Mitch and Adam are in the local pest control business. They both offer similar services – you know…commercial and domestic, termites, cockroaches, bed bugs and the like and they both work in the same basic area in western Sydney.
Adam is flat-out. He gets a constant stream of new customers and phone calls, and he’s looking to put on another ute to service the new business he’s getting. He makes good profits because people don’t nickel and dime him over everything and he converts 6 in 10 new phone calls into customers.
Mitch, on the other hand, is becoming a dab hand at fishing. And his wife is wondering if he should just give up this running your own business lark and get a real job. He’s even started talking to real estates to rustle up some business. Even though they take out all his margin and pay him nearly two months after he’s done the job.
So what’s the difference? Continue reading