Back when I ran my freelance design company out of my home, I had an interesting relationship with money.
- I hated invoicing clients
- I hated quoting clients
- I hated keeping records and bookkeeping
- I was late in paying subcontractors
- I never felt like I deserved the rates I was charging, plus…
- I usually under-charged for my work
In other words, I was a terrible money manager. I’ve also read with interest the thoughts of my fellow columnists on WomenEntrepreneur.com -
Kim Kiyosaki writes about wealth - both in spirit and in dollars in her article, Finding the Rich Woman in You
Marilyn August tackles the issue of money conversations head on in her article, Money: The Last Taboo
Interestingly, as I was coaching one of my small business clients a couple of months ago, the same theme emerged. She was struggling with ways to grow her business, and was looking at one of her competitors as a bar for setting her own rates. She didn’t feel like she was as good as he was, so she valued her work less than his.
Here’s the ironic part - I knew both her and her competitor well. I thought they both offered similarly valuable services. When I found out what she was charging, I was surprised, because I expected her rates to be about $25-$50 MORE per hour than what she was charging.
When I dug deeper - I found that there were some limiting beliefs hanging around in her mind.
- If she charged more for her services, she would think of herself as greedy
- If she charged more for her services, she risked more rejection
- If she charged more for her services, she would feel like a fraud
In this case - the conversation isn’t about money - it’s about love.
- If my client was greedy, she risked alienating the people she loves - not just clients.
- If she was rejected, she risked losing her own self-esteem.
- If she was a ‘fraud’, she risked jeopardizing her very identity.
Breaking through these barriers isn’t just about having more open conversations about money. And it’s not even about building up a positive self-image, which she already has.
It’s about looking more closely at the words she is using to define what money means to her - and also getting in touch with the consequences of holding onto these beliefs that are limiting her business and financial growth.
My ‘assignment’ to her was to write 7 definitions what “Greedy”, “Rejected” and “Fraud” meant to her specifically. Her vague feelings and thoughts around these words created a false association between what she was really doing vs. subconscious definitions.
Once we pushed to define ‘Greedy’, she started realizing that some of the definitions she had in place were not only limiting, but downright silly when spoken out loud.
So, what skeletons words are hanging around in your financial closet? I dare you to define them and to stop short changing your business - and yourself!
6 Responses to “Money Conversations - Are You Short Changing Your Business?”
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June 7th, 2007 at 2:45 pm
[…] Last week we had a hot debate on money issues on my Entrepreneur.com blog. I promised a follow up post and today I published Money Conversations - Are You Short Changing Your Business? […]
June 7th, 2007 at 5:33 pm
your bullet points at the top exactly describe me! I have no idea how to manage the financial part of my business. I have the same fears as the client you mentioned, I realize that it’s unfounded, but still it is there and it is hard to get out of my thoughts.
June 11th, 2007 at 6:44 am
How do you know if a positive self image is already in place. OR since I have to ask perhaps I have my answer? I have been procrastinating on giving a client a proposal for a small landscape design job (my old area of expertise?) and just cannot beleive how I am dragging my feet. Par tof it is conected to a fear of putting a price on things…but theres more…so much more…anyone know a good counselor??
June 11th, 2007 at 7:14 am
Wendy — you raise such a good point about the internal messages we have around money and success . . . especially as women. As a tool for your blog (and other) readers, I heartily recommend T. Harv Eker’s “Secrets of the Millionaire Mind,” as well as his Millionaire Mind Intensive workshops. Eker very deftly bring us face-to-face with what we’ve heard, seen, and experienced in our lives about money and success (often, not empowering) that keeps us thinking “small” and “safe”. I read the book, listened to his 16-CD program, and attended the 3-Day workshop (last month — take the workshop . . . the experiential learning is phenomenal!!!), and can’t begin to tell you how it has changed my thinking patterns for the better!
July 4th, 2007 at 8:39 am
I can truly relate to the young lady. My home business requires for me to set my price on the merits of my handmade pillows. The price I originally set was to me too high and I realized that my when my sells were slowly diminishing. So I decided to come down off the price,when I started selling at festivals. My prices had been the same until recently my husband and I were discussing my business and he suggested I go up on my prices again. I was torn between making that decision and losing my faithful customers. What I realized was if these are my faithful customers and they loved my work any price would continue them to purchase my product.
October 18th, 2007 at 7:26 am
[…] Are You Short Changing Your Business?: Get down to the emotional root of why you don’t want to raise your rates in this post. […]