When you have 4 businesses but only disastrous margins
And clients don't pay, don't understand, call you on Saturday
When you have 4 businesses but only disastrous margins
And clients don't pay, don't understand, call you on Saturday
Do you recognize this situation?- Four different businesses, impeccable strategy
- Revenue present, profit almost nonexistent
- "Non-paying clients" among exhausting situations
- "Clients who don't perceive value"
- "Clients who contact you Saturday or Sunday"
The trap of multi-business dispersion
Strategically you're impeccable.
Written vision, written mission.
Complete business plan.
Clear ideal client.
Significant growth.
Revenue present.
Profit almost nonexistent.
It's not business.
It's poorly paid volunteering.
And you have four different businesses:
Administration outsourcing.
Technical services.
Office by the hour.
Playroom by the hour.
**You're managing four startups simultaneously
with nonprofit margins.**
Why it happens
You confused diversification with success.
Four different businesses seem like:
More income streams.
Distributed risk.
Complete offering.
But in reality they're:
**Four undercapitalized activities
that cannibalize each other.**
Each business requires:
Specific marketing.
Dedicated operations.
Separate investments.
Different clients.
You with zero employees:
You're administrator for some.
Project manager for others.
Office manager for others.
Playroom coordinator for others.
You're generalist in everything.
And disastrous margins confirm:
**You're selling time at wrong price
to wrong clients.**
The method
Brutal kill decision
Profitability analysis per individual business.
Which has best margins?
Decision within thirty days:
Core: one business with best margins.
Kill: two businesses with worst margins.
Maybe: one potential, frozen.
Focus on one only.
Real costs analysis.
Repricing: increase prices significantly.
Client who "doesn't perceive value" at low price: fire.
Better less revenue with healthy margins
than much revenue with disastrous margins.
"Non-paying clients": business cancer.
Policy: client doesn't pay within established time, suspension.
No exceptions.
"Clients who contact saturday sunday": hours policy.
Who protests isn't right client.
With correct margins you can afford collaborator.
Without margins you can't hire anyone.
Goal "travel" romantic but unrealistic with almost null profit.
First fix business.
Then reduce hours.
Then travel.
Traveling now is escape, not solution.
What changes after
You no longer have four businesses dispersing you.
You have one profitable core business.
Not chaotic diversification.
But profitable specialization.
You no longer have non-paying clients.
Clear policy: who doesn't pay exits.
Who contacts weekend: clear hours.
Who "doesn't perceive value" at low price: fired.
Only clients who pay right price remain,
respect time, understand value.
You can finally delegate.
Healthy margins allow hiring.
Collaborator manages operations.
You: strategy, high-value acquisition, supervision.
And after: you reduce day and travel.
Not because you have four growing businesses.
But because you have one business that works
without draining you.
Financing plus grant?
With disastrous margins: unsustainable debt.
With healthy margins: sensible investment.
Most of family income depends on business.
Before: almost null profit equals poverty.
After: tripled profit equals stability.
You build prison where you work hard
to earn nothing.
Perfect vision, mission, business plan?
Useless if economics don't work.
Significant revenue growth with collapsing margins:
Not success.
It's failure in slow motion.
**One profitable business
better than four losing businesses.**
Do you recognize yourself in this situation?
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