The Month in Review - September 2024
Summary
In this September review, Joel and Jed discuss various client experiences and lessons learned over the month. They highlight the importance of planning for the holiday season, effective marketing strategies, and the significance of confidence in pricing and packaging services. The conversation also touches on the necessity of identifying and letting go of difficult clients, defining roles within partnerships for better business structure, and supporting clients through transitions in their business models. Overall, the review emphasizes the growth and positive outcomes achieved by clients through strategic coaching and planning.
Takeaways
It's crucial to plan ahead for the holiday season.
Confidence in pricing can significantly impact profitability.
Identifying difficult clients is essential for business health.
Defining roles in partnerships can lead to better efficiency.
Transitioning from hourly rates to packaging can boost confidence.
Effective marketing strategies can fill the pipeline with quality leads.
Business owners must prioritize their personal and financial goals.
Letting go of unproductive clients can free up resources for ideal clients.
Understanding financial needs is key to successful transitions.
Coaching can provide the structure needed for business growth.
Keywords
business coaching, client management, marketing strategies, pricing, builders, packaging services, business growth, client retention, role definition, transition planning
Chapters
00:00 September Review: Wins and Lessons
04:55 Builders' Strategies for a Stress-Free Christmas
09:48 Marketing and Pricing: Maximizing Profitability
15:05 Confidence in Packaging: Transitioning from Hourly Rates
19:52 Identifying and Letting Go of Difficult Clients
25:14 Business Structure: Defining Roles for Growth
29:06 New Beginnings: Supporting Clients in Transition
September Review: Wins, Lessons, and Key Business Insights
As we step into October, it’s a good time to reflect on what September brought for business owners, particularly those in trades and professional services. This month, we’ve seen the benefits of forward planning, decisive conversations, and taking control of the business environment. Below are some key takeaways from our clients’ experiences.
1. Builders and the Christmas Rush
For many builders, the end of the year can be a chaotic period as they try to finish projects before the Christmas break. However, one of our long-term clients is in a much better position this year. Early in the year, we mapped out a clear plan to manage workload and avoid the typical last-minute rush. This proactive approach has allowed the client to enter the final quarter of the year with confidence, knowing they have flexibility in their schedule and cash flow under control.
In contrast to the past, this builder now has the option to either take on additional jobs or focus on personal projects at home. The peace of mind that comes from this careful planning highlights the value of small, consistent habits in business. The builder's ability to collaborate with other teams during this time also opens up new opportunities, demonstrating that planning ahead not only reduces stress but can also enhance business relationships.
2. Marketing and Profit Margins
Another client in the trades sector has been focusing on their marketing strategy. With their pipeline now starting to fill up, the next challenge is maximising profits on each job. It's essential to avoid underpricing work, which can leave money on the table, especially when marketing efforts begin to bear fruit.
We’ve worked closely with this client to ensure they are not just filling their schedule but making informed decisions about pricing. By analysing the numbers and building confidence around quoting, the client now has a clear understanding of their margins. This approach allows them to maintain a strong stance on pricing without feeling pressured to lower quotes unnecessarily, ultimately protecting their bottom line.
3. Moving to Service Packages
For professional services, packaging services instead of charging hourly rates has been a game-changer. One of our clients has been transitioning to this model and is gaining confidence in presenting these packages to clients. Previously hesitant about how clients would respond, they’ve now embraced this approach, leading to better client relationships and clearer value propositions.
The shift from hourly billing to packaged services brings several advantages. It simplifies the offering, helps clients understand the value more clearly, and often leads to higher revenue. Additionally, it provides predictability for both the client and the business, fostering a more professional and confident environment in client interactions.
4. Knowing When to Let Go of Problem Clients
One of the more significant themes in September was helping clients understand when it's time to move on from difficult or unprofitable clients. Every business has its share of challenging customers, but holding on to them can drain resources and affect overall morale.
One client, after years of running their business, has reached a point where they are identifying and eliminating clients who no longer align with their business goals. By applying a simple, unemotional decision-making process—based on financials and personal well-being—they are able to move forward with clients who bring value rather than frustration. This process has not only streamlined their operations but has also allowed them to focus on clients who fit their long-term vision.
5. Confidence in Pricing and Client Management
Lastly, we touched on how building confidence in pricing strategies has been crucial for many clients. Whether it’s a trade-based business or a professional service, knowing how to quote properly and sticking to it builds a sense of empowerment. Clients are learning that it’s not just about landing every job but ensuring that the jobs they do take on are profitable and sustainable.
Having the confidence to walk away from potential clients who are not willing to meet their pricing is empowering. It allows business owners to focus on quality over quantity and ensures that they are meeting their financial goals without overextending themselves.
6. Roles in Partnerships
Running a successful business with partners can be challenging, especially when roles are not clearly defined. A common situation many partners face is being skilled technicians but struggling to run a business. In businesses where multiple partners share responsibilities equally, chaos often ensues. This is particularly evident in partner-based trades, where each partner may attempt to manage all aspects of the business, leading to inefficiencies.
From years of experience coaching and advising clients, we’ve seen that identifying each partner’s strengths is crucial. Not all partners need to do everything. For instance, if one partner enjoys and excels at managing operations, it's best for them to lead in that area. This doesn’t mean decisions are made by one person—it’s still a team effort. However, having one person responsible for daily operations can significantly improve efficiency and reduce business chaos.
Two examples highlight this journey. One client, in business for over five years, achieved remarkable growth after identifying clear roles within the partnership. Another, just one year into business, is following a similar path and is already experiencing greater stability. By focusing on their strengths, they are preparing for a more organised, peaceful business operation, with financial rewards naturally following.
We also often observe this challenge in new business collaborations. When multiple individuals come together to start a project, it's essential to align on goals and designate a leader early on. Without clarity in roles and goals, energy is wasted on trivial issues, preventing meaningful progress. Understanding and communicating each partner’s goals from the outset is crucial, as misalignment can lead to long-term conflict.
7. Never Too Early or Late for Coaching
Shifting focus to another client, we recently reconnected with a business owner who had paused coaching last year to implement changes. After gaining valuable experience through tough challenges, the client is now better equipped and motivated to move forward. Sometimes, stepping back and allowing time for implementation is key. Coaching isn’t just about meeting regularly; it’s about ensuring the right foundations are in place before moving forward.
Similarly, we recently began working with a long-term accounting client who is undergoing a business model change. They're moving away from client work to pursue projects for themselves, and we've been helping them set personal and family goals. This approach provides clarity on financial needs and helps build a sustainable foundation for their new venture.
Conclusion
September brought several valuable lessons for our clients, from planning ahead to maximizing profits and maintaining control of their client base. The key takeaway? A well-structured, confident approach to business, whether in trades or services, can transform the end-of-year rush into a period of opportunity and growth.
