As you review your P & L statements at the end of the year, it’s a great time to think about your income streams. Are there certain products or services that aren’t bringing you as much profit as you expected? Are there some offerings you are simply just tired of doing and it’s not worth it to offer them anymore?
One of the major pitfalls of first starting out in a culinary business, is you feel the need to be everything to everyone. At least that was the case for me. When I first started as a personal chef, I felt like I had to offer cooking classes, pantry makeovers, grocery store tours and I had so many offerings it became overwhelming. Not only for me, but also for people looking to hire me. They weren’t sure what I really specialized in and there was no real focus. Remember, a confused person doesn’t buy.
Now I’m not saying you can’t have multiple services and products, but if you’re just offering them because you feel obligated, then you’re doing it wrong. You should really only offer what makes sense for your brand and for the growth and direction you’re trying to take your company. Once I got rid of my other random offerings like grocery store tours and pantry makeovers, I was able to focus more on selling my personal chef services and catering which actually made me money.
So how do you know which income streams you should keep or get rid of? There about 10 different criteria I have my coaching clients ask themselves to help them figure it out…
- It’s beneath your growing fee structure
- Work is not challenging
- You’re in an area that is no longer growing
- You don’t like it
- Very few people buy it despite everyone saying they wanted it
- Takes too much time for the return on investment
- Doesn’t fit with your company values or personal beliefs
- Not within your strategic and long term plan
- It cheapens your brand
- You simply don’t want to offer it anymore
Once you have a better idea of what you really want to offer, you can fill out this worksheet to help you plan for more consistent income throughout the year. I use this worksheet at my Sharpen workshops and also with my coaching clients to help them plan for the new year.