by MHolland | Oct 17, 2025 | Business Tips, Cash Flow, Selling Tips, Systems
Why Are Business People So Price Sensitive?
If I walked up to ten business owners right now and told them to raise their prices 5%, what do you think they’d say?
“No way! My customers will leave!”
Then comes the usual backup excuses:
“My competitors already charge less than me!”
All your competitors?
“Well, no… but a lot do.”
That’s where the thinking goes off the rails.
Price only matters when everything else is equal. The only time price is truly the deciding factor is when you’re selling a commodity—or when an entire industry has trained its customers to shop solely on price.
Most business owners act like they’re selling a commodity when they’re not—at least not in the eyes of their customers.
When You’re the Customer
When you shop, do you pick solely based on price? Rarely.
If all else is equal, sure, you might go cheaper. But in most cases, you’re looking for:
And when those things show up, price stops being the main issue.
The Only Viewpoint That Matters
If you’re basing your prices on one of these two perspectives, you’re dead wrong:
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Your cost structure
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Your competitors’ prices
The only perspective that matters is your customer’s perception of value.
When you buy something, do you care what it costs the seller to make it? Of course not. You’re focused on the value it gives you.
Imagine someone saying:
“Our prices are higher because our utility bills and staff costs went up.”
Crazy, right?
Customers don’t care about your costs—they care about the outcome, the solution. People don’t buy a drill; they buy the hole the drill creates.
Why Customers Really Leave
Here’s what research shows about why people stop buying from a business:
That totals 32%.
So why do the other 68% leave?
Perceived indifference.
That word perceived matters. Business owners often say, “We love our customers.” But if the customer doesn’t feel it, they leave.
It’s like a husband saying, “Of course I love you. If that ever changed, I’d let you know.”
It doesn’t work in marriage, and it doesn’t work in business.
You can’t assume loyalty just because they’ve been with you for 15 years. If they stop feeling cared for or valued, they’ll move on to someone who shows them they matter.
What the Numbers Reveal
Let’s talk numbers.
Suppose your gross margin is 30%. That means your cost of goods sold is 70%.
If you discount your prices by 10%, you’ll need to increase your sales volume by 50% just to break even.
That’s a dead-end strategy.
Now flip it. If you raise your prices by 10% at the same margin, you could lose 25% of your customers and still make the same profit as before.
In reality, if you’re adding genuine value to loyal clients, you’re unlikely to lose much of anyone.
The Real Game: Value, Not Price
Most accountants push cost-cutting and discounting as the path to profit.
That’s a losing game.
Our approach?
We help clients increase their value package—so they can confidently charge more based on perceived value, not cost.
Because when customers see real value, price stops being the conversation.
Thanks for reading.
If you want to shift your business from price pressure to value power, start by asking yourself:
“What do my customers really value—and how can I show them they’re getting it?”
by MHolland | Oct 10, 2025 | Business Tips, Cash Flow, Systems
Most businesses produce, at minimum, a Balance Sheet and an Income Statement.
Beyond that, not much gets measured.
But how do you even know what to measure?
There are dozens of things you could measure — but that doesn’t mean you should.
For example, in our firm, we don’t measure hours, even though we’re a professional service business.
We measure results — the deliverables promised in our Fixed Price Agreements.
Why?
Because people don’t buy hours. They buy outcomes.
And just like our clients, we don’t pay our contractors for time — we pay for results.
Step 1: Define Your Critical Success Factors
Before you can measure anything meaningful, you have to define your Critical Success Factors (CSFs).
Let’s break that down:
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Critical — without it, you fail.
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Success — it’s something you must get right to succeed.
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Factor — a fact or situation that directly influences a result.
Put simply:
A Critical Success Factor is something that determines whether your business will succeed or fail.
For us, it’s simple — if we don’t deliver results to clients, we fail.
If we just show up saying, “We worked 100 hours, please pay $X,” nobody cares. Clients pay for outcomes, not effort.
Step 2: Turn Your Success Factors into KPIs
Here’s the key point:
You can’t measure a Critical Success Factor directly — it’s too broad.
You can only measure a Key Performance Indicator (KPI) that reflects it.
Example: FedEx
Customers don’t care about logistics complexity. They care that the package arrives fast and on time.
