Let's Get Real About Money + Entrepreneurship
Entrepreneurs like you — and like us — love using our gifts to make an impact on other people's lives.That's the part we like to talk about. What we're less open about is money. Today we want to give you permission to acknowledge something: As entrepreneurs we want to thrive socially, spiritually, creatively AND financially.
That isn't at odds with wanting to serve others or make the world better. In fact, the two are closely related. We always advise our clients to get ultra-clear on two things: 1) How they create value and 2) The customers they serve. Why? Entrepreneurs who laser-focus on their unique strengths and their unique audience deliver better products and services. And that, in turn, enables them to both charge premium prices and attract more business.
Think of it this way: Doing the work that makes you feel joyful for the people you really get (and who get you) is also the very thing that will make you more money.
What Should You Charge?
Too many entrepreneurs fall into habits that support neither the work they want to put out into the world nor the income they want to receive. One of the most common mistakes that businesses make is undercharging because they lack confidence or feel bad about accepting their customers’ or clients’ money.
You have to charge enough to make your business viable. That means you can cover all your expenses and pay everyone. Don’t forget to figure in all the costs of doing business — all the bills, fees, contractors, subscriptions — and factor in what you want to get paid.
So how much should you pay yourself? Enough so that you can have a thriving life. That means different things to different entrepreneurs.
There’s also one more factor in how much you charge: It has to be enough to make you feel that all your hard work is worth it. After all, you’re creating results for your customers — and that has real value. If your business isn't making enough to cover its expenses and give you a lifestyle that supports what's important to you, then your business isn't sustainable. You have to honor your financial realities to keep doing the work you're passionate about.
You Are Valuable
If you’re feeling a little insecure about charging what you’re worth (especially if your business is new or you’re charging more than comparable businesses you researched), remind yourself of your unique value. You have distinctive strengths, expertise and experiences that make you stand out from your competition. Keep all of that in mind as you set your prices. Also take a look at your website and other marketing materials to make sure they’re communicating that value so you can attract the people who are willing to pay for it.
As your business grows, you will gain clarity and insight as to what works and what doesn’t in terms of pricing. Consider different ways of packaging or bundling products or services. What will add the most value and bring in the most revenue? What is scalable? Can you offer these services at different levels and/or price points, therefore appealing to multiple audiences with varying budgets?
If you needs some help sorting through this, we specialize in helping entrepreneurs build profitable businesses and rich lives. Schedule a call with Kristin!