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It’s mid-January—when you’re probably getting your year-end statements and taking a good hard look at your financials.
Yes, focus on executing your tax strategy (hopefully you’ve planned that well in advance), but it’s also an excellent time to decide which clients and offerings are your most profitable.
What do I mean by profitable?
One: They fit into your “ideal” client/buyer/offering definition. Because any client or offering could be highly profitable financially, but still suck the life out of you. Which makes them unprofitable in my book.
Two: Accounting for your investment—money, time and headspace—this client/buyer/offering produces a positive result to your financial bottom line (measure profit, not revenue).
Three: Replacing this type of client/buyer/offering won’t deliver more profit over time. Say you charge two clients the same, but one requires half the time of the other. Guess which one is “profitable”? You want more of those.
Looking at your clients/buyers/offerings through this clear-eyed profit lens forces you to extricate yourself sooner from the offerings and relationships that distract you from something better.
The time you spend supporting less than ideal clients, buyers and offerings is time you could free to pursue your genius with the people who value it most.
Yes, you may see a dip in revenue for a bit while you experiment and design your new path, but your profitability will increase.
And once you find the right mix of clients, buyers, offerings and price tags, both your revenue and profit will soar.