Do You Find Yourself Working More But Earning Less? 3 Reasons You Fall into this Trap and How to Break Free

Why You Are Not Getting Paid What You're Worth

Have you ever found yourself working extra but not getting paid for it?

I don’t mean over delivering by adding extra value and delighting your clients. I’m ALL for that.  In fact I highly recommend frequently delighting your clients!

What I’m talking about is the dreaded… (Cue the spooky music)

Scope Creep…

Or the

Over-needy client who wants “just one more little thing”.

Ever happen to you?

If you’re in business – of course it has!  Scope creep can be a natural byproduct of many different kinds of projects (think: design, tech projects, and construction just to name a few).  Wanting “one more thing” can be a sign of someone who is thinking through their requirements as they go.

Neither of these things is inherently bad.  It’s what you do with them that set you up for success or a spiral of resentment, misery, and lack of cash.

Here are the top 3 reasons why you may find yourself working like a dog but earning less and less and what to do about it.

Wanting to Be “Nice”

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3 Ways to Increase and Stabilize Your Cash Flow

Every business owner knows that cash flow is king. Without it, no amount of zeros on your top line revenue matters. Yet cash flow is the stormiest and most unsettling parts of being self-employed. After all, you can’t make your mortgage payment without it.

I find I am particularly sensitive to cash flow, especially when compared to many entrepreneurs. My mother got it right when I was young when she bought me a sign that says: “Happiness is a positive cash flow”. While I deeply believe happiness is much more than a positive cash flow… it sure does help!

One of the best ways to sustainability and sanity is to temper wild cash fluctuations and stabilize cash flow. Here are 3 ways to do that.

How to increase & stabilize your cash flow

Change Payment Terms

Review payment terms you have with clients. Are you leaving significant portions of your cash flow up to the whims of your clients and hopeful projections of project milestones? This move is not about making it be “all about you” or shortchanging the client by any means. It simply more accurately aligns cash flow with the work you do and value you provide. If you always collected 50% at start and 50% at completion, how might your cash flow change if you collected 50% up front, 25% at a midpoint milestone and 25% at the end? This is just one example so play with the numbers and percentages. Consider adjusting your payment terms (due on receipt, 15 days, 30 days, etc.) as well.

Need a confidence boost that this line of thinking is acceptable? Consider the construction industry where they get paid 90% before work is complete (with only a 10% holdback). Some service providers require 100% up front. [Read more…]

Do You Know Your Numbers? (No Apologies)

Do you know your numbers?  I don’t mean your bust, waist, and pant size either.  Your business numbers.  One of the major reasons businesses fail is not because they don’t have a great idea or aren’t great at what they do – it’s because they run out of the runway of cash. I hear from my clients and prospects all the time – “I don’t know what to charge!  I’m afraid it’ll be too much!”

Let this video guide you to what you need to know so you don’t become one of those struggling or failed businesses.

So many self-employed business owners do not know their numbers. What do you need to earn to break even? How do you need to price your services so you are profitable AND have a life?  What are you earning, where is your money going, and what does it all mean?

This isn’t some thinly veiled pep rally about raising your rates. Yes, you may need to raise your rates but that is not the only factor. In some cases you might need to lower your rates, serve a different audience, or diversify your offerings. Let me help you  build the confidence and the practical tools to get at the bottom of what is really going on in your business so you can stop selling yourself short and get paid what you’re worth.

It’s time to understand what is really going on where your numbers meet your mindset, visit http://www.pricewithconfidence.com to learn more.

How to Prioritize When Everything is a Priority

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