Build your profitability momentum

In the early years of any business, most entrepreneurs are just glad to have clients, even those that are small and high maintenance, or the large companies that you use as loss leaders to build your name - it is all about cash-flow and building momentum. And that’s fine - for a while - but this approach is not sustainable in the long term. The secret to success is being able to identify where the business is most profitable, which clients are delivering the most income and best return on effort investment, and then focus on those.  It means perhaps letting go of those high maintenance clients that are simply not bringing in enough revenue for the business, or alternatively, raising prices to the point where it makes business sense to retain them. Profitability momentum comes from keeping a close eye on revenues and workflows, researching market rates to stay competitive and relevant, and continually evaluating effort to profit ratios.