Let me guess: one minute you’re starting the company of your dreams, and the next you’re conducting a staff meeting and putting out fires all day. When did getting paid to do what you love become such a managerial position? As an entrepreneur, you are faced with the inevitable fork in the road as your business keeps growing: Do you assume a managerial role and simply focus on growing the business? Or do you stay small, raise your rates, and keep doing the fulfillment? Some pros and cons are below to help guide you on your road to expansion.
More Hands To Pick Up Stuff. Hiring help means there will be more hands on deck to help with things you might not have time for anymore – like following up with leads, posting to social media, and, oh yeah…that little thing called marketing. On the flip side, hiring help means spending the time to properly train your employees, setting up a payroll, and managing deadlines and expectations. It also requires you putting on that delegation hat and understanding how to manage other people. If you have never managed employees before, you might want to invest in a seminar or two to acquire this very important skill. This is not something you are going to want to figure out by the seat of your pants – those will become very expensive trousers.
As Exclusive As Billy Joel Front Seat Tickets. Scoff all you want, but there are hundreds of fans fighting to spend close to $1K to hear “Piano Man” from the third row. Crazy? No, it’s called exclusivity. And, if you become good enough, money becomes less relative to the service or product you sell and more aligned with the experience you provide. A great advantage to keeping your business exclusive is the notoriety it can get you in your industry. However, it becomes increasingly difficult to compete with larger companies or agencies for top-paying gigs – which often means you’ll be stuck in the same vertical for years.
Whatever You Do, Charge More For It. Whether you decide to stay exclusive or go for world domination, never be scared to raise your rates. Especially true if you are selling a service, the price you charge should be consistent with the value you provide – NOT with the service. Keep an eye on your pricing, and steadily increase prices on an annual or bi-annual basis. What about competitors who are slashing prices? Don’t put yourself in that league. Instead, invest in upgrading your customer’s brand experience. If you can make working with you as unforgettable as hearing “Piano Man” from the third row, then no one will ever argue with you over pricing.
How are you growing your business? Let us know below or email us at firstname.lastname@example.org.