Knowing what to charge as an entrepreneur.
One of the things that I find myself disagreeing on with clients is how much they should be pricing themselves at.
With a recent client, she sent across some suggestions for price points for her packages.
I got back to her and told her to double it.
U huh. Double. It.
My reasoning behind dishing out this advice is two fold:
#1 It’s about Knowing your worth
The ‘charge what you are worth’ part of me says we shouldn’t undermine our talents, skills and the work it has taken just to get to the starting line of our business.
“But how can I charge this when I’ve only just started out.”
Chances are, you’ve not only just started out.
This is something you’ve probably been working on for a large chunk of your life.
People don’t magically decide to create a business overnight. More often than not, this is a long process, years of self-reflection and personal development, years of research and planning
Whilst it may feel that you are new to the game, my guess is that the business you have created has been something that you have been working towards for a lot longer than you realize.
Before I launched The Clique, I had been blogging on a personal blog. I’d also been a keen writer and would dip in an out of creative writing. I also read A LOT of self development books. I’d been in roles which involved client interaction. I had overcome many failures (jobs I didn’t get, projects I started that I didn’t see through, credit debts I wracked up, relationships that were destructive) I’d travelled a lot and had a lot of time thinking about life up the top of a mountain.
When I started The Clique, all of these experiences came with me and are a big part of what I do and why I do it.
These are just as important as the business knowledge.
Whilst a big part of what I do with clients is business strategy, sharing my own life lessons is equally impactful.
You have to realize that everything you have done in your life so far has led you to this point. You are not “new to the game”, you are simply starting the next chapter in it.
To charge low to begin with is to almost say that everything that you have been through in order to get to this point of launching your business is irrelevant experience.
It’s totally relevant.
What is important when you set your prices is not how long you’ve been doing it for but how much value you can give. You may not be the most expert person in the room, but perhaps you deliver information in a way that resonates with someone more than the person that has been in the industry for years.
You may have only really started refining your craft, but perhaps its something you are naturally super talented in and people already perceive you as someone who has been in the industry for years.
My point it; don’t let the “I’m new to the game” mentality sway your choices. Back yourself and according to the value of what people will get from working with you.
#2 It’s about Thinking Bigger Picture.
The ‘Go big or Go home’ part of me says if we are looking to create something BIG for ourselves and a business that exceeds our expectations, we can’t expect this to happen if we only charge the bottom line.
Many new entrepreneurs make the mistake of thinking that they have to go in low to start out.
What happens when you do this is you will feel like you are working in your business rather than on your business.
You will have to take on a lot of work and a lot of clients in order to make the money needed to not only live off but also to reinvest.
Many people forget about the latter.
Reinvesting back into your business is critical if you want it to grow. Whilst your initial goal may be to earn enough to quit your job and to take your business full time, my guess is that you want your business to bring you big financial gains long term and earn more than what you do currently.
In order to get to this point, you need not only the money to grow your business but the time. You won’t have this time if you are constantly booked up with clients in order to make this money.
This is exactly the position I found myself in to begin with:
I was technically booked up with clients and couldn’t have feasibly taken on any more work yet I wasn’t earning what I wanted and didn’t have the time to strategize for growth. The only way around it was to take on less clients and to charge more.
I raised my prices and as a result I can work with less clients (and clients that I really want to work with) and I have the time to plot for The Clique’s future and how I want to expand it.