relationship with money

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Money and your business

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How is money impacting your business?

How is your mindset around money impacting your business?

Money is a topic that comes up a lot in my business and in my clients' businesses - that they want to make more of it. That they're finally ready to invest in a coach because they've been trying to do everything along and they aren't getting any where. That asking for it feels so uncomfortable that they simply don't ask.

Dealing with the money stuff in your business is like peeling an onion – there are so many layers. This is because money affects every aspect of your life. It is an emotionally loaded subject.

I wanted to dig down through a few more layers so I invited Core Belief Engineering Practitioner, Megan O’Neill, to once again join me on the podcast to talk about money and business. Megan is a belief and mindset specialist who works with entrepreneurs on their mindset blocks and what holds them back in their businesses. She works with clients internationally via Skype and loves to talk about how people get stuck on money. 

You can listen to the audio in the player above, read the recap in the blog post below, or scroll down to the bottom and watch the original live video!

Money and your business.png

Money is the number one mindset block that holds people back from moving forward in their business. This is because it runs through so many components of being a business owner – and believe it or not, the money issues we have as business owners are about more than just making money.

Pricing

Business owners get stuck when it comes to pricing because they are under confident about what to charge. They're not clear or confident enough to charge their worth. Instead they “price source” – they ask other people what they should be charging for their products or services.

Entrepreneurs often make up what they think they should be charging or let other people have a big influence on what they charge. Instead of doing this, recognize your value and charge your worth!

Everyone has a different perception on what they should be charging for a product or service. For example, say I have a beautiful piece of paper towel that one person may pay $20 for, but another person may only pay two cents because they don’t value it quite the same as the first person. If you ask the person who wants to pay 2 cents what to charge, you're going to be making a decision based on someone who didn't even want your paper towel in the first place, and without taking into account what it costs or is required to create that paper towel in the first place.

Pricing is a learning curve. When you first start out you may undercharge and what ends up happening is you end up giving away a lot of time for free, which can burn you out and make you resentful. This may then push you to raise your prices accordingly.

Judgment

Business owners and entrepreneurs often fear that if they charge too much they will alienate current and potential clients.  They fear people will think they charge too much and won’t want to work with them. In essence, they fear being judged.

If this sounds familiar, you need to determine what you need to charge in order to make what you need to make. For example, if you have 30 hours available to work per week then how much do you need to charge per hour, etc. in order to make what you need to make in a week?

Be strong and clear about your pricing. There will always be people who challenge you about your pricing, but be confident. Those who object may not be your ideal clients.

You should also know that you can start lower and increase your prices as you grow. If you are struggling to increase your prices then you need to dig deeper and find out what is blocking you. Do you fear being judged? Do you lack the confidence to charge your worth?

Sales

There is an old belief that often lingers with business owners that sales people are pushy.

Sales are just communicating what it is you do and what you have to offer.

Someone comes to you with a problem and you present them you with a solution – this is essentially sales.  You are offering a solution to a problem. What people feel like they're doing (or are afraid people are going to think they're doing) is yelling "Give me your money! Give me your money!" at them.

You need to remember that when you are selling to a potential client, you are offering them a solution for their problem and they can take it or they can leave it.

It’s the used car salesperson mentality that can make people fear sales. But you must remember that you are providing value, not just trying to 'get their money' and be confident in your product or service. 

If the idea of selling still frightens you, when people approach you about your service or product, ask them what they need. This empowers you to give them a realistic answer as to how you can help them.

Spending Money

It can be just as hard to let money out of your business as it is to bring it in to your business, but investing in your business is one of the best ways to start seeing growth. 

There comes a time in a business owners’ journey when they realize they can't do it alone. Whether that is building a website, or doing your own social media – you will need to outsource, but the need “bootstrap” might be holding you back.

"I can do that myself, or I can learn it."
"I don't have the money to spend on that right now."

This money mindset block holds you back from hiring for the tasks that you don’t need to be doing or from spending money on your business.

In order to overcome this block, you need to focus on the bigger picture. You need to see that in order to make money you have to spend money. You may see it as losing money as opposed to seeing the opportunities that can come from spending money on your business.

Think of it like this – if you can hire out something such as your weekly newsletter for cheaper than you charge per hour and to someone who can do it quicker than yourself, then think of how much more you can make by outsourcing this task. Not to mention, outsourcing the tasks that do not make you happy will make you happier in the end. Think of it in terms of money, time and happiness. 

Business owners and entrepreneurs need to get conscious about their money blocks. Often these money blocks are old and prevent people from earning the money they need to make. These money blocks are often mistaken for being smart i.e., if I do it all myself I am saving money – and even though it may feel like it is the right thing it is not the thing that will help you grow your business.

Money is a DEEP topic - personally and in your business. If you notice yourself struggling with making enough money, with asking for the sales, with figuring out to get comfortable with your prices or with letting yourself get help with certain things, considering booking a call with Lara or Megan. There are practical ways to figure out what to do next, and there are ways to dig down deep into your belief systems to find the root of the problem. Don't get stuck feeling like you figure this all out on your own when there are people who have already figured out the path through.

