How to Maximize Your Profit in a Slowing Economy
About this episode
When the headlines say the economy is slowing, it’s easy for owners, and their teams, to start thinking small: holding back on marketing, skipping the upsell, cutting the wrong costs. That mindset can slow your business down faster than the economy ever could.
In this episode, Kerry shares three practical steps for home service businesses to protect and grow profit in any economy: double down on your most profitable services, cut the fat without cutting the bookkeeping you rely on, and use Profit First to keep paying yourself and setting profit aside.
Listen now on:
Key takeaways from this episode
- Don’t let talk of a slowing economy shape your mindset or your team’s.
- Double down on your highest-margin services and find out why others underperform.
- Review expenses quarterly, renegotiate with suppliers and check your pricing.
- Don’t cut your bookkeeping: tough times are when you need accurate numbers most.
- Keep paying yourself and setting profit aside with Profit First.
Show notes
Mindset first
Kerry explains why she hesitates to even use the phrase “slowing economy”: dwelling on it can talk you, and your crew, into pulling back. Keep over-delivering, keep marketing, and keep your team upselling where it helps the client.
Step 1: Focus on your most profitable services
Use your numbers to find your highest-margin services and double down on them. For jobs that underperform, ask whether it’s training, tools, pricing, or a loss leader that isn’t converting into more profitable work.
Step 2: Cut the fat
Run lean all the time. Review expenses every quarter, especially subscriptions, ask suppliers for better terms, and consider whether it’s time for a price increase.
Why not to cut your bookkeeper
When owners look for savings, bookkeeping is often the first thing to go. Kerry explains why that backfires: without up-to-date, accurate books, you lose sight of problems and end up making decisions on gut feel or your bank balance.
Step 3: Profit First
Set profit aside, keep paying yourself and run as lean as you can. Cutting your own pay and dipping into personal savings only puts you in a worse position. If the numbers don’t work, it’s a sign to increase revenue or reduce expenses.