Do This To 3X Your Profits Quickly [Spoiler: It's Simple]
A few weeks back, I had a client who was stuck at $2,000–$3,000/month in revenue… but here’s the shocking part: 👉 his actual profit was only $300–$500/month. Why? Because he had hired 8–9 employees/service providers just to keep his business afloat. They were underpaid, underperforming, and worst of all — they weren’t even getting great results for his clients. On the surface, it looked like growth: more clients, more team members, more activity. But in reality, it was a hamster wheel business — busy, but going nowhere. The Profit Illusion Most Entrepreneurs Fall Into Many entrepreneurs confuse revenue growth with profit growth. But the math tells a different story: 📊 According to a U.S. Small Business Administration report, only 40% of small businesses are profitable at any given time. The rest are breaking even or losing money. 📊 In service businesses, profit margins typically range from 10–20%, but I see many beginners operating at under 5% because they undercharge and over-hire. And that’s exactly what my client was doing. He had plenty of clients — but because he charged extremely low service fees, he needed more and more clients just to hit his modest revenue target. That, in turn, required more employees, more management, and more complexity. Result: High stress, low profit, zero scalability. The Hack: Raise Your Prices This is the part you probably won’t do. But it’s the single fastest way to multiply profit margins. When you increase your service charges: You directly impact profit. Example: If you go from charging $500/month to $1,000/month per client, your profit doesn’t just double — it often triples or quadruples because your costs stay roughly the same. You reduce the number of clients you need. $3,000/month revenue at $500/client = 6 clients. $3,000/month revenue at $1,000/client = 3 clients. Fewer clients = less overhead, less chaos, fewer employees required. You increase client quality. Higher-paying clients are usually more committed, less demanding on trivial issues, and easier to get results for.