This episode was a new style, originally broadcast as a Facebook Live conversation and then brought in to the podcast. Did you like this format for the show? Would you like to see more conversational style podcast episodes? Leave a comment and let me know, and let me know what other topics or guests I should have on!

Resources & Links

Core Beliefs for Business with Megan O'Neill - Free Facebook Group

Megan's O'Neill's Mindset for Sucess Program

Join my Free Facebook Community

Book a free 40 minute call with me

Subscribe on iTunes

Subscribe on Stitcher

 

YOU MAY ALSO LIKE THESE EPISODES:

Your Relationship with Money

Entrepreneurs and Confidence

The danger behind loaded words

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5 Five money mistakes I made in 10 years

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I have made a lot of mistakes over the years, but I have learned a lot too – especially when it comes to money.

This is part two of what I have learned in my 10 years as an entrepreneur. A lot of the mistakes I am sharing today could have been avoided with simple planning; something I have struggled with over the years (but fortunately have a better handle on now :) . Often, a business owner's problems with money stems from their beliefs or what their history is with money. I am not immune to these mistakes and I am hoping the experiences I share here are relatable and that I can help you avoid the same mistakes by sharing what I learned over the years.

5 money mistakes I made in 10 years

Have a budget

You need a budget. You need to know what your expenses are and how much you have to spend as well as how much you need and want to spend. When I had my first business, a clothing store, we didn’t really have a budget. We just bought what we wanted – if we thought something was cute and would sell then we would buy it. But we had no idea what our budget was in terms of what we needed to earn, how much we should spend on advertising, staffing and any other business related expenses.

A lot of entrepreneurs and small business owners do this same thing. The consequences of not having a budget can creep up on you slowly – before you know it you’re further into debt than you intended.

A budget does not need to be complicated. Know what you are earning, what you need to buy, know your numbers, and spend responsibly.

Don’t just “make up” your pricing

Entrepreneurs who offer a service often make up their prices based on what they think people are willing to pay versus what they are worth.

You need to know what you need to earn and what your hourly rate should be based on that number. You also need to keep in mind that you are not going be billing for every hour you are available to work; sometimes you will need to work ON your business. You need to consider the hours it takes for marketing, engaging with your Facebook Group, etc.

If you only want to work a certain number of hours per week then how much do you need to charge clients per hour in order to make the income you need to make? 

How much can you actually take home?

Don’t guess how much money you will take home at the end of the day. Most businesses are not built so that you earn $5, you get $5. Huge percentages of what you earn are going to different costs.

A good rule of thumb is the thirds rule.  1/3 goes to savings, 1/3 goes to expenses and then 1/3 goes to you. So, how much do you need to earn so that you can pay your bills and pay yourself? Think it through and plan for it!

I used to think I could pay myself 75% of what I made and only have 25% to pay my expenses – but this only increased my debt. Over time, I accepted that I needed to earn more money as well as think through how I could divide up the money I did earn to ensure my expenses, etc. were also covered.

What’s the bottom number? (Don’t start there!)

The lowest amount you’re willing to work for cannot be your price. Let’s say you figure out that you need to make $50 an hour in order to meet your income goal – don’t charge $50. Ask for more because this gives you the freedom to create packages, create discounts and deals when necessary, as well as give you some wiggle room to work for less if you need to.

Make sure you aren't accidentally earning way less than you deserve by not starting out at the right place. Earn what you need to make and charge what you need to make.

Save the HST

If you are charging sales tax then you need to save the sales tax. This sounds obvious, I know.

This is separate from your federal tax. I will admit that in the beginning, I didn’t do this, so when it came time to pay back my HST I had not put that money away and it took me a long time to pay it back. It's not that I didn't know I needed to save the HST, it's that I was falling behind by not charging properly, not budgeting properly, taking home the wrong amount of money and not having a plan - so I had to keep dipping in to the HST to pay all my expenses. I was not being smart! I now separate my HST so that it is now properly accounted for.

Consider all of these lessons pieces of a puzzle so that you have the money you need when you need it. This will save you from needless frustration and overwhelm. It will also prevent you from being underpaid.

Take the time to make a budget and create a plan so that you know what your numbers need to be and what that means in terms of how much you need to earn and how much you need to charge.

We all make mistakes in our businesses and you will likely still make some money mistakes in yours. That being said, a plan of action will do wonders to keep things on track.

It was MY coach that got me on track years ago and this is something I help my clients with regularly now. If you want to talk about how I can help you, book a free consultation and we'll talk. 

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#8 – Your Relationship with Money

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When it comes to running your business, what is your relationship with money? Are you charging your worth? Are you spending the money necessary to grow your business? If you struggle with your relationship with money—you’re not alone. Many entrepreneurs and business owners don’t know their numbers or they’re afraid to talk about money.

your relationship with money

Johanna Lynn joins me on the podcast to talk about the relationship we all have with money. She works with what we inherit from our family. She believes none of us are who we are by accident; our childhood blueprint shows up in more than you may think, including in our relationships with people and with things, such as money. This is all due to our family and how we were raised.

Who taught you about money?

