Staying small and profitable
Over 4 million people in the UK created their own job.
More people start a business because they want to be their own boss and have choice over how they spend their time than for any thought of making a fortune or creating a business empire.
Micro businesses continue to dominate the UK with 74% (4.1m) employing no-one except the owner. (https://www.gov.uk/government/statistics/business-population-estimates-2022)
And yet, success is still measured by growth.
Support for small businesses is largely based on their perceived ability to grow and provide jobs but a lot of small businesses have no desire to grow in this way. Too many small business owners who employ people end up earning less and working longer hours than the people they employ.
What most owners really want and need is to become more profitable so that they are not in a constant state of hand to mouth existence and can enjoy a better lifestyle, paid holidays, a pension and healthcare.
You may have heard the phrase ‘go big or go home’ which is very dismissive of the 4 million people who are very much at home staying small.
When you started your business what did you want? What were your personal goals (more time, more choice?) What were your business goals (to match your last salaried position, to make enough to be comfortable?)
Growth is not necessarily a by-product of success, but profitability is.
Choosing to stay small is not synonymous with unambitious or unsuccessful. Staying small means you can concentrate on the customers and clients you really like to work with and who like you. It’s not always about finding new or more customers, but keeping those you’ve got by becoming their first choice.
You decide how much money it will take to live the life you want and how much time you will need to spend on your business to earn it and then set your prices accordingly.
Pricing is an art, not a science and its a crucial aspect of running a business that creates freedom or keeps you trapped on a hamster wheel of never having quite enough.
If you’d like to talk about your pricing strategy and how to create more freedom in your life and your business just get in touch
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