Everyone has a limited amount of their own time that they can sell. If you are the main product that you sell, you will eventually max out your income.
A small business owner that has reached this maximum income level has to make a major change in operations, and it will require a major structure change in the business plan. Several issues have to be examined before a structure change is recommended:
- Is the current bottom line profit enough to provide a comfortable living for the owner and enough to fund a good retirement plan?
- Can the current income be increased by raising the price?
- Can an efficiency time management study provide more time for new clients?
If changes have to be made, then a consideration of the following options is necessary:
- One option is to hire and train additional staff. This may result in a decrease in initial income as time has to be allocated to training and the bottom line may be affected by the extra employee. It may be possible to have the new associate on a commission, performance basis, but training time will still be an issue.
- The second option that should be seriously considered is to package the service being provided and to see it on line. There are a variety of platforms that can be used:
- Live webinars
- Subscription information site
For the small business person, the second option has the most potential. On-line information dissemination has become an expected source of “pay-for knowledge” for many businesses. There is a lot of support available to develop this type of a “sales” program.
While I don’t provide the technical implementation, I have developed strategic focus business and marketing plans to help integrate this process into an existing business.
The purpose of business is to deliver value to others, there is no required method for the delivery system.
Nick J. Petra CFP more about this topic coming soon to www.onebizcentral.com.