The number of customers a small business needs to be profitable is your fixed costs divided by the profit you keep from each customer. There is no universal figure, because it depends entirely on your costs, your prices, and your margins. A lean online service might need a few dozen customers. A high-rent restaurant might… Read More How Many Customers Does a Small Business Need to Be Profitable?

A business should fire a customer when the full cost of keeping them, in money, time, or damage to your team, clearly outweighs the value they bring, and when repricing or resetting the relationship has not fixed it. Firing a customer is a real strategic tool. Done thoughtfully, losing the right customer is good business.… Read More When Should a Business Fire a Customer?

A customer is no longer profitable when the full cost of serving them, including your team’s time, service, and hassle, is greater than what they pay you. The trap is that most businesses only track revenue per customer, not profit per customer. Revenue looks fine. Profit is negative. And you never see it, because the… Read More How Do You Know If a Customer Is No Longer Profitable?