Imagine reaching a 15% net profit after compensating yourself with a market-based salary. While it might initially sound like a lofty goal, it’s not just a pipe dream. This could be difficult to believe when one can’t even reach double digits salary, but it is a reality for some companies. The good news is, it’s completely achievable. We will walk through three pivotal components that might be holding you back from reaching this figure and how to overcome them.
1. Specialization Over Generalization
One significant profit drainer is attempting to cater to everyone and every request that comes your way. An example of this is if you are doing project, maintenance, and service work. That is an example of trying to do everything. This will lead into a struggle to get real profitability. It’s time to shift gears. Instead of trying to be a jack-of-all-trades, focus on being the master of a specific area. When you try to be all things to everyone, you become nothing to no one.
Think about narrowing your focus and identifying your key customer and product. By honing on your expertise and catering to a niche, you’ll cultivate a reputation for excellence in that area of service. Once you focus on the key product/service and let go of the others, you can get your pricing model really on point.