I've been working at the service for three years now, got plenty of clients, but after all the expenses there's practically nothing left. I get that something's off with my pricing or costs, but where do I even start with analyzing this?
Start by listing all your expenses by category and calculating how much it actually costs per client - most people don't even realize what running a business actually costs.
Then look at what your competitors are charging and honestly assess whether your service can command a higher price, because if you've got plenty of clients but no money, then the problem is definitely the price, not the demand.
Try tracking not just expenses, but specifically the time you spend on each client - you'll probably find that you're blowing half your day on people who pay poorly or constantly ask for discounts and revisions. Often the problem isn't the overall numbers, but the fact that a few unprofitable clients literally eat up all your earnings from the rest.
The key is to segment your clients by profitability and honestly calculate how much you're actually making on each one after all expenses, including your own time. Usually it turns out that a third of your clients bring in half your profit, while the rest barely cover costs - and then it becomes clear who to focus on and who to drop.
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