2 Ways to Mitigate Risk When Selling Services

As I work with founders who are in their growth stage

there is no real certainty in the future (and that’s ok!)

A forecasted pipeline, is simply that: a forecast where some deals may close as expected, while others may be push out 3-4 months (normal!)

So how do you mitigate risk when you have:
• expenses
• a team
• taxes
• and probably some hungry mouths to feed?

2 Simple Habits:

1st Habit: is what everyone talks about = sales

2nd Habit: is the unsexy topic = financial prudence

So let’s start with the unsexy first:

Using the task unit framework I teach (where you’re aiming for AT LEAST 30% {some of my teams aim for 40-60%} profitability across your entire team on all projects) you can allocate your pure profit into buckets.

Some suggestions:

• Taxes
• Company savings (3-6 months)
• Additional owner’s pay
• Growth initiatives
• Team bonding/annual retreats/bonuses

Why do this?

1 – peace of mind
2 – getting out of “feast or famine” mode

While backend prudence provides stability, at the same time, you can focus on front-end sales that drives growth & builds pipeline.

Here’s some activities I suggest

1. Warm Outreach
2. Content creation
3. Building referral partnerships