A Penny for Your Thoughts: The Truth about Money and the Mindset Underneath
September 16, 2016
Think. Attract. Track. The three keys to making money in your business. We’ve heard a lot of buzz about money mindset and attracting money and knowing your numbers but I know that hearing it and doing it are two very different things. So, I’d like to walk you through a process that simplifies this. It’s made a difference in my business and in the lives of my coaching clients.
Money. Money. Money. The reward and bane of entrepreneurial life. As business owners, we think about it just about all the time. Now it’s time to stop thinking and start doing. And, a big part of the doing it is to examine our thinking.
I’ve taken a three part approach to my money as an entrepreneur and you can, too:
- Money In
When we talk about needing to know our numbers, this doesn’t just mean keeping a tally of what’s coming in. That is a passive approach to managing money. In fact, it’s not really managing your money at all. It’s more like sitting back hoping the numbers will increase. There is a better way. A way to be empowered to make money, predict that amount, and plan for it in your business.
Initially, we just want more clients. We equate more clients with more money and to a small degree, that is true. But it’s a very small degree. Our pricing and rates play a bigger role and I’m going to share just how.
We may not have a clear picture of our expenses and that needs to change if we are serious about growing our business and being empowered to make more money.
And the underlying internal messages that drive our thoughts, beliefs, actions, and, ultimately, our money outcomes play the most critical role of all.
Let’s examine each of the key components to a financially successful business in a little more detail:
Instead of passive bean counting, figure out how much you need to be making each month. Actually sit down and come up with a number, a reasonable and realistic number of what you need. This includes all the regular ongoing expenses to manage your business: software programs, business apps, email services, domain providers, etc. It also includes your investments in your business: coaching, outsourcing, coursework, and programs. And last, but certainly not least, income taxes you’ll owe based on your income.
Now, add these up and write that number down. It is no longer a wish. It becomes a goal.
A goal needs steps to get there and when it comes to creating a steady influx of money in your business, the number one way to achieve that goal is to market. All. The. Time. And the best way to market your business is to speak! (I bet you saw that one coming! 😉 )
Another key area is to be sure you are charging enough to not only cover all your business expenses but to cover what you need personally in your life and enough to profit above these two things. So, let’s take a look at dealing with that by first seeing how much we really need.
It’s true that it does take money to make money but that is not a blanket statement. It’s easy as a newer entrepreneur to get caught in the trap of either not wanting to invest ANY money in growing your business or buying just about every new software, app, and course under the sun. The key to managing your Money Out is to examine the details.
Start by listing all the expenses you currently have to run your business with specific dollar amounts. Then examine each line item and ask yourself:
Is this item necessary to the operation of my business or is it a convenience that I can do without?
And then ask yourself this tough one: Am I using this service/program/product I’m paying for AT ALL?
It’s ok if the answer is, “No, I haven’t used it yet.”
Then, be brutally honest about when (or if) you really plan to use it. Try not to get caught in the trap of already spending so much on it that you feel compelled to get to it eventually and stopping that investment so you can free up funds for a real necessary expense. You can find great freedom in releasing a continued investment grounded in guilt instead of necessity. And know that you are not alone in this. We’ve all been there in one way or another.
Now that you have a real life number of your expenses (business and personal living expenses) you know the minimum of what you need to make in your business to cover those expenses.
In my own experience and work with my coaching clients, a key critical factor to earning enough income to meet and exceed expenses is not only how many clients but how much you charge for the services you provide. When you examine how many people you want to serve and compare that to your income goal, you can determine pricing and rates to charge.
Setting rates, earning money, investing in your business activate our relationship with money and much of this is based on the messages we tell ourselves, either our own messages or ones we’ve adopted (often from our parents). For many of us, this money mindset is filled with baggage that no longer serves us. Techniques and support around uncovering this baggage, examining it, and ultimately releasing it, set us free from barriers that challenge us to make the money we deserve in our lives. When we find ways to release the internal messages that actual prevent us from stepping into our value, we can begin to attract the people that value us and pay us what our services are worth.
Stay tuned for my next post, where we’ll take a deeper dive into Money Mindset and get you some strategies and resources to address this in your business and attract all the money you desire.
Now let me hear from you. What’s one takeaway you’ve gotten from this post? Let me know in the comments below.
*Disclaimer: Please note that this post is not to be interpreted as financial, tax or legal advice. It’s simply to share my approach to how I set goals around making and spending money in my business. All investment, tax, and legal advice should be provided to you by your Attorney, Financial Planner or CPA. Please contact a professional for support around paying taxes and making investments in your business.
I’m Jeannie Spiro, business coach and strategist for woman coaches and service-providers. Want to make more money in your business? Here’s how I can help.
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