Do you have a strategy to know when to say no to a potential customer? To know when they walk in the door that although you would like to help them, you just really aren’t capable or you might jeopardize the help you provide to existing customers.
It’s hard not to want to help everyone but the reality is you cannot help everyone that walks through the door. If you do, your business will be subject to the whims of whoever comes through the door.
Inevitably what happens is your business takes on low profit work. Low profits makes it difficult to pay the bills and invest in the future. Every month it will be a challenge to pay the bills. Once you get in the vicious cycle of low margin work you’ll be even more desperate for work. Which means you’ll take on even lower profit opportunities.
It’s easy to spiral into a situation where your business is driven by living paycheck to paycheck. The only way out is to find another driving force. Something that can help you identify who is and who isn’t a good fit.