No One Actually Understands Capacity: Here’s Why
Episode 726: Show Notes
The One Thing That Can Make or Break Your Business
Today we are diving into what you need to get right in your service-based business. This has a dramatic effect across the board and will either make your business very successful or lead to its failure! The people getting this wrong are often the ones who are on the road to burnout, are overworked and underpaid, they feel like everything is working against them and all systems are broken, they’re not reaching their financial goals and don’t understand why, and they don’t know where all their time is going.
This may seem like a complicated issue but before you fear that all hope is lost, we are going to touch on a bunch of little things that are interconnected and all impact each other to help you. Believe it or not, all of what this comes down to is two things that have a major impact on everything else. We are addressing these things in this episode and finally having the much needed conversation to take these things deeper than surface level and ensure your businesses success!
Listen on your favorite podcast player
Behind the Scenes at Boss Project
Today we are introducing a new segment to the Strategy Hour Podcast to appease your curiosity and update you about what’s going on at Boss Project! We’ll share info about our cool projects, what goes on behind the scenes, and how we work with clients. We also want you to know about all the content that we push out. Aside from the two podcast episodes every week, we also drop two blog posts a week and are now hosting free live workshops so the content will keep coming your way! You can see this segment as a bulletin board of announcements. If something resonates with you from this episode, we would love to chat!
We recently wrapped a project for a CPA firm just outside of Texas and they were at such an amazing place in their careers when they approached us; they had just purchased another CPA practice in the hopes of adding more strategy to the clients that they were working with. This client had a very specific problem and when they purchased the business, they received the rights to the existing website. However, the website was dated, was not informative, and obviously lacked personal information about them as the new owners.
Our challenge coming in was updating their website and making it modern and on par with the 21st century as well as helping them move away from the old-school ways of the business. They wanted to come across as established, confident, and ready to take on the business while appealing to millennial business owners! This project was so much fun. We did absolutely everything from start to finish; brand design, mapping out the website, copywriting, etc. We think it turned out amazingly and we are so excited to watch them grow astronomically with their new look and feel! We are booking more websites this year so if you feel you are lacking in design, feel free to reach out to us for help!
The Art and Skill of Mastering Your Capacity
We want you to understand your capacity in such an in-depth intimate way so that you understand how everything you do impacts it. If you raise or lower your capacity, it adjusts all these other things so essentially, this is a case of cause and effect. People like to think of everything existing independently when it comes to making business decisions, but the truth is that leads to us running a business where we aren’t sure what needs to happen in order for us to reach our goals. Knowing and understanding your capacity means you are able to do things more intentionally.
Each member of a team has a different capacity for the things they are able to do even if the total number of working hours are similar. Often people don’t know what they can handle or what is reasonable for them and they end up surpassing their time capacity and as a result, want to increase their client base. We want you to know that that isn’t always the solution and is unrealistic. Having full-time team members is an expensive luxury that requires a lot of planning and time for an onboarding process. You need to get in alignment with your real capacity and correct price by ‘right-sizing’ based on your financial goals and needs before expanding your team! Doing this can grow your revenue massively and really make sure you deliver to your clients.
What to Do When Capacity Isn’t Price Dependent
For some clients, price isn’t necessarily the issue and if you’re at a different point in your business with your goals set in the quantity game, you have to focus on optimizing capacity in other ways. We want you to focus on systemizing your deliverables in a way that makes the delivery a sort of machine. Your process has to be so streamlined, seamless, and hands-off so that you can have the capacity to serve that many people. Your clients need to be paying the price-point to match the service that you are delivering. Anything can be adjusted and it is a case-by-case basis so you need to figure out what your goals are and make capacity adjustments from there.
How Charging Appropriately Ultimately Leads to Success
Based off a price increase, you are able to show up and easily provide a little bit more for your clients. Yes, these things will take up your time and increase your capacity a little bit, but when you get paid for your time appropriately, there is an inherent desire to make the experience more valuable and provide better results for your clients. Even though we think everyone can double their prices, you also need to keep in mind the psychological effects of price increases and make decisions in your decision-making zones that won’t scare your clients.
Most of the changes we suggest you make are so doable and nowhere near intimidating! Sometimes the simplest of changes can make the biggest difference but we do understand that when you are close to it, it is difficult to see what your options are. It takes a third, unbiased opinion to help you make these decisions, no matter how intelligent or good at running your business you are. That’s what we’re here for and we want to make sure that we are respectful of the kind of life you want, what your goals are, and whether or not you really want to increase your capacity. We can talk about this all day long because capacity truly does affect literally everything in your business, and all of that then affects your prices. If you need help figuring this messiness out, we would love to help you so head to our waitlist and steal some of our time now!
Quote This
When you know and understand your capacity, you can do things more intentionally.
Highlights
The One Thing That Can Make or Break Your Business. [0:13:18]
The Art and Skill of Mastering Your Capacity. [0:14:45]
What to Do When Capacity Isn’t Price Dependent. [0:24:32]
How Charging Appropriately Ultimately Leads to Success. [0:28:59]
Today’s Guest:
Abagail & Emylee
The Strategy Hour Podcast
The Strategy Hour Podcast is a twice weekly show hosted by Abagail Pumphrey and Emylee Williams, the founders of Boss Project. Join us for semi-ranty biz conversations for service providers looking to ethically grow their agency businesses. Episodes cover everything from lead generation to leadership mindset to team culture and beyond.
Key Topics:
Capacity, Pricing, Scaling, Charging appropriately, Time management, Burnout
