This is not a post about resolutions!
It is an article about how to see inside your company in ways that can help you grow in 2023.
When you’ve been doing what you’re doing for any length of time, it’s hard to let go.
That’s why resolutions for big changes don’t work.
I live by this advice:
Think “up until now we’ve been doing this or that and it has worked, given us security, made us comfortable, helped us get from point A to point B.
We now need to review and consider changes.”
Instead of resolutions—or revolutions!–take a fresh look at the 5 elements essential to every company that wants to celebrate another year next January 1.
Strategy is one sentence that concisely states the IMPACT you deliver, to whom you deliver it, and for what profit.
“We deliver X IMPACT to Y clients for Z profit.”
Take the time today to write yours.
Is it clear and can you build a strategic plan around it?
A strategic plan will describe the services you need to offer to deliver that IMPACT, the marketing, sales, and customer service to attract and retain the perfect fit client, and the pricing model that delivers the profit.
Pricing model is HOW you determine your fees and prices. The three main options are time based, fixed fee, and IMPACT Based.
NOW is the time to seriously analyze your current pricing model. If you’re relying on time based, your growth is limited. With fixed fees, you’re at risk of becoming ‘productized,’ which means more price competition and limited appeal to people needing complex solutions.
If you choose IMPACT Based Pricing, you will leverage ALL your knowledge and expertise and hit your profit target with every client.
How you calculate profitability
Profit is what is left after subtracting expenses from revenue.
Cost of Goods Sold is not a meaningful factor for knowledge services firms. You have smart people delivering life changing differences to clients.
Work with your accountant or CFO to understand your expenses in detail. Plan to control expenses in a way that supports growth. And work with your marketing and sales teams to attract perfect fit clients whose own goals mesh with the highest level life changing differences you deliver.
The true role of time
Time plays a role in IMPACT Based Pricing, but not the way it does in time based pricing.
Your knowledgeable experts want a reasonable work week, so determine that first. Let’s say it’s 40 hours per week.
The true role of time is understanding what life changing differences can be delivered during that time. Some differences will be quick, some will take much longer. Both are good because you will be meeting client needs.
This affects how you write client engagements. When something can be done quickly, plan for that—BUT do not make the fee relative to that. The fee reflects the IMPACT to the client.
When life changing differences require a lot of time, this gets factored into the professional’s work schedule—but NOT in the fee. The fee will reflect the IMPACT to the client.
And…choose to decline work that requires a lot of time to deliver a small IMPACT. This will help you increase revenue and profit. Use our 6 question ‘discovery’ to help you get there.
The impact of your knowledge and expertise
Do the IMPACTS you deliver roll off your tongue when someone asks, “What do you do?” They should.
Every client offer must be focused on the IMPACTS you deliver, not your inputs.
I wrote the 60 Minute Pricing Makeover Mini Course to open your eyes to the IMPACT you deliver but aren’t comfortable talking about. Buy it today and get it done.
How else could you get a huge leg up for 2023 in just 60 minutes?
Which people lift you higher
When you take a new view of 2023, look for the helpers. That’s not just sweet advice from Mr. Rogers. Every business owner will do better with one or two people who lift them up.
Lifting up is about 1) support for your efforts and 2) providing an outside point of view.
Who do you have now, and will they stay in your life?
Who can you bring into your life for this year?
This is a very personal decision. Forget who’s popular on LinkedIn or TikTok. Whose books are on Best Business Books lists. Who’s truly amazing on webinars and in email marketing.
Find people you relate to for your reasons. Bring them into your life in some fashion that works for you. It may be as a consultant or advisor. It may be as a coach. It may be as a subject matter expert.
Don’t let the excitement of a new year fade away in a morass of overly high expectations or overwhelming resolutions.
Love what you already have and ask how can we build on it?
I’ll be supporting companies like yours this year to do these things. Email me, or text New2023 to 703-801-0345 if you think a partner would help you take a New View.
Thank you for reading. Please share this article with other business owners!