As a sole proprietor, you can feel like a “one man band” in your business. While there are certainly perks of running a lean operation where you answer only to yourself, when it comes to growth, it can be hard to figure out the right way to scale your business.
After all, many people would suggest the solution is simply taking on more employees or infrastructure. But that isn’t your only option to grow. Learn from my tips for growing a business without growing your overhead.
Know Your Target Market
As a business owner, we often look at our target market in the broadest possible sense. But when you feel like you’re just about at maximum capacity for workload, you need to get smarter about knowing who your true target market really is. Quite literally, you need to raise your standards. This means focusing on people or businesses who are most likely to engage with you at a higher level, sign you in to larger, longer contracts and allow you to become efficient in the work you do from them because it’s predictable or residual.
When marketing to new clients, or when prospective clients approach you, it’s important to walk away from something that isn’t a good fit and risks pulling your attention away from clients who are.
Keep Your Bandwidth Clear
I’ve written about bandwidth before and I’ll say it again here. The most common way I see people waste time, and as a result turn away new jobs, is because they allow tasks, that can and should be completely quickly, consume their whole day or week. Every day I outline the core tasks that “must” get accomplished that day in order for everything else to stay on track. Usually this is no more than two or three items – very doable. But I stick to it! I don’t let these tasks slide into the next day just because they technically can. I wrap them up and clear my bandwidth for the next day because, more often than not, a new project comes across my desk and I’m then ready to capitalize on the extra income.
Raise Your Rates
It can make business owners uncomfortable to be faced with the decision to raise rates in order to increase income. In fact, I see most business owners try to do anything else but raise their prices, even if it means using more of their time or decreasing their margins. That doesn’t really make sense!
As I’ve found out from experience, if your project workload is so full that you don’t think you can take on one more client, you need to raise your rates. Why? Because you’re priced almost too competitively if every business around town is knocking down your door. It means you’re a steal of a deal. In most cases this isn’t a bad thing, don’t get me wrong. But if you want to make more money without taking on more overhead or employees, you need to get comfortable with raising your rates to naturally eliminate your lower paying clientele.
If you’re honest with yourself, you know that these are the clients that eat up most of your time anyways. By raising your rates, you put yourself on a new playing field where you can charge more for your time and do more of the work you love for you the clients you’re passionate about serving.
My final piece of advice, and it’s something you’ve likely heard before, is to work smarter, not harder. If you want to create more time in your day, you need to carefully examine your current processes and work style in order to identify the things that are sucking up time without producing results.
Maybe you’re putting way too much time into creating client proposals. Make this more efficient and streamlined! Maybe you’re giving away hours of your day at coffee meetings and networking events. Learn the art of saying no and focus on only the activities that stand to bring in direct income. When you make a conscious effort to clean up your business’s processes, you’ll be surprised by how hard you’ve been working, without really being smart about it.
Are you a sole proprietor or simply a business owner looking to maintain a lean operation? Share the ways you plan to strategically grow your business without taking on more employees or overhead!