FedEx figured that out by talking — and listening — to customers.
We did the same thing back in 1997.
When we asked clients what mattered most, they told us they wanted Fixed Price Agreements.
Why?
- They know the price upfront — no nasty surprises.
- They can hold us accountable for results.
Who Always Has KPIs?
Two types of organizations never skip measurement:
- Successful sports teams
- Successful large businesses
Both measure relentlessly against their critical success factors.
Imagine a sports team that doesn’t track player stats, win-loss ratios, or training metrics.
Impossible. They wouldn’t last a season.
Yet small businesses do this all the time — operating without real measurement beyond the financial statements.
Step 3: Discover Your Critical Success Factors
Here’s the simplest way to uncover them:
- Find what frustrates customers in your industry.
Ask: what do people hate about working with businesses like yours?
Take contractors, for example.
Most homeowners complain about:
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Showing up late.
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Leaving a mess.
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Sloppy work.
Now imagine the opposite:
Your team shows up on time, in clean uniforms, and leaves every job spotless — even using their own dustbuster.
You’d stand head and shoulders above your competitors.
2. Ask your customers tough questions.
Try these:
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“What don’t you like about our service?”
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“What are we getting right?”
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“If you owned our business, what would you improve?”
The answers are gold. That’s your roadmap.
Step 4: Build KPIs That Flow from Those Factors
Once you know what customers truly value, you can design measurable indicators.
Using the contractor example:
Your KPI could be the percentage of job sites that pass a post-job cleanliness check, verified by a daily photo or checklist.
Whatever your business, tie your KPIs directly to what customers care about most.
Step 5: Measure, Share, and Manage
If it’s not measured, it’s not managed.
And if it’s not shared, it won’t stay top of mind.
Build a simple dashboard with your KPIs and review it daily, weekly, or monthly — depending on your business rhythm.
Because what gets measured, gets managed.
A Few Core KPIs to Start With
Here are universal metrics that apply to nearly every business:
- Number of new customers each month
- Number of sales contacts or leads
- Conversion rate from leads to customers
- Average frequency of customer purchases
- Average transaction value
Track them. Discuss them. Act on them.
That’s how you move from running blind — to managing with clarity.
Thanks for reading.
If you take one thing away, make it this:
What gets measured gets managed. But only if you’re measuring what truly matters.
by MHolland | Oct 3, 2025 | Business Tips, Systems
As many of you know, I’m a big fan of the Freedom app—I use it daily. What I like most is that it works seamlessly across all devices—phones, computers, iPads—covering everything in one simple tool.
This week, I want to share two excellent posts from the Freedom team.
The Power of a Fresh Start
One of their recent blogs explores the idea of a Fresh Start—not just at New Year’s, but at any moment you choose. Morning, midday, bedtime—whenever you decide.
Personally, I find this idea especially useful after a crisis or stressful series of events. It’s a reset button for the mind.
I came across a Latin phrase that captures this perfectly – “Nunc Coepi”—meaning “Now I begin.” It was popularized by Catholic priest Bruno Lanteri as a reminder to let go of the past and start again, right here, right now.
That perspective has helped me more than once when things felt overwhelming.
👉 [Read the blog: The Fresh Start Effect]
Rebuilding Focus in a Distracted World
The other post tackles focus. Studies show our average attention span is now shorter than a goldfish—around eight seconds. Alarming, but not permanent.
The solution? Practice focus in short, intentional bursts. Start with 25 minutes, then stretch the time gradually.
Another practical tip: try reading a full chapter of a classic book (say, A Tale of Two Cities) in one sitting. It’s a surprisingly effective way to strengthen focus and patience.
👉 [Read the blog: Overcoming a Short Attention Span]
Final Thought
Whether it’s starting fresh after a setback or sharpening your ability to focus, these practices have one thing in common: they help you take control of your day instead of letting distractions or setbacks control you.
Thanks for reading…
by MHolland | Sep 5, 2025 | Business Tips, Selling Tips, Systems
We all know service is the key ingredient in running a successful business. But how important is it really?
