Jack and Jill compare businesses
This is the story of Jack and Jill.
Not that story. There are no hills, or pails of water, in this one.
This is about Jack and Jill, the entrepreneurs …
In fact, maybe there will be a hill.
Jack and Jill went up the hill … to have a nice chat and tell each other how their businesses were going.
They’d both started out at around the same time, so were keen to find out how the other one was doing.
Jack went first.
He explained that he’d done his sums before he got started, and calculated that he wanted to earn £5,000 per month. He thought he could comfortably charge a day rate of £500, which meant he needed to sell just ten “days” per month.
“It’s going well” he told Jill. “I’m usually able to achieve my monthly target.”
“But,” he continued, “it can be a bit stressful, as I never know for certain that I will … and so I never know for certain what I’ll be earning in a month.”
“I’ve managed to get a lot of clients, which is great. But they don’t all use my services consistently, so I have to spend a lot of time looking for more clients to fill my ‘days’…”
“It means I’m working a lot more than the ten days I’m actually ‘earning’, but I guess that’s normal.”
So, he concluded. He was happy with how things were going, but he wasn’t as stress-free from money worries, nor enjoying as much spare time as he’d hoped when he set out.
And then he asked Jill how she was getting on …
Well, Jill had also done her sums, and also calculated that she wanted to earn £5,000 per month.
But rather than calculate how to earn this via a day rate, as Jack had, Jill had calculated this by number of CLIENTS.
She had decided she specifically didn’t want lots of clients. She thought that sounded much harder work. So she decided she would work with just five clients. No more. Which meant each client would need to pay her £1,000 per month.
In order to get five clients to commit to paying her this every month, she designed a package … a service … that was worth much MORE than this.
She looked at the SOLUTIONS she was able to provide to her clients, and calculated the value of her providing these solutions to their “problems”.
Even more so … she looked at the COST to her clients of those problems NOT being solved. And she calculated THAT value.
She knew that by only having five clients, she would be able to focus 100% on their needs, and provide a service far beyond what she could offer if she had to split her time between more clients. Or, if she had to spend more of her time looking for new clients.
So she worked her offering into a very attractive package; one that would not only meet her potential clients’ standard needs, but would also save them money in the long run. She created a package that could easily be valued as being worth £3,000 month …
And as a result, it didn’t take her long to find clients that were happy to pay just £1,000 a month for this great value service.
“So,” Jill told Jack, “I’m thrilled with how things are going…”
“I earn £5,000 every month, and know that I will, so there’s no inconsistency in my earnings. I have plenty of time to dedicate to each of my clients, and I know them and their needs inside out, as there are only five of them. So they are thrilled with my service.
“I don’t need to spend time marketing, or drumming up new business, as I have the five clients and the £5,000 per month that I wanted. So my work–life balance is also great.”
“All in all,” she concluded, “I couldn’t be happier.”
Jack had to admit. Jill’s business model seemed rather more appealing than his …
She had designed her own business to give her EXACTLY what she wanted.
It was exactly what he wanted, too … but he was busy, with uncertain income each month … whereas she had consistent income, and just a few, regular and happy clients.
Their chat had been very helpful …
He had assumed that lots of income meant lots of clients … but Jill had proven otherwise.
He didn’t want lots of clients. He wanted the income. He’d been focusing on the wrong things. Day rates and lots of clients weren’t, in fact, the best way to achieve his main goal.
Jill had made him realise that there were other options available. All he had to do now, was work out how to create them for his OWN business.
Jack wasn’t quite sure how to start with that, but he did at least feel comforted in the knowledge that he wasn’t alone in this situation. He knew that there are many people in a similar situation.
And he’s right. There ARE lots of people in exactly his situation.
And what’s more – those people … perhaps YOU are one of them? … have a benefit that Jack doesn’t …
Because if you don’t know HOW to create those other options for YOUR own business, there is a solution to THAT too – right here!
Whereas Jack, I’m sorry to say, I can’t actually help … as he isn’t actually real.
For more insights on how you can price your services as a package and move away from charging day rates, click here …