One of the hardest things we face as entrepreneurs is the value we place on our time. The age old saying is time is money, but is this the real truth or are we just using the saying to prop up our egos when confronted with our real worth? To get paid what you’re worth must you sacrifice your time, your life or maybe it is all about your comfort zone, where you feel comfortable about the amount of money you earn.
What You’re Worth at Small Business Start-Up
Your Small Business start-up period will be the time when as the owner a few sacrifices need to be made. We find that most of our profit will be required to be moved back to the small business to allow it to grow at a steady rate. So in the small business start-up period it can be the survival of the fittest. This is the time to really take note of what is in your business plan. Your business plan will show you:
- The capital required to move your business forward over the start-up year.
- Expected overheads, this will give you an incite to where savings can be made.
- Your expected profit or loss.
- Areas of expenditure that will result in a change to the profit or loss over a period of time.
At this point the small business entrepreneur must realize that for the business to survive its growing years you get paid what you’re worth in satisfaction, that’s right, just the satisfaction that you have built a business out of your passion. This is not a time to drain all profits and purchase the top of the range dream toy, this is the time to get by and build your small business. Remember small sacrifices.
The Customer and The Entrepreneur
How much should be enough? There is a fine line between the value of a product or service as viewed from the customer and the small business owners point of view. Though in the end we are looking for the same thing, a result that satisfies our emotional needs. The trick here is the point at which the race is won.
Lets take the fable of the Tortoise and the Hare (Customer and the Entrepreneur). The starting gun has fired, the customer has decided on a product or service they require and the entrepreneur has that same product or service for sale. The customer is slowly researching price, quality, after sales service. The entrepreneur is racing around with one thing on their mind, winning the race, getting the sale. We all know the entrepreneur has lost the race before the starting gun fired. Where they failed was in not knowing what the customer really wanted.
Get Paid What You’re Worth
Winning the race was the last thing on the customers mind. For you to make the sale and get paid what you’re worth you need to understand the emotions behind the purchase. Start the race on an even par by talking to your customers and listening to what they have to say. Add value to your product/service by giving your customer a reason to return and purchase again. By taking notice the small business owner has given themselves the best chance to win.
Five Small Business Treasures
- Understand why your customer will purchase off you at a higher price. Guarantee your product/service.
- By increasing your prices you can decrease your sales and your outgoings giving you a larger profit margin.
- Overcome your emotions and get paid what you’re worth.
- Know your break even point.
- Pay yourself first in line with your personal financial statement.
You will get paid what you’re worth by growing your small business and investing back into your passion. Remember this is not the race of the tortoise and the hare, this is about the emotions of your customer, the reasons why they keep coming back to do business with you.
Share your thoughts and experiences with other small business entrepreneurs by commenting below. By helping each other we grow.