Have you heard the quote “I lose money on each one I sell, but I’ll make up for it in volume”?
That’s no joke, it’s the formula for bankruptcy, not prosperity.
Is your business profitable?
Many Creatives in business do not have a profitable business and don’t even know it.
The biggest challenge we face as women business owners is personal financial stability and independence.
Money and finance is the ugly side of running a business for the Creative. Financial issues are something I too have had to learn and is a big part of my passion for coaching bold Creative women – so they can have confidence and stability in life and business. Understanding the financial side of your business is more than what to charge, but knowing your thoughts and feelings toward success and money and it’s effect in our businesses.
Am I a financial wizard? Oh my goodness, no. But I know what I don’t know (and have help for that) and want to share with you what I do know! (If you have a chance, visit the website of my good friend Lynn Evans who wrote the book “Power of the Purse”.)
Over the 30 years in business as a Creative, I’ve learned A LOT about pricing, numbers, and money. I’ve made plenty of mistakes (and am still paying for some) but have learned more than I thought possible.
My personal goals have only ever been to bring home a paycheck to be proud of, have my business self-sufficient and weather economic storms, the ability to reinvent or pivot in my business as I saw fit…and retire someday.
I’ve compiled some no fluff, no-nonsense Moxie Pearls of Wisdom to answer our common mistakes. A result of my 30 years in business. So if you are looking for a pat on the back, it’s not here.
If you find yourself saying any of the following, then it’s time to take action.
1. “I don’t charge a lot, and don’t mind giving a discount because sometimes I feel for the customer and besides, it’s good customer service, I want to be accommodating.”
As women and Creatives, we tend to be people-pleasers and peacemakers. Even as bold women, there is a level of fear that someone will be disappointed in us or upset with our pricing. No, discounting your prices or undercharging is not a form of customer service. Discounting is like taking money out of your pocket and handing it to them, it’s income that won’t pay your bills.
2. “It’s easy to turn your hobby into a business.”
Well, that’s a nice thought and yes, many Creatives begin this way. However, what your well-meaning, encouraging friends and relatives didn’t tell you is if you are going to be IN business, you must MAKE money. Otherwise, it’s a hobby. If you want to make it a hobby, then do that, but don’t call it a business. If you aren’t interested in the business side then hire help in those areas but don’t ignore them.
3. “No one will pay the prices I need to charge.”
Our business is our passion – an extension of who we are. We each have a different set of talents, and you deserve to charge what you are worth AND make a profit. It’s our place to provide an outstanding product or service for a fair price presented in a way that the customer is well informed to make a decision if you are the right business for them.
4. “I can just make up my pricing based on what I’m selling and adding a few dollars or percent on top of the cost of the item.”
NO! Unless you aren’t taking a paycheck (and decide to be a hobby), you will not be in business long with that method of pricing. The only way to be profitable is to know your numbers. Revisit them at least annually (if not bi-annually) so you can adjust and shift with economic trends, inflation and to give yourself a much-deserved raise! Learning how to price takes work at first, but you will never regret it.
5. “I don’t know what to say when someone asks why I charge so much.”
Feeling caught off-guard makes for an uncomfortable and even awkward situation. Knowing and understanding what you uniquely offer is important and responding without “justifying” is the key. A professional response could be “My business and pricing assure I am able to deliver the very best my clients have come to expect.” Who can argue with that?
Remember, being profitable is not a crime, it’s not something to be ashamed or afraid of. It’s your response to your ability (get it? Responsibility!), an obligation so you can serve your client with the very best, and allows you to also serve your family and personal lifestyle. It offers fulfillment, which after all, is the reason you opened your business in the first place, right?
Are you ready to work your numbers and find your profitability to be successful in your business? My goal as a Moxie Catalyst Coach is to spark Moxie women like you to blast through their obstacles and show up boldly in their business and create a profitable, fulfilling business that is seen and shines!
If you are ready to show up bold in your creative business, let’s talk! Schedule your free Moxie [em]Power chat today.
Join The Moxie Sisterhood’s Sister Circle for more free goodies!