณ๐—ฒ.
Admin, errands and chores, whatever you call them, these are tasks that can expand to fill the workday. We are inclined to want to feel busy, these low challenge tasks meet that psychological need without making a meaningful impact on our workday. As business owners our job is to create, think and problem solve.

๐Ÿฎ. ๐—ก๐—ผ๐˜ ๐—ฒ๐˜ƒ๐—ฒ๐—ฟ๐˜† ๐˜๐—ฎ๐˜€๐—ธ ๐˜„๐—ฒ ๐—ฟ๐—ฒ๐—ฐ๐—ฒ๐—ถ๐˜ƒ๐—ฒ ๐—ถ๐˜€ ๐—ผ๐˜‚๐—ฟ ๐—ฟ๐—ฒ๐˜€๐—ฝ๐—ผ๐—ป๐˜€๐—ถ๐—ฏ๐—ถ๐—น๐—ถ๐˜๐˜†.
We have inboxes (Gmail.... voicemails.... whatapp....messenger.... the list goes on ) full of requests and delegated tasks from other people, this where you are being given someone elseโ€™s problem. Pause, youโ€™ll be surprised how many of these tasks no longer need to be done if left till tomorrow.

๐Ÿฏ. ๐—ฆ๐˜๐—ผ๐—ฝ ๐—ฑ๐—ผ๐—ถ๐—ป๐—ด ๐—น๐—ผ๐˜„-๐˜ƒ๐—ฎ๐—น๐˜‚๐—ฒ ๐˜๐—ฎ๐˜€๐—ธ๐˜€.
As you start removing the lowest value tasks from your day, youโ€™ll find you have more and higher-value jobs that are billable to clients, more money in less time. Isnโ€™t that the work-life balance we all want?

Your time is valuable and best spent doing the things you enjoy, find meaningful and are brilliant at.

26/02/2020

๐——๐—ผ๐—ป'๐˜ ๐˜‚๐—ป๐—ฑ๐—ฒ๐—ฟ๐—ฝ๐—ฟ๐—ถ๐—ฐ๐—ฒ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ผ๐˜‚๐˜๐—ฝ๐˜‚๐˜! ๐Ÿฏ ๐—ถ๐—ฑ๐—ฒ๐—ฎ๐˜€ ๐˜๐—ต๐—ฎ๐˜ ๐˜„๐—ถ๐—น๐—น ๐—บ๐—ฎ๐—ธ๐—ฒ ๐˜†๐—ผ๐˜‚ ๐—ฐ๐—ต๐—ฎ๐—ฟ๐—ด๐—ฒ ๐—บ๐—ผ๐—ฟ๐—ฒ ๐—ณ๐—ผ๐—ฟ ๐˜†๐—ผ๐˜‚๐—ฟ ๐˜€๐—ฒ๐—ฟ๐˜ƒ๐—ถ๐—ฐ๐—ฒ๐˜€.
When I first started my business, I had no savings and very little support. I had so little support in fact that my mother laughed at me and said I'd be better chaining myself to a desk at a call center than risk having no income. So, when I first started developing leads to the point of a contract I would always offer a price much lower than the market value just to ensure I got some sort of income

What would do you do? You know you have 41 pence left in your bank account, you have a potential client about to sign on the dotted line. If you're like me you still knocked the price down a bit, just to make sure you got the work. In hindsight, I can see how these clients are blots in my client book. They are a drain on our man-hours and the cause of more queries than the other 80% of the business. After almost 10 years running my business here are my 3 unexpected side effects of underpricing my services.

๐Ÿญ. ๐—Ÿ๐—ฒ๐—ด๐—ฎ๐—ฐ๐˜† ๐—ฃ๐—ฟ๐—ถ๐—ฐ๐—ถ๐—ป๐—ด.
The old adage is that it is a lot easier to lower a price than raise a price. When you first agree a contract you are actually agreeing on the starting price point for all your future contracts. Your first contract will set the standard for your price-value ratio. After 10 years I still have clients for which I make less than it costs to service that same client because I just can not increase the price any more than 5% a year. Legacy pricing is what we'd call a management debt, it doesn't hit us when we first agree on the contract but years down the line it keeps biting us in the ass every time we write an invoice.

