Running A Small Business and Establishing Services At A Reasonable Cost

It always amazes me to see how many businesses still charge by the hour – it is a business killer. How do you like it if someone comes to quote for a job and then tells you he/she is charging you by the hour. You will have all or at least a number of the following thoughts:

• How many hours will it take this person, can I afford this?

• I don’t know this person, I don’t know how good he/she is at what they do?

• Great, I am taking all the risk here, he or she can take as long as they decide and I’ll have to pay!

The truth is that charging by the hour is terribly customer unfriendly and is therefore very bad for your small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Partnership business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants.

By charging by the hour you are making so many barriers to doing business that your chances of securing the order is very small, if you are competing with someone who can offer fixed pricing you have virtually no chance of getting the order. So if you work in an industry that charges by the hour and you need more work you now know what to do. Business to business contractors may wish to consider purchasing Photo ID Cards.

In my experience you are able to charge more if you charge a fixed fee and get organized. I believe that more accountants and solicitors loose work because they charge by the hour, the client relationship degrades and then breaks down altogether.

I talk a lot about outsourcing as a way to expand small business turnover and small business capability, but we can also talk about Budget co production!

For Photo ID Cards at competitive prices click link.
Outsourcing means several businesses that are working together, to service more customers than they could service by themselves. If you think only small business does this, think again.

Generally all big parts manufacturers, furniture manufacturers, and other big business do it daily.

Value Co-production means that you, and your outsourcing partners, are able to give discounts to customers so they build their own product. You effectively sell a kit of whatever it is you manufacture. This is often commonplace in the furniture industry, look at IKEA, Homebase, etc. When they talk about flat packs they are talking value co-production, with benefits to the customer:

1. Lower Price – in return for their personal work input;
2. Transport – the items usually fit into in your own car;
3. NOW factor – customers can take the merchandise immediately, no waiting for delivery.
Some of the benefits for your small business are:
1. Less Cost – due to shorter manufacture cycle;
2. Increased Manufacturing Output – due to shortened manufacture cycle;
3. Larger Turnover – products become more competitive in price;
4. Less Transport Cost – due to smaller items being shipped.

P.S. You need to know alternative solutions to money making problem and I need money now question. Your business cannot deserve to miss an extra way to make money.

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