Skip to main content

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.

Comments

Popular posts from this blog

Overpaid Charity CEOs - top 40 of high paid employees - updated 2022

In 2014, we wrote an article about high pay in the charity sector after the Charity Commission started to require all charities to disclose pay of senior executives earning more than £60,000.    We have updated the list for 2022, with a comparison chart so you can see the difference between 2014 and 2022. We have included the source of the most recent salary levels and the year refers to the accounts year we extracted the salary information from.   2022 Top 40 Chart of High Paying Charities Charity Highest salary Year Consumers’ Association £390k-£400k 2020 MSI Reproductive Choices £240k-£250k 2020 Save the Children International £285k-£300k 2020 Cancer Research UK £240k-£250k 2020 The British Red Cross Society £170k-£180k 2020 Age UK £180k-£190k 2020

Is it possible to work as a Paralegal when you are a Qualified Solicitor

  This question comes up all the time and is quite a common query that we imagine the Solicitors Regulation Authority (SRA) are getting better at answering due to the sheer number of people asking the question. Many years ago the advice seemed a bit varied at times, but we have recently had a candidate who wanted to work in a locum role in the short term and waiting to go back on the Roll and get a practising certificate after some time spent outside the profession. She has been given fairly concise advice on whether she could work as a paralegal whilst waiting to be readmitted which we are repeating here. This article is written as a discussion point and is not intended to be advice in any shape or form. For full advice on your particular set of circumstances please speak to the SRA (or whoever else you like, but please do not depend on the information in this article!). The SRA have a simple online test to determine if you need a practising certificate and this i

What questions are asked in an Investors in People Assessment?

Recently Ten Percent Legal Recruitment was assessed for the investor in people accreditation. We worked very hard on this and spent some time as a company ensuring that all our procedures and policies were in place and that our staff were aware of the various requirements of the Investor in People process. We wondered how the assessment would go and also what the questions were likely to be during the interviews. The assessor was very friendly and explained from the outset what she was wanting to do and we were already aware that we would have thirty minute interviews with the directors and managers and twenty minute interviews with the staff. We also had the Investors in People programme so we were able to look and see what the actual questions would be based on, but there was nowhere to indicate what questions would be asked in the investor in people assessments. So if this helps anyone else, here are the questions we were asked in our investors in people accreditation: The assessor