What services should I stop offering because they aren’t profitable?

Determining which services to cut can be a tough call, especially if you've invested a lot of time and effort into them. The first step in this process is to capture data regarding the performance and profitability of each service. Here's a practical approach to get started:

1. Analyze Your Numbers:
2. Look at each service's revenue versus its direct costs (materials, time, labor).
3. Consider indirect costs as well (marketing, overhead).

4. If you're not sure about these figures, start by estimating your time spent on each service and how much that time costs.

5. Assess Added Value:

6. Identify services where clients consistently express satisfaction and refer others.

7. Spot the ones generating passive income or have potential for scalability.

8. Identify Energy Drains:

9. Evaluate services that consume a lot of your time or that you dread doing.

10. Services that leave you uninspired might not be worth holding onto, even if they're slightly profitable.

11. Market Relevance:

12. Are these services still relevant in the current market?

13. Is there a growing demand, or do these services represent a shrinking niche?

14. Client Satisfaction and Retention:

15. Are they leading to repeat business, or is it a one-off with most customers?

Next Steps

• Develop Transition Strategies: Before cutting anything, ensure you have a plan to transition clients who rely on these services.
• Expose Your Existing Client Base to New Offerings: This might mean shifting them to more profitable or exciting services you've been meaning to push.

Making these decisions isn't always straightforward. I vividly remember when I had to drop a service that was my initial bread and butter but had become more of a distraction as I evolved. It's crucial to redefine what success looks like for your business at this stage and make choices accordingly.

Ultimately, redefine success on your terms. Sometimes less is more, and by focusing on what's truly profitable—financially and emotionally—you can create a more sustainable and fulfilling business model.