Preventing scope creep may save you hundreds, even thousands of dollars

As the recession digs deeper and deeper into the pockets of small business owners, many have begun to question whether they should raise prices for their products and services to [...]]]> Does time become more valuable in a recession?
Sometimes change begins at home

Preventing scope creep may save you hundreds, even thousands of dollars

As the recession digs deeper and deeper into the pockets of small business owners, many have begun to question whether they should raise prices for their products and services to help cover losses, or reduce prices in attempt to attract more business.

A recent thread at the Small Business Ideas Forum [ Recession Survival Strategies ] shows how heavily the question is weighing on the minds of small business owners.

While there is no clear-cut answer to whether your pricing structure should change (since the economy is effecting individual industries differently), before passing losses onto your clients you may want to take a closer look at your business practices first.  Ask yourself,  “How much time am I giving away”, and put measures in place to begin investing that time in new clients, new ideas, and possibly a second venture.

Mitch Thrower, author of  ”The Attention Deficit Workplace” states: “If you’re wasting your time or your attention, then start investing it wisely.”

Now is a great time to take stock and re-evaluate what you are doing with your time… your most valuable asset!

For some people that may mean sacrificing t.v. time to start a second business venture from home that can be developed and grown in the evenings. It is easier then ever to start an online business. There is a plethora of software available that is geared towards people who are not necessarily “computer savvy”. Time will definitely need to be spent promoting the online business, however, and that’s where the t.v. time comes in.

For others, especially those in project oriented and service related industries, you may be able to recover some of your losses by simply doing a check-up to determine whether you have fallen victim to “scope creep”.

Scope creep (also known as “kitchen sink syndrom”) refers to projects wherein the scope of the project grows in increments due to lack of planning, definition, and straying from the original purpose of the project. Giving away 15 minutes here and ½ hour there adds up!

Projects and tasks that have “drifted” or become overly time consuming can result in business losses. If you have problems with projects overrunning their allotted time frames, or consistently being drawn “off target”, then your business can definitely benefit from taking stock of those areas and putting measures in place to avoid creep.

Keep the creep away by:

1.  Honoring your budget. Do the best job you can within the budget you and your client have agreed upon. If you simply cannot stop yourself from giving away extra services or extra time, then raise your prices and market yourself as someone who does provide those extras.

2. Take great care when defining the scope of a project. Spell out, in writing, that any changes to the scope of the project WILL result in additional charges and potentially a delay in the completion date. Then, stick to your guns!

3. Use a timeline with “landmarks” to make sure you are staying on task and not overspending your time.

4. Work on your communication skills. Make sure that, as much as possible, you and your clients are on the same page.

To quote M. Scott Peck,  “Until you value yourself you will not value your time. Until you value your time, you will not do anything with it.”

About the author:

Perry Silverberg is the owner of cardpay.net and a registered agent of Money Tree Merchant Services. With years of experience in the merchant account industry, Mr. Silverberg enjoys helping others succeed in their business ventures, as well as providing one-stop payments solutions including credit card machines, merchant accounts, and credit card processing software.