๐Ÿฎ. ๐—ฌ๐—ผ๐˜‚ ๐˜„๐—ผ๐—ฟ๐—ธ ๐—ฒ๐˜…๐—ฝ๐—ผ๐—ป๐—ฒ๐—ป๐˜๐—ถ๐—ฎ๐—น๐—น๐˜† ๐—บ๐—ผ๐—ฟ๐—ฒ ๐—ต๐—ผ๐˜‚๐—ฟ๐˜€ ๐˜๐—ผ ๐—ฒ๐—ฎ๐—ฟ๐—ป ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ฟ๐—ฒ๐—พ๐˜‚๐—ถ๐—ฟ๐—ฒ๐—ฑ ๐—ถ๐—ป๐—ฐ๐—ผ๐—บ๐—ฒ ๐˜๐—ผ ๐—น๐—ถ๐˜ƒ๐—ฒ.
You'd think that as your price halves you'd have to pay twice the number of man-hours to create the profit you want. It's not quite that simple. First, you have some costs that increase by the unit of time you are working on a job (most significantly staffing costs). It's helpful to consider your gross profit when considering a price drop, if you sell your units for ยฃ50 an hour, but you are buying units at ยฃ20 an hour, a ยฃ10 (20%) drop in sales price is actually a 33%% drop in gross profit. Second, you subconsciously start work longer and harder, putting pressure on your team to work longer and harder. This emphasis on additional effort and time will eventually leave for inefficiency and errors.... both of which cost time and now you 20% drop in selling price is a 50% drop in gross profit. Keeping true to your price model will leave you working fewer hours for more profit.

๐Ÿฏ. ๐—–๐—ต๐—ฒ๐—ฎ๐—ฝ ๐—ฐ๐—น๐—ถ๐—ฒ๐—ป๐˜, ๐—ป๐—ฒ๐—ฒ๐—ฑ๐˜† ๐—ฐ๐—น๐—ถ๐—ฒ๐—ป๐˜.
I've noticed for both myself and my clients we all complain about that one client, they argued us to the bone on the price & then expect little stretches to the contract and an additional level of hand-holding. At some point, it will go wrong and we're the ones to blame, these clients are best avoided at all costs! By not shifting on your price, these clients will self select away from your service making your life significantly easier!

In your experience are there any other reasons you should not discount your price?

23/02/2020

๐—ช๐—ผ๐˜‚๐—น๐—ฑ ๐˜†๐—ผ๐˜‚ ๐—ฏ๐—ฒ๐—น๐—ถ๐—ฒ๐˜ƒ๐—ฒ ๐—บ๐—ฒ ๐—ถ๐—ณ ๐—œ ๐˜๐—ผ๐—น๐—ฑ ๐˜†๐—ผ๐˜‚ ๐˜๐—ต๐—ฎ๐˜ ๐˜†๐—ผ๐˜‚ ๐—ฐ๐—ฎ๐—ป ๐—ฐ๐—ผ๐—ป๐˜๐—ฟ๐—ผ๐—น ๐˜๐—ต๐—ฒ ๐—ฑ๐—ฒ๐—ฝ๐˜๐—ต ๐—ผ๐—ณ ๐˜†๐—ผ๐˜‚๐—ฟ ๐˜๐—ฎ๐—น๐—ฒ๐—ป๐˜ ๐˜„๐—ถ๐˜๐—ต ๐—ท๐˜‚๐˜€๐˜ ๐Ÿฏ ๐—ฐ๐—ต๐—ผ๐—ถ๐—ฐ๐—ฒ๐˜€?

Many of us believe our talents to be limited. As a child, I would watch the girls at school disco's dance around and think: 'how do they have such confidence' & 'You'd never see me do anything so stupid'. Now at the age of 35 I have the joy of teaching other people break through their own limits and learn to dance Salsa.

As a small business owner, there will always be parts of running a business that we feel we have no talent for.

We can all break through our self imposed limitations by changing our following three choices:

๐—ก๐—ฒ๐—ฒ๐—ฑ
When we find an intense need to develop, breaking through plateau's becomes natural. When you look at the life you want, do you yearn for it enough to pay the price of change each and every day?

๐—œ๐—ป๐—ฝ๐˜‚๐˜
Are you seeking fresh input and knowledge to apply in your situation? Our insecure minds like to think that we are the authority on what we know. To extend the limits of your talent seek to be challenged and develop the depth of your understanding.

๐—–๐—ผ๐—ป๐˜€๐—ถ๐˜€๐˜๐—ฒ๐—ป๐—ฐ๐˜†
Are you committed to the day to day focused practice that will feel boring and uninspiring? What systems can you set up to keep focused on developing one trait at a time and internalize the new understandings and revelations you receive?

For my journey dancing, I went from uncoordinated to a teacher by becoming addicted to feeling free when I express myself with music. I NEED to move when I hear good music, I LOVE the learning process and will JOYFULLY dance 6 nights a week & regret the 7th night I spend waiting for my underwear to finish in the washing machine!

What other key choices that have helped you break through the perceived limits of your talents?

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