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 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.
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.
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?
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.
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