Recently, my wife and I spent a few days at a hotel that, on the surface, was jaw-dropping. Unique. Special. Remarkable. We’ve stayed in boutique hotels around the world – from Kenya to Europe – and some of them left us with unforgettable memories. Almost always, the reason wasn’t just the architecture or location. It was the service.
A Factory That Never Was
This particular hotel had invested heavily in its design. The theme – an “old factory renovation” from the 1800s. From the moment you arrived, you felt transported. A rail line embedded in the walkway. Black-and-white photos of factory workers. Rusted tools in display cabinets. Cracked windows, faded tiles, furniture that looked vintage but wasn’t. Every detail was carefully manufactured to create the illusion of history.
And I’ll admit – they nailed it. The place was stunning. Except for one fatal flaw.
When Service Kills the Experience
From the first meal, the service fell flat. Staff moved around like they were heading to a funeral. No warmth. No welcome. We had booked for a week but quickly felt unwelcome.
One example stands out – we asked to see a different room type for a future stay. The front desk clerk acted like a prison guard, scolding me for touching the bedspread. “Do not touch the bed! We’ll have to call the cleaners again!” (For the record, my hands were clean. 😂)
Almost every interaction felt upside down. We were the ones making small talk and trying to spark smiles. By the end of the first day, we cut our stay from one week to one night. At checkout, they even tried to charge us a penalty for leaving early.
To their credit, when we asked to see the manager, she was gracious, apologetic, and quick to waive the fee. I truly hope she can help turn things around. The investment in infrastructure and design was a clear labor of love. But without service, none of that matters.
The Lesson
Here’s the point – service is everything. You can have the most beautiful product, the slickest office, or the most advanced systems. But if your service is cold, inconsistent, or dismissive, your business will suffer.
The opposite is also true: with outstanding service, customers will forgive imperfections, delays, and even the occasional mistake. Because they feel cared for. They feel valued.
Want your business to soar? Build service standards that make people say, “I’ve never felt taken care of like this before.”
Bottom line: Infrastructure gets attention. But service wins loyalty.
A Side Note on Productivity
On a another note, I just read a powerful blog post from the Freedom app team on reclaiming time with digital minimalism. They show how you can gain an average of 2.5 hours per day simply by managing your app use. A great reminder that just like service, small changes in behavior can deliver outsized results.
👉 Read it here.
by MHolland | Aug 15, 2025 | Business Tips, Cloud-based Accounting, Systems
You’re either going to automate or you’re going to hire more people.
There is no third option.
The business graveyard is full of companies that clung to manual processes because “that’s how we’ve always done it.” They didn’t die because AI took their jobs. They died because they refused to adapt.
One of the hot topics these days is whether AI will wipe out a massive number of white-collar jobs.
The short answer? No, it won’t.
Why not?
Because automation has been happening for centuries — and people are still working. Not just in manual or service jobs, either.
Take aviation as an example:
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In the 1800s, there were no pilots.
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In the 1950s, were there proportionately more pilots or fewer than today in 2025? Clearly fewer.
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Are airplanes more automated and computerized now than in 1955? Absolutely.
Automation didn’t kill the airline industry — it helped it explode. It enabled more flights, more routes, more passengers, and more jobs.
The same principle applies today. Automation doesn’t destroy opportunity — it destroys complacency. If you don’t keep up, you get left behind.
The Accounting Example
In just the past 15 years, we’ve seen accounting software evolve to:
- Pull all the details from source documents and even suggest where to post transactions.
- Pay all bills online — no more cheque printing or mailing.
- Reconcile banks daily through automated feeds.
- Integrate operational software directly into accounting systems.
- Route bills to department heads on their smartphones for quick approval.
Has this wiped out accounting jobs? No.
It’s shifted the skill set. Today’s accountants need more focus, more adaptability, and stronger critical thinking. Those who embraced the changes thrived. Those who didn’t? Marginalized and sidelined — just like buggy whip makers when the car came along.
Automate or Hire — Pick One
If you run a business, here’s the real question:
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Can this process be automated?
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Is there cloud software I can buy to do it?
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Can I connect my operational data directly to my accounting system?
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If no off-the-shelf solution exists, can I hire someone to build it?
If you choose not to automate — or think it’s too expensive — then you have no choice but to hire people.
