Let’s talk about that “dirty little secret” us passion-driven Entrepreneurs hate to talk about. Money!
Money, money, money … Making money, charging for our services, raising our rates, asking for payments. Talking about it can be uncomfortable, but it is something we need to discuss if we want to continue helping people and transforming lives.
Today I’m going to talk about 6 common money mindset issues that Entrepreneurs experience and how to shift your mindset so you can confidently charge more for your work and make more money in your business.
Money Mindset - Scarcity
When I first started my web design business, one of the first questions I got asked is “Do you think the industry has been flooded with Web Designers?” This immediately triggered a scarcity mindset. Will there be enough clients who need websites so that I can be profitable? And more specifically, given that I was focusing on the Health and Wellness niche - will there be enough Health and Wellness Business Owners who need a website? Is there enough of a demand for holistic healers?
My doubts led to insecurities and affected my confidence in starting up my dream business. One that I had dreamed of starting for years because of my passion for creativity and fascination with energy healing. Could my dreams be crushed with this one simple question? How could I possibly make more money in an overflooded market?
You may have experienced similar emotions and doubts that have blocked you from creating a high profit business. Rather than feeling like a helpless victim, you can embrace the mindset of empowerment.
Change your money mindset – get the facts
If you are feeling this way as well, an effective strategy is to get your facts. Which is exactly what I did. It wasn’t easy to find the information, but I persevered. Here’s a few facts I discovered back in 2014:
- 52% of small businesses don’t have a website.
- 74% of small businesses plan on increasing the use of their website
- 3,200 website companies cater to about 2.7 billion users worldwide for a combined annual revenue of about $58 billion.
- Canadians spent over $5.6 billion out-of-pocket in 2006 on Alternative Health therapies.
These facts, plus a few other stats, were enough to help me change my mindset and realize that there was a huge interest in alternative health. This renewed my passion realizing that I could help more healers transform more people’s lives and increase profitability.
I encourage you to explore the facts and determine whether your scarcity mindset is valid. If it is, explore alternatives otherwise you can take advantage of the opportunities and raise your prices to meet the demand.
Money Mindset - Making money is hard work
Imagine if money flowed easily into your bank account. New clients come to you easily and effortlessly. Your life is abundant and you want for nothing. Am I dreaming or is that even possible?
I’m sure you’ve heard it before – if you want to succeed then you need to work hard. If you word hard, you will be rewarded. To survive, we need to work hard. This leads to business owners who are overworked and burnt-out! Or even worse, Entrepreneurs who feel guilty and try to deliver more because “the hard work will pay off”.
It’s easy to get sucked into this mindset because you hear it from many of the popular successful Entrepreneurs.
Change your money mindset - It’s time to get curious!
We also hear of Entrepreneurs who are very wealthy and only work 3 days a week. How do they do it? If we wanted to double or triple our profits, do we need to double or triple the work?
We know that not every Entrepreneur works 80 hour weeks and yet they have managed to become successful. It’s time to explore how they do it. How do they prioritized what they do? How do they market their services? What systems and processes do they have in place?
Google is your best friend here. Start searching for answers. Read blog posts. Take a mini-course. I know there are solutions out there, you just need to find them.
3 books you can read:
- Get Rich, Lucky Bitch by Denise Duffield Thomas
- Think and Grow Rich by Napoleon Hill
Money Mindset - Fear of Success
Who am I to believe that I can be that brilliant? What if I get too many clients? What if I can’t deliver on my promises?
A million thoughts can go through our head as to all the reasons we should be afraid of success. It could be that you think you will have to work too many hours.
I remember expressing this fear when I first started. How would I handle an influx of clients? One of my Networking friends chuckled and responded with “What a great problem to have!”.
What if I fail?
Oh, but my darling,
What if you fly?
Change your money mindset – Challenge your thinking
Your playing small does not serve the world. We are all meant to shine. Embracing success allows you to serve more people and make a difference in more lives.
If you identify issues with being successful, then it’s time to start asking the tough questions. How can I overcome this objection or issue? What do I need to do? Who can help me find a solution?
Too many clients! Maybe it’s time to raise your prices.
I’ve read this many times in blog posts. What differentiates successful people from people who are not.
Successful people look at problem, and ask "How can I make this happen?". Unsuccessful people look at a challenge and identify all the reasons why they can’t succeed.
This is your time. Your time to explore the possibilities.
Money Mindset - My client can’t afford it
Have you ever given a client your best price because they said they just couldn’t afford it and then you see on Facebook that they just took an extravagant trip or bought a new car or new living room set?
More often than not, it’s not that the prospect can’t afford it – it’s simply not a priority for them. And that’s OK. You probably would not want them as a client if it is not a priority for them and they're not ready to invest their money or time. You want a client that is committed to the project and invested in the results.
People who underpay often generate other types of stress, strain and resentment that can undermine the experience you want to provide. You’ll end up feeling burnt out, unhappy in your work, and angry at the very people you want to help.
Change your money mindset – don't make assumptions
It’s time to get out of your client’s pockets and raise your prices to reflect your value and expertise in your field. Assume your prospects can afford your services and appreciate the value you provide.
