Gabby built a six-figure coaching business alone, then hired staff and watched revenue crash from $30-40K monthly to $10K. The problem: her new hires were inexperienced and untrained, so service quality dropped, referrals dried up, and she couldn't keep up with demand.
I ran myself into the ground. Like, I need people to help me do this.
Is this your whole business? Yeah. Okay. Um, you have a decision you have to make. Gabby, what's up? How are you?
I'm good. How are you?
Excellent. So tell me about the business. I coach volleyball.
I grew the business solo over the course of a year to a 6-figure business. I have a brick and mortar and I have a digital site. So the brick and mortar is very labor intensive. I ran myself into the ground. Like, I need people to help me do this.
What's revenue right now?
My revenue has dropped from $30,000 to $40,000 down to $10,000 after hiring people.
Well, that's bad. Right now I'm around $10,000, I know. Costs go up, revenue goes down. No bueno. Exactly. What did you stop doing when you hired these people?
I stopped doing all the services myself.
Okay, and so as a result, word of mouth stopped because they're not as good as you.
Not that they're not as good, they're new.
Well, they're not as good. So I have to train. They're not as good, right? They're not me. They're not as good. Yeah, we got to be able to speak plainly, right? They're not as good. Okay, you have people who are delivering the services. As a result, they're not doing as well, and since they're not doing as well, you're not getting referrals.
Not getting referrals and not able to handle any demand in the business.
If I transported my brain into your body and I had to take over the wheel today, I would be saying, okay, I did $40,000 a month when I was killing myself. I would like to do $20,000 a month, except I'll raise my price. Your pricing lever is the one that you're not using because you said you had oversold demand. So I'd raise my price and I'd cut my time in half. Do we like that plan? Got it. I like that plan. Yes. Okay, good. I love this plan for us.