Even though money is so important, no one really teaches us about money and finances. As adults we make every day decisions when it comes to money and with those decisions come emotional attachments that live right below the surface.

Whether you are wealthy or struggling to get by, there are common themes in people’s relationship to money. You need to look at what is running you on the inside when it comes to money. It is more than just skills learned through financial books; we need to understand our feelings around money.

How our thoughts around money differ

Think about it: you could have two successful women entrepreneurs who own their own business, who are married and are both mothers and on the surface it may seem like we have some of the same things, however our blueprint, set out by our relationships with our parents, is different. It is our blueprint that makes people think and act differently from one another. Those two woman can make vastly different decisions with money, impacting how they spend it, how they receive it and how comfortable they feel with what they have or don't have.

When it comes to money you either think you have enough or you think of money in terms of scarcity – in turn this affects your relationship with money, right down to the little purchases you make. Money is a big part of being an entrepreneur. You need to spend money to earn money, whether that is investing in a business coach or equipment.  So, you need to be comfortable in your relationship with money.

Myth: You’re born a spender or a saver

Believing you’re born a spender or a saver is an unconscious loyalty that can come from seldom allowing ourselves to do better than our parents. If you have parents who were all about keeping up with the Joneses but did not have the money to support this habit, then as children we notice the strain of living beyond our means. In turn we grow up to repeat the same behaviours or grow up to do the opposite: save every penny we earn to avoid the strain our parents had.

Regardless of which path, our relationship with money is often not our own but is a subconscious relationship based on the relationship our parents had with money.

Your relationship should not be the same, though. You would not want your children to fall into these pitfalls and neither do your parents—they do not want you to make the same mistakes they did with money. At the same time, letting the pendulum swing too far the other way isn't necessarily a solution either.

It all comes back to clarity.

A fulfilled life is a lot more than just doing what you think you should – it’s thinking about what you really want. Does your spending match with your desires? If you’re overspending, but realize you want a different life then you need to examine what that is and match your spending to match your savings.

The grass is NOT always greener on the other side

We need to get clear on what we want. We can easily get caught up on the idea that making a certain amount will make us financially free. But what does that number mean to your ideal lifestyle? Will you keep working for it? Does your work make you happy?

Many people easily fall into a pattern of doing over being. This comes from an early memory in our body where we needed more from our mothers than she was able to give us at the time. We take this memory and turn it into our relationship with money – it’s never enough (money, affection from my spouse, etc.).

What does success look like for you?

Society’s picture of success is not your picture of success. It’s what’s behind your desire – is it paying off your mortgage, or paying off your car? Get behind your “why?” By getting clear on your money relationship you get a lot more clarity around how you are going to get to your ultimate goal.

Your relationship with money is a lot deeper than recognizing your credit card debt. It’s recognizing the feeling places in your body and how you feel when that credit card bill comes in and how it feels when you have to ask to borrow money to pay it off.

Johanna has spoken with multi-millionaires who are still not secure with their money because they are constantly afraid the rug will be pulled out from under them. This is about more than just the money, there is another underlying reason for their relationship with money that needs to be investigated and uncovered.

What to look at in your relationship with money

We need to look at how our early templates were formed and how they are affecting our current relationships. What were your parents like? What was your childhood like? We are affected up to three generations back as to how we will react with money. We need to understand our influences in order to get clear on why we make the decisions we do.

Money patterns are multi-generational and influence us until we address them by becoming conscious of our own patterns and then tracking it back to how we fit into our entire family system.

 

Resources & Links

Johanna’s virtual workshop: Your Inner Relationship with Money

Join the Free Facebook Community

Subscribe on iTunes

Subscribe on Stitcher

May 4, 2017

Podcast Contest

Congratulations Marie Shinmoto and Kim Be who have won The Big Leap and You're a Badass!

As this new podcast gets off the ground, I’d really love your help to make sure that it gets in front of the right people. The first weeks of a podcast’s life are the most important in terms of the opportunities for iTunes to showcase you to other listeners. Because of that, I’m starting out this new podcast with a bang. There are 3 episodes available for you right now, and there will be at least two more episodes every week for the remainder of the eight weeks.

I thought I’d find some extra ways to thank you for all the sharing and supporting you do of the new podcast so every week until July 15th I’m going to be giving away one of my favourite business books to one person who either:

  • subscribe to the podcast or leave a review on iTunes; or
     
  • share the podcast on social media; or
     
  • come in to the Biz Studio and post your favourite tip from a specific episode (along with a link to that episode)

In all cases, you need to make sure that I either know who you are (email me a screen capture of the review or showing you are subscribed) or that the posts on social media are public and tag me (@larawellman) or the Biz Studio (on Facebook you can tag my page).

Each week I’ll be announcing the book winner on Wednesdays on my Facebook page

Some of the books I’ll be giving away are (I’ll be adding more titles soon):

  • The Big Leap by Gay Hendricks
  • It Starts with Why by Simon Synek
  • How to Live a Good Life by Jonathan Fields
  • E-myth Revisited by Michael Gerber

So get out there and start sharing your reviews and sharing the podcast and good luck. AND THANK YOU!