A good business can still be
the wrong engine.
I learned this the expensive way. I built a coaching business I believed in, and when I finally counted the hours it took to win each client against what each client was worth, it paid about what an off-duty shift does. Working harder would only have made the loss bigger. Run your idea through the same math before you spend a year on it.
How it works: a customer's value is what they pay over the time they stay, minus fees and direct costs. Their cost in hours is the time to win them plus the time to serve them. Divide one by the other and you have the real hourly wage of the business. At capacity, part of your hours goes to replacing the customers who leave. Education, not financial or tax advice.
See all the tools, or go back to The Way Out.