Money Mindset - I’m not providing enough value
You’re excited to work with your new clients and can’t wait for them to experience the joy and inspiration of working with you. You know they will feel more energized and have a new zest for life. But is this really enough? Will people actually pay for more joy in their life? After all, is this really a tangible result?
I have 3 boys and I am filled with gratitude every day with the life lessons I have learned as a result of having them in my life. When my oldest and youngest boys were in school, I dished out a lot of money to help them manage their dyslexia and all the pressure and anxiety that came with having a learning disability. My heart ached as I watched them trying to navigate the school system and the academic teaching approach. And of course, there was the constant push to put them on medication to pacify them in the classroom. As a result, I explored many alternative approaches to medication and was introduced to a whole new world of nutrition, alternative and holistic healing. What a wonderful and tumultuous journey it was.
I invested a significant amount of money to help my boys overcome reading challenges, anxiety and the pressure to perform. As any mother would know, seeing your child suffer is excruciating. The value of seeing my boys thrive, succeed and be happy was worth every penny. Not only did they feel better, my own life improved because I was not worrying about them all the time.
Although, intangible results can be difficult to measure, sometimes it’s more of a matter of reminding yourself how much value you provide. By nature, we often focus on what we do wrong and it’s time to change that around and focus on your value.
Change your money mindset – focus on the outcome
A few years back, I learned this one simple tip from one of my mentors, that was life changing for my business. It helped me realize and focus on the outcomes that my clients can achieve as a result of working with me and what that means to their life.
Here’s what you need to do:
- Make a list of all the benefits/value you provide.
- For each benefit, extend the sentence with “so that” and include the result or transformation your client can expect.
- A customized nutrition plan that will reduce your brain fog so that you have the mental clarity to get things done more quickly and spend more time with your family in the evening.
- A focused physiotherapy regime so that you can run the marathon that you have been dreaming about the last couple of years.
- Homeopathic protocols that will improve your mental clarity so you can set boundaries and confidently pursue your life choices.
Experiencing this exercise will give you more confidence and clarity in the value you provide so you can confidently raise your prices and feel excited about the value you offer.
Money Mindset - It feels unethical to charge that much
Being part of an industry of passion-driven entrepreneurs where money is the “dirty little secret” we all hesitate to talk about, it’s common for business owners to feel unethical about raising their rates. Heck, many of these people would work for free if they could.
Have you ever thought about your profit when you charge by the hour? Let’s say you charge $25/hour and it takes you 6 hours to provide your service for a total of $150. Over the next year, you serve many clients, gain more experience, learn a few tricks and up-level your skills through a couple of courses. By the end of the year, you are able to provide a much higher level of service with better quality and can now provide your service for 4 hours for a total of $100. Given this model of hourly pricing, you will actually make less money as you get better at what you do. You provide more value and get paid less – does this make sense to you?
Maybe it feels unethical for you to charge $150 for 4 hours work! Think about it – you are now providing more value. At the end of the day, should the client care whether it takes you 4 hours or 6 hours – they are looking for a certain outcome. If they are getting even more value – maybe you should be charging $200.
As you get better and faster at what you do, it doesn’t mean you should make less. As you consider raising your prices, think of the value you provide and the results your clients can experience. What would be the cost to your clients of not doing business with you?
Chris Do, Founder of thefutur, created a video on Pricing Design Work & Creativity, discussing hourly based pricing and value based pricing and how to have the conversation with your prospects. He raises many interesting points and why you should raise your prices to meet the expected outcomes of your clients.
Change your mindset – share your abundance
A couple at a retreat I attended were apprehensive about striving to make over $100K in a year. The husband was concerned that it would put them into a higher tax bracket and that they would have to pay more taxes. It took a couple of years before his wife could convince him that making more money was a good thing. Now they chuckle at the misguided logic and embrace the abundance.
Raising your prices and making a lot of money is not a sin. As a matter of fact, it can be a gift to this world as you expand how you serve.
Imagine what you could do if you raised your prices and made more money. You could give to your favourite charity and help more people. You could share your knowledge and teach other people how to help more people doing what you do. You would have more time to re-energize, be joyful and raise the energy vibration in this world. The possibilities are endless.
Shift your money mindset and increase profitability
Money can have such negative connotations in this world. Greed, scarcity, money-grabbing people. But it doesn’t have to be that way.
Shifting your mindset about money can help you feel empowered to make more money, feel more confident in your worth, and more grateful for the money in your life. Make sure you are basing your mindset on facts and not fears.
Money is a GOOD THING and we need to embrace it, show gratitude, and be intentional about how we allow money to show up in our lives.
What is your favourite money mindset shift? Let us know in the comments below.
PS: Did you know that updating your website can help you with your money mindset? As part of the strategic design, we focus on amplifying how you help, the value you provide and the outcome your clients can expect. This experience will help you realize your worth and give you the confidence to raise your prices. Sound like something you want to pursue, I can help. Simply fill in my contact form for a free consultation and we can have a chat.