Saturday, September 13, 2014

The Number One Way to Grow your Business Overnight

The Easiest and Quickest Way to Grow your Business
There are 5 ways to grow your business – increase customers, get customers to buy more, increase the value of each transaction, increase prices or increase efficiency.

By far the quickest and easiest way, according to expert pricing accountant Peter Hill, is simply
to increase your prices. He issues a challenge to businesses – if you want to increase your profits in one, easy step, increase your prices by 5% immediately.

A quick example would be a conveyancing quote I recently had. We contacted three law firms to get a price on selling a field (sale transaction is less than £20k) and got quotes of £475, £400 and £200.

Thinking about it now – if the £200 quote had been £210 it still would have been the lowest price, and if I had been a bit distrustful of the low quote I would still have gone with the medium quote with a 5% increase at £420.

Applying this to our own business does not really work, because in recruitment most of our business is on a percentage basis and varies according to the salaries being paid, not the work put in. However to an hourly rate firm (ie a solicitors practice) this could make a big difference.

Assuming your firm (limited company) turned over £100k last year with £60k profits and paid corporation tax at 20% on the profits, you would have managed to make £48k after tax. If you increase your prices by 5% you would have turned over £105k, with £65k profits and made £52k after tax. The extra 5% price would have generated you £4k in net profit.

Not bad for just adjusting your prices slightly upwards.

The downside is of course the annoyed customer who wants to know why the price has just gone up. Peter Hill suggests that you should ignore them and concentrate instead on the vast majority of clients who are happy with the service and as a result will pay to stay.

Are you brave enough to try it? We are going to give it a go with one of our non-recruitment businesses. I’ll keep you posted with the results in 12 months time.

Jonathan Fagan is Managing Director of Ten-Percent Legal Recruitment and a non-practising Solicitor. Ten-Percent Legal Recruitment provides online Legal Recruitment for Solicitors, Legal Executives, Fee Earners, Support Staff, Managers and Paralegals. Visit our Website to search our Vacancy Database. Our Legal Careers Shop has eBooks on CV Writing for Lawyers, Legal Job Interview Guide, Interview Answers for Lawyers, NQ Career Guide, Guide to Finding Work Experience or a Training Contract and the Entrants Guide to the Legal Profession.

Cut the Clutter on your Desk and Save Valuable Time

Cut the Clutter on your Desk and save time

I recently read an article about saving time – with tips including outsourcing everything you possibly can, delegating as much work as possible and avoiding meetings. One of the tips was to reduce the clutter on your desk because looking for documents and items can take up so much of your time.
These are the three things to do with paperwork on your desk:

1. Delegate It
2. File it
3. Bin it

Apparently most of the stuff we file away never gets seen again and in fact it would have been better to bin it from the outset. There is a professor in the USA who tips all his paperwork each month into a desk drawer and at the end of the month he throws the whole lot into the bin. I think this is extremely brave and would never dare to be so bold, but it is certainly one way to get rid of stuff off your desk!

There should be no paperwork on your desk at the end of the day – instead it should be in a filing tray, an action tray or the bin. Stationery should be in a desk tidy or drawer. Go and buy some trays at lunchtime and invest in a desk tidy for your pens. It makes the world of difference turning up to work to find a blank slate rather than piles of papers.

Jonathan Fagan is Managing Director of Ten-Percent Legal Recruitment and a non-practising Solicitor. Ten-Percent Legal Recruitment provides online Legal Recruitment for Solicitors, Legal Executives, Fee Earners, Support Staff, Managers and Paralegals. Visit our Website to search our Vacancy Database. Our Legal Careers Shop has eBooks on CV Writing for Lawyers, Legal Job Interview Guide, Interview Answers for Lawyers, NQ Career Guide, Guide to Finding Work Experience or a Training Contract and the Entrants Guide to the Legal Profession.