Insights that Build Better Businesses

Clarity, systems, and leadership articles for mission-driven entrepreneurs.

The Clarity Corner

Hidden Profit Killer in Your Business: Scope Creep

 

By: Sharee Murphy, MBA (c)

 


Scope creep might sound harmless — after all, it’s “just a little extra” work. But those small add-ons add up fast. Every extra task you agree to without adjusting the budget or timeline quietly chips away at your profit and your sanity.

 

Why Scope Creep Hurts Your Bottom Line

When work expands beyond the agreed-upon scope without additional pay:

You spend more time on a project than planned.

Resources and team hours are stretched thin.

Other clients or projects get delayed.

Your margins shrink — sometimes to zero.

 

Real-Life Example: The Event That Kept Growing

A planner agreed to coordinate a 50-person event. A month later, the client added a live band, balloon décor, and a custom photo booth — all without increasing the budget. By the time the event wrapped, the planner had worked twice the original hours for the same fee, effectively cutting her hourly rate in half.

 

The Principle: Boundaries Protect Profit

Clear contracts and firm expectations aren’t about being rigid — they’re about being fair. Boundaries ensure that extra work is recognized, planned for, and paid appropriately.

 

Quick Audit You Can Run Today

Review your last 5 projects — did you do extra work without extra pay?

Add a “change order” clause to your contracts.

Train yourself (and your team) to respond with:

“I’d be happy to add that! Let me send over an updated quote.”

Keep a running list of requests made after contracts are signed.

 

Takeaway: Protect Your Time and Your Value

Scope creep doesn’t just cost you money — it erodes trust, drains energy, and delays other projects. Protect your bottom line by making sure every “yes” comes with a clear plan and fair compensation.

 

 

***This article is part of our Hidden Profit Killer series — uncovering the subtle ways businesses lose money and how to stop it.***

 

Read the rest of the series:

Unclear Roles & Expectations

Inefficient Processes

Poor Communication

Underutilized Talent

Poor Inventory Management

Scope Creep

Ignoring Data

 

 

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