Most business works on the 80/20 rule. They achieve 80% of their profits from 20% of their customers.
Often they are also tied up with 80% of less profitable customers which stops them spending more time with the 20% more profitable ones.
If your business is at a stage where it is busy. Are you busy with the right things? Are you expending lots of effort for little rewards?
Do you have the financial analysis, or at least your gut instinct, to identify those customers that create the least profit for the time you spend with them? – It is time to lose them and replace them with more profitable business.
So, I expect you have invested in new technology, equipment and training since you started. Have you increased prices to reflect your improved services? If you are providing the same service you did ten years ago to customers at prices from ten years ago, then how will you go forward?
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