http://www.xslicers.com/blade-model/
What is your business model?
If you have enough customers to keep you busy, gotta make a living, right? Well, not necessarily. Some of the most active around the pros do not earn enough to pay their bills. Moreover, there are consultants, coaches and other service providers who have a lot of time on their hands but also earn some money.
The difference between income levels of these two groups is not just because a group is better in marketing than the other. The difference is in their business models.
In other words, their business model is the answer to the question "How make money? "is the plan of how you will generate enough revenue to cover expenses and profit. Unfortunately, many independent professionals do not really purpose benefit plan. And some who think they have a bit more on magic than they are in the statistics.
For example, when you Out his professional shingle first, charging $ 100 an hour can seem like a lot. After all, if you earned more than $ 100,000 a year, his last work week 40 hours, was still making only $ 48 per hour. So maybe you think that doubling your hourly rate of the former should be more than enough to maintain its net profits to its previous level.
Let's do some quick calculations. If your business model is based on working hard for a major client for weeks or months at a time, such as consultants, many companies do with an hourly rate of $ 100 may actually generate $ 100,000 per year. All you need do is take care of half the time. $ 100 per hour times 20 billable hours per week times 50 weeks a year equals $ 100,000.
But what if your business model is based on the work of two to four hours per month for each customer, as many coaches, therapists and health professionals? Now, if you want to earn $ 100,000 per year to collect the same 20 hours per week, you will have 20 customers at once if you see them for one hour per week and 40 or more when you see them for less time or meet less often.
In the first example above, you need a handful of customers each year, with large blocks of time for you to know. It is a reasonable and realistic model. In the second example, needs a constant stream of new guests arrive and the time available for marketing is likely to be broken into small pieces between periods session. This type of model is the more it can lead to stress and struggle than it is to succeed.
The first place we could be setting the model number two is to increase your hourly rate. You may charge $ 150 per hour, $ 200 per hour or more, if your target market will pay. But since May these guys out of reach for many potential clients, and difficult for you to justify.
However, the rate increases are not the only way to fix a broken business model. The two models have been investigating the payment service models, based on an hourly rate. Instead, you can choose other full model. Here are some examples:
Fee for Service Model
Price day – Instead of charging by the hour, you can load day or half day. This imposes a minimum customers, ensuring that examples of short fragment of his work schedule.: A massage therapist at the site calling on corporate customers, a professional organizer service home business.
Project costs – charging a flat fee for each project allows you to load the time spent planning, research, or thinking on matters of his client. Customers often prefer fixed costs because they can budget their funds more accurately. Examples: A graphic designer creating a logo, a communications consultant writing a newsletter for the company.
Monthly RETAINER – When you ask customers to pay for months in advance, you can charge for their availability, not only the service provided. Its mandate can guarantee a fixed number of hours. If the client uses less, still can get paid. If you use more, you can supplement. Example: A career coach offering as necessary calls and emails between sessions, a virtual assistant that provide service calls to customers for a small business.
Based product models
Flat Fee – A variety articles may be sold for a lump sum to increase your business revenue. "Products" can also include services provided in a joint package. May your buyers or existing customers, or others who can not afford to hire you individually. Examples: A conflict resolution consultant offering public seminars, a coach executive personality assessments provide an image consultant selling a wardrobe design kit.
Subscription – the supply of products or subscription services can provide a stable source of revenue and reduce time to market. A one-time sales can continue to provide income. Examples: A sales trainer selling a series of educational CD for the monthly subscription, a coach hosting a membership-based life of the community online.
Bait and Hook – Also called the "razor and blades" model Example: A time management consultant to provide a training program, including planning day to be rearranged, a site designer web modules owners under a license that must be renewed annually provide.
Any of these models can be used to build an entire business, or you can combine different models together. For example, a consultant could charge a flat fee for assessments, then a day rate for the provision of services. A trainer can charge a subscription fee for clients of the group and a monthly retainer for clients worked individually.
If your company does not earn as much as you want, beyond the marketing or the rate you charge. The real solution may be choosing a new business model.
About the Author
New Winged Steed of the Ebon Blade model, build 8982
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