Real talk here around making money in your business.
The big question of the day is, are you really in business to make money?
There are usually two major sides to this discussion when talking to clients and they sound like this.
Me: Are you ready to raise your prices in your business?
Client: Weeellll (that long drawn out well because you just got uncomfortable about making money)!
I don’t know if anyone will pay higher prices. I really just want to make a difference in people’s lives and I am okay with my prices.
Me: Are you ready to raise your prices in your business?
Client: Absolutely, if you can help me figure out what that price should be and how I can get clients to pay that price.
The question is, which client are you? I know you want to be like side 2 but then your heart and mind get in the way and you revert back to side one. By the way, there is no shame on either side. I want you to understand both sides because there is you and then there is your business.
You have feelings, belief systems, and money inner talk that you make decisions from every day. Your business is an entity defined by the governing agencies. It has no feelings, no belief systems and it sits there and waits for instructions from you or the governing agency in order to move forward. Oh but Kimberley, my business is an extension of me, and has to do the right thing! Yes, and you have to check yourself to make sure you are making the right decisions for your business as you are the caretaker of your business.
If you are not in business to make money then you are a hobbyist! There is nothing wrong with being a hobbyist go for it. A business as defined is “business. n. any activity or enterprise entered into for profit”. If you are not making money then you won’t be creating a profit and therefore you will not be seen as a business. The IRS can come after you and say that you owe taxes (and back taxes) on what you claimed as a business that was not truly a business but a mere hobby.
The other big reason you want to truly be making more money in your business is so you can really make a bigger impact and make a difference in the lives of many versus one at a time.
I came up in life pretty modestly. I was a military brat for the first twelve years. There was not a lot of money for extras in our household. Let’s just say that the average service member will not get rich serving in the Military. My mom worked some party-plan businesses because we moved every couple of years and always had to move. Back then there was no internet or virtual selling to stay in a job while moving your family around the world like today. My parents got divorced and my mom worked as a receptionist and still didn’t make a lot of money and had to get food stamps to support her four daughters. I picked up money off the ground and put it in my pocket for later.
The things I heard growing up were “money doesn’t grow on trees”, “put it back, we can’t afford that”, “you have to work hard to make enough money to pay the bills”, and “rich people are greedy $!*Holes”.
I bet you have a few you heard too. By hearing all those negative ways of looking at money I had some limiting beliefs about making money. My senior year in high school I was out of school by noon every day and taking the bus to a full-time job at the mall. You have to work hard to make enough money to pay the bills. I wanted some decent clothes that were not big hand-me-downs from my sisters. I wanted a class ring, a prom dress and I wanted nice things. The only way I was going to get these things was by working hard to be able to pay for them. And that is what I did. I worked hard. My $3.35 an hour job. Yes, that was the minimum wage. I worked at Taco Express in the mall. I worked and help to pay household bills and what I wanted for my senior year of high school. Never did get that class ring but I worked hard.
Now imagine that belief “You have to work hard to make enough money to pay the bills” as I was building a business. Working every day and getting little return for my time. “Rich people are greedy you know what’s”, so why would I raise my prices? I don’t want to be seen as greedy. To this day I still have to catch myself saying “I have more than enough, I don’t want to be greedy!” Then I have to shift my mindset on this. As a business owner of a multi-million business, I still have to make sure I am making the right decisions for the business to grow and not get stuck in my “stinkin thinkin” (my friend Dana used to say) that prevents me from making more money and building profit so I can make a bigger impact on the lives of my employees and the people in my community. Wouldn’t you like to write a $5000 check (or use the points on your credit card) to a local non-profit? Give people that work for you a bonus at the end of the year or give a 100% tip to a server at your local restaurant? By being in business to make money and having a profit strategy you can actually make a bigger difference in people around you and not just a few clients you work with.
When you work with the right coach to help you come up with your pricing strategy (yes you can strategically slowly raise your prices) your best clients will follow you when you are giving them the best value for their dollars. Having the right products, services and mindset will help your clients and it will help you. Be in business to make money and you will be able to grow and make the impact you started in business for.
Oh and just know this, there are some seriously greed poor people just like some seriously greedy rich people. There are some amazingly giving poor people and amazingly giving rich people. Rich people are people with more money. The rest has everything to do with attitude and the individual person. If you want to be rich and make a bigger difference then be rich and make a difference.
And if you want to discover how to price your services? Check out the Revenue and Profitability course on my website under The Hive Society Core Courses.