I’m not a big “motorhead” or racing fanatic. But I’ve been to some races and I’ve even gotten to hang out in the pits where I watched the pit crews in spring into action. It’s amazing to see them change all four tires on a race car faster than I can clean my own windshield!
In a similar way, I’ve seen a lot of businesses that struggled the same way a flat tire slows down a state-of-the-art race car.
I encourage every business owner to sit back and make a list of exactly what drives the income and value of your business. Look at what your income producers are, and the components necessary to grow the profitability of your business. Determine the most critical parts of your business that have to work together to make you successful. Be sure to also list the things that hold you back.
You may discover that problem hampering your business is that your bottom level clients are slowing everything else down.
Your bottom level clients often monopolize your time and energy so that you can’t shift gears and move your business up to the next level. And they keep you from enjoying your work.
It can be a mistake to think that every single client is essential to your company’s success. You have to admit that some clients are more trouble than they’re worth. About 80% of your headaches probably come from the bottom 20% of your clients.
I recently had this discussion with a family member who owns a business, and I suggested he fire the bottom 20% of his clients. A short time later he called me and said he did exactly that, and was the happiest guy in the world! It helped his business run more efficiently and enabled him to focus on the passions he enjoys.
Please set aside some time to evaluate your business and every single one of your clients. You may decide it’s time to change your tires!
