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Seven profit leaks and how to fix them
| Profit leak | Warning sign | Fix |
|---|---|---|
| Vague scope | Clients regularly expect more than you planned | Written scope with quantities, revision rounds and exclusions |
| No time data | You can't say which client is profitable | Log hours by client and task type for 2–3 months |
| Fear-based pricing | Prices copied from competitors or set by the client | Real hourly cost + margin; review prices every year |
| Utilization off target | Team idle some weeks, overloaded in others | Set targets per role and watch the monthly trend |
| Scope creep | Many small free extras every month | Written change request with time and cost before work starts |
| Everything custom | Every proposal and process built from zero | Turn repeated work into fixed-scope packages |
| Unbalanced client mix | A few clients drain hours or dominate revenue | Reprice, change the service model or part ways |
| Profit leak | Warning sign | Fix |
|---|---|---|
| Vague scope | Clients regularly expect more than you planned | Written scope with quantities, revision rounds and exclusions |
| No time data | You can't say which client is profitable | Log hours by client and task type for 2–3 months |
| Fear-based pricing | Prices copied from competitors or set by the client | Real hourly cost + margin; review prices every year |
| Utilization off target | Team idle some weeks, overloaded in others | Set targets per role and watch the monthly trend |
| Scope creep | Many small free extras every month | Written change request with time and cost before work starts |
| Everything custom | Every proposal and process built from zero | Turn repeated work into fixed-scope packages |
| Unbalanced client mix | A few clients drain hours or dominate revenue | Reprice, change the service model or part ways |