You’ll know when it happens.
You’ve worked hard to grow your small business and finally the clients are lining up to get a piece of your valuable product or service. You’re working all hours of the week with no time off in sight.
And then reality hits. Your current situation is not sustainable. You are working too many hours and not making enough money. You risk disappointing your clientele because you can’t keep up with demand, or you’ll burn out trying. And you won’t have the paycheck to show for it.
Hitting this crossroads is inevitable and while it can seem like an entrepreneur’s nightmare, it’s actually a really good “problem” to have. It means that as a small business owner, you’ve succeeded to the point where you have outgrown your current business model and you need to evolve.
First and foremost, remember that adapting is just part of being an entrepreneur. So if this happens to you, take a deep breath and objectively assess your situation.
Here are 3 ways to take your small business to the next level:
Do More in Less Time
The easiest way to make more money in less time is to raise your rates. This may or may not be an option for you, depending on supply and demand and what your customer loyalty is like. Make sure you check out industry rates and what your legitimate competition is charging, so that this move doesn’t backfire on you. It can be a scary move, but remember that losing a few clients in favor of keeping more discerning and better paying clients is worth it.
You can also make more in less time by cutting down the time it takes for you to do your job. Are you focused? Are you using time management techniques to your full advantage? Brutally evaluate your workflow and decide if any of your procedures or methods are inefficient. Does your equipment or software need an upgrade? Do you need to upgrade your skill-set?
Build a Team
You can get more done in less time by hiring subcontractors. The challenge with this, of course, it requires an investment of both time and money. Time because you have to train someone to do the job properly, and money because no one works for free!
The other challenge you will likely face is that your clients will need to be reassured that they will be in good hands. If they are used to having you work closely with them, you need to make sure that they feel comfortable when you grow your team and hand them off to someone else.
Your role is going to change dramatically at this stage, as you will truly be working “on your business” as opposed to “in your business.” Be prepared to assume a more managerial role as opposed to the role of technician in your business. You may feel that up until this point, you’ve basically created a great job for yourself, and now you’re about to create a business.
Create a Passive Income Stream
Basically, creating a passive income stream means you’re able to make money while you sleep.
You can do this by creating a product that you can sell online. A product can include a book, an eBook, a video tutorial or anything you can sell using an automated online system. You could also create a blog or podcast series and sell advertising once you’ve built up a big enough following. Regardless, you will have to be prepared to invest time and money up front for this strategy to work, but if you see it through properly, you’ll reap the benefits for years to come.
Need a hand with your business’ brand? Call Kim Speed at Purple Moon Creative today!