Now compare the costs. Is it more expensive to bring on more staff, or to invest, say, $30–$50K in software that eliminates bottlenecks and stops duplicate data entry?
Data duplication is one of the biggest wastes in any business. Every time the same data is keyed in twice, error rates go up. That’s not theory — it’s a law of averages.
How to Fix It
- Ensure accuracy at the source. Hold the person entering data accountable for getting it right the first time.
- Validate at the managerial level. Don’t just trust the input — verify it.
Do this across all your data flows, and errors drop dramatically.
The Payoff
Run the numbers. A one-time $50K investment in automation can pay for itself in less than a year compared to the ongoing cost of a full-time data-entry hire. And unlike a human hire, automation doesn’t take sick days, quit, or need training every six months.
The bottom line: Automate where you can. Hire where you must. But don’t waste money doing what software can do better, faster, and more accurately.
Thanks for reading…
by MHolland | Jul 31, 2025 | Business Tips, Systems
If your business feels like it relies too much on you—or a few “star employees”—it’s a sign you’re missing two critical tools – Performance Standards and a Playbook.
These two elements are the foundation of a business that runs smoothly, trains new staff quickly, and delivers consistent results. Most companies only have one (or neither). Here’s how they work—and why you need both.
Performance Standards – Defining “What Great Looks Like”
Performance Standards (PS) are outcome‑driven. They define the operational and service results you expect from a process or a role.
Think of them as the bar your team must clear. They focus on results, not steps, like:
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Delivering on time
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Maintaining quality and accuracy
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Completing work without rework
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Creating a great service experience (how phones are answered, how emails are written, or the “extras” that delight clients)
Good Performance Standards are measurable. Here’s an Accounts Payable (AP) example:
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Zero payments without a 3‑way match (PO, invoice, receipt)
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99% of vendor bills entered within 2 business days
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Payment runs Wednesdays only, early‑pay discounts captured if ≥1.0% effective annualized
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Exception rate <2% per month, all exceptions resolved in 5 business days
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Fraud controls: dual approval for any payment >$10k; vendor master changes segregated
A Performance Standard is not a motherhood statement; it is something measurable in physical reality. If you can’t measure it, you can’t manage it—and Performance Standards give you the yardstick for accountability.
Playbook – Making the Work Repeatable
If Performance Standards are the “what,” your Playbook is the “how.”
A Playbook is a step‑by‑step guide or checklist that ensures your team can consistently hit the standards—even when you’re not in the room.
Continuing with the AP example, a Playbook might include:
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Invoice intake: where they arrive, naming convention, and upload to Xero/HubDoc
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3‑way match SOP: screenshot‑rich walkthrough in ApprovalMax with edge‑case examples
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Payment‑run checklist: start‑to‑finish steps plus what to do if the bank file rejects
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Vendor setup process: template emails, required banking data, and sample remittance PDFs
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Payment method decision tree: when to use Plooto vs. wire vs. cheque, including FX handling
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Weekly reconciliation routine: report template, exception log, and sign‑off process
A strong Playbook turns tribal knowledge into documented knowledge, making it easy for any trained staffer to perform consistently—and for new hires to get up to speed fast. What is tribal knowledge? It is the stuff people keep in their heads on how they perform processes. The problem? When they leave, the knowledge leaves with them, and you are back at ground zero, with your replacement hire.
Why You Need Both
Businesses often get stuck because they only have one side of the system:
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Standards with no Playbook: You know the result you want, but everyone does it differently. Errors and inconsistency creep in.
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Playbook with no Standards: People follow steps, but you don’t know if the outcome meets expectations. You get activity, not results.
When you have both, you create a system that:
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Sets the bar (Performance Standards)
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Shows the way (Playbook)
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Makes results measurable and repeatable
This combination is what allows your business to scale without stress, protect quality, and remove dependency on any single person.
Take Action in Your Business
If you’re ready to stop firefighting and start scaling, here’s where to begin:
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Write 3‑5 clear Performance Standards for each critical process.
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Track performance weekly so everyone knows if the standard is met.
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Build a simple Playbook so any trained team member can hit the standard every time.
When you combine clear standards with a repeatable playbook, your business becomes trainable, scalable, and a whole lot easier to manage.
Thanks for reading…
