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.
I'm no business consultant, but from my experience working as a vet I'll tell you - first you gotta honestly calculate all your expenses: rent, employee salaries, materials, utilities, taxes. Then divide that by the number of clients you get in a month and figure out what your actual cost per service is. Turns out a lot of times prices are set completely without any calculation, just eyeballed or just copied from competitors. After that either raise your rates or find ways to cut costs - but not by cutting corners on quality, obviously.
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