One common issue: businesses built entirely around billable hours. The model works until you run out of time to sell. We've seen consultants, designers, and specialized service providers hit the same ceiling. Revenue growth requires working more hours, which eventually becomes unsustainable.
The solution usually involves restructuring how value gets delivered. Some businesses shift to project-based pricing. Others create productized services with fixed scopes. A few develop group programs or licensing arrangements. The specifics vary, but the principle stays consistent: separate revenue from hours worked.
- Subscription models work well for ongoing services but require consistent value delivery
- Tiered pricing helps different customer segments access your services at appropriate levels
- Fixed-price packages reduce decision fatigue and make purchasing easier
- Hybrid models often provide the most flexibility during business transitions
Another insight from last year: cash flow problems rarely stem from insufficient revenue. More often, they come from poor timing between expenses and income. Businesses that solve this through deposits, milestone payments, or retainers tend to operate with less financial stress.