What do you do when you can't keep up with the demand for services and can't afford to hire an employee?
I suggested he charge more, but he says that to keep his clients and compete with larger businesses, he needs to keep his prices below his competitors'. Getting a loan is also a problem because his collateral is limilted. What else can he do?
Even if he loses some customers on price (which he will) . . . he will make it up in margins--and, ultimately, profit is the key to a successful business.
The second key, once prices are raised, is to keep happy customers coming back That's because the key to a viable business is repeat business. There's no sense working hard and devoting hours to what is basically a low-paying job--even if it is his "own" business.
That said, having his own business means he is in control, and he has the power to increase his profits and decrease his time spent working--two results that can be measured by running the business at higher prices, rather than having the lower-priced business run him.
All the best.
Brad Sugars is the founder and chairman of ActionCOACH. As an entrepreneur, author and business coach, he has owned and operated more than two dozen companies including his main company, ActionCOACH, which has more than 1,000 offices in 34 countries.