One of the best things about owning a small business is your ability to generate income by doing a job that you love. However, there is a downside. Expenses. Expenses can wreak havoc on a company’s profit margin. In order for wedding entrepreneurs to stay in business, they have to push past their own hangups and concerns to not only sell their product/services, they have to control and/or charge for the expenses incurred. If you don’t, you are ”leaving valuable money on the table.”
Here are five (5) simple ways entrepreneurs, like you, can leave money on the table (and how to avoid it)we
1. You Give Away Your Time to Your Clients.
Your time and your knowledge are precious commodities. When you provide services that are not a part of your scope of services (aka scope creep), you are giving away revenue AND you are reducing your opportunity costs. Detail your scope of services in your contract and refer to them when you are asked to perform a task that’s not included. You don’t have to say no to completing the task, but you should send an invoice before you carry out the work.
2. You Don’t Outsource.
Some entrepreneurs may not feel comfortable spending their revenue dollars on outsourcing because it’s money spent up front. That’s understandable, but know that outsourcing will help you reclaim your time, alleviate your stress, and if you manage it well, it could help you generate income. So, take a look at the tasks that eat up your time, but don’t generate income. That’s the work that should be outsourced first.
3. You Don’t Upsell Your Services Before the Contract is Signed.
Don’t let “money hang ups” or insecurities prevent you from selling an upgrade. You may find that your upgraded services will be just what your couple needs to overcome an obstacle or address a “pain point.” AND, truth be told, most couples are willing to pay more for a premium service if they can see the value. So, focus on the benefits of ALL of your services at your next consultation. Your upgraded service might be your competitive advantage.
4. You Consume Too Many Expenses.
When you determine the fee for your products and services, are you including the ancillary expenses you typically incur for each event? And, before you say you don’t want to “nickel and dime” your couples, know that you can build those expenses into your overall fees beforehand. Here are some examples of ancillary expenses.
- Overnight Accommodations
- Travel Expenses, such as Mileage or Flights
- Equipment Rental
- Rental Trucks
- Parking Expenses
- Additional Staff Needed for a Unique or Extensive Set-Up (Planners! I am talking to you too!)
- Staff Meals
- Last Minute Supplies
5. You Don’t Follow Up With Your Couple After the Wedding Is Over.
Contrary to what you might think, your couples don’t have to be “one time clients.” Follow up after the wedding to thank your couple for their business. Ensure they were happy with your services. Ask for a review. Share details about your services available for legacy clients. Retaining a loyal, happy client will cost you a lot less than acquiring a new one — So, take the time to stay in touch.
Love and Soul Always, Kawania
Photography: Renee Hollingshead Photography
2 Comments
Each point is absolutely correct. Thank you for reminding us.
Happy Monday Kawania!
I love seeing an email from you in my inbox! Thank you for your valuable tips, they come in handy. I’m looking forward to one day meeting in person. Have a wonderful work week and many events!