That’s the question I asked a group of women entrepreneurs recently, and it amazes me how many women have limiting beliefs around wealth. Among the group, only a few would say the words “I want to be rich.”
I had a discussion about this with The Conquer Club LA hosts, who got a similar response from the group of women they work with.
When did “rich” become this dirty word, and why do so many women entrepreneurs shy away from wanting to make more money and be rich as a result of their hard work?
I want to be rich. I want to use that money to create positive change in the world. Money in the right hands can be a beautiful thing.
I want you to be rich too, so let’s get started.
1) Raise Your Rates
I believe most women entrepreneurs need to charge more. They often believe in order to stay competitive they have to keep their rates low and their profit margins small. There is a fear that if they raise rates, clients will run for the hills. However, this kind of thinking is not only inaccurate, but can be detrimental in the long run.
Consistently underpricing your product or service will eventually undercut the overall value and success of your business.
To really stay ahead of the game and make more money, you should look at yourself as separate from the competition. What you have to offer is unique and special on its own, and that’s something you need to embrace at your core to fully appreciate the potential and possibilities for your business.
In recognizing your market value and raising rates accordingly, you put yourself in a better position to increase employee compensation, manage expenses, and expand services or focus on product development.
Yes, raising rates can seem like a tricky proposition but with careful planning and implementation, your clients will not only stay, they will perceive you in a new light. This is truly your chance to shine in your clients’ eyes.
Highlight the value of your services. Explain in detail the reasons for the increase, what you’ve done to save them time and money, how you make their life better, and what strategies you have in place to go forward.
Along with a ton of sweat equity, you put your heart and soul into your business. So why not ask for what you’re worth? Change your mindset and you can change your life.
2) Keep Your Mind On Your Money
I heard Danielle LaPorte say in an interview that she looks at how much money is in her bank account every day so she sees it there, and asks for more to keep coming. I do something similar but on a weekly basis, not daily. I also kiss many of my checks and say a silent thank you for the opportunity to get paid to do work I love.
So often we sabotage our relationship with money because we subconsciously associate it with negative thoughts or connotations—greed and graft. We keep it at bay with our beliefs. Money is the root of all evil, they say? Well, heck, I beg to differ.
In the wise words of Henry Ward Beecher, “Riches are not and end of life, but an instrument of life.”
Money may not buy happiness, but it allows one to share and experience the best that life has to offer. In a spirit of gratitude, I embrace the blessings that money brings to my life.
Like the cyclical rise and fall of tides, money has its own energetic ebb and flow. You can either resist its flux or ride the wave. Keep your mind on your money, and you become catalyst for change to forge your own path and help others along the way.
3) Tap Into Divine Compensation
Marianne Williamson’s book, The Law of Divine Compensation, is one of my favorites when it comes to money.
This is how she defines divine compensation:
To whatever extent your mind is aligned with love, you will receive divine compensation for any lack in your material existence. From spiritual substance will come material manifestation.
I really believe in the power of your intentions, and when you intend to do great work in this world I know you are provided with what you need to carry out that intention.
Intention is the conduit for creativity, the impetus behind inspiration.
As co-creators, our intentions spark those ‘aha’ moments when we know we’re on to something special. It is also a major motivator that propels us to action so we can manifest all we need to survive and thrive. When you dream from our heart and intend for the greatest good, it’s like giving a high-five to the universe. Expect miracles.
4) Spend More
That’s right. Sometimes to have more money you have to spend more money. You have to invest in the systems that will help you grow, and the people who will support that growth. I incur tens of thousands in expenses every year on systems and people, and I would not be where I am today without them. I keep pristine records so that I get to claim every penny I can during tax season, and I also rack up a lot of free flights and hotels by putting expenses on my Visa Business Travel Rewards card.
As you grow your business, you really need to get clear on your business basics, that is identify the most essential things you need to run the show. You should invest money on things that will optimize your productivity and ultimately yield a greater return. You may need money for equipment, money for your website, money for marketing, money for taxes, and money for insurance, for starters.
Plan ahead and write out what you think your estimated expenses will be for the next 24 months along with projected monthly income. As you get a handle on your expenses, you will have peace of mind knowing you’re financing your way to freedom.
5) Get In The Flow
As a small business owner, accurate bookkeeping is fundamental to managing cash flow. Short of hiring an accountant, you should have user-friendly systems in place so you know exactly what money is coming in and what money is going out. One way to do this is to use a tool like Wave Accounting. This is a free accounting program that features balance sheets, general ledgers, income statements, sales tax information and more.
All documents that represent revenues or expenses should be kept, including receipts, deposit slips, and cancelled checks. If you want to go paperless, Shoeboxed.com can digitally archive your receipts for you. Think of it as an online filing cabinet, and kiss your clutter goodbye.
I recommend that a small business owner spend at least an hour each week updating financials. By keeping everything up to date, you are better able to make key decisions about where and how to spend your money. Also, having your information in order during tax season will hopefully save you a good chuck of change.
6) Make Money Your Priority
I talk to so many entrepreneurs who do their own accounting, packaging, order fulfillment, marketing, and the list goes on and on. You can’t do that as an entrepreneur.
Let me repeat that: YOU CAN’T DO THE BUSY WORK.
As an entrepreneur, revenue needs to be your priority. Busy work needs to be handed off to someone else.
Even if you can only afford to hire someone for two hours per week to start, hire that virtual contractor and for those two hours each week, spend your time hustling and generating more revenue. With that increased revenue, free up more of your time to generate revenue and hand off more and more busy work.
This is the only way your business will grow. If you stay stuck doing the busy work, you will have a very stagnant business.
7) Finance To Grow
What’s a quick cure for a cash flow headache? Financing. But before you seek to raise funding for your business, you need to determine whether borrowing money or selling ownership interest to equity investors is right for you.
In either case, you should carefully weigh the pros and cons of each and have a solid business plan right from the start.
The main advantage of going with a commercial lender is that, while you will pay interest on a loan, the lender will not be involved in the every-day management of your business or entitled to your profits. An investor, on the other hand, is a co-owner who has a say and direct interest in your profitability.
That being said, raising money through equity investors gives you the financial flexibility to cover expenses in lieu of loan payments. And if your business hits a rough patch, you may not be obligated to pay your investors their initial investment.
I have taken on a bank loan and I’ve also raised money from investors when my dream for She Takes on the World Inc. became bigger than my bank account. Bootstrapping and self-funding are definitely ideal for most entrepreneurs, but sometimes big dreams require external financing.
Consult a tax advisor who can assess your tax situation and the terms of any potential contractual agreement. The good news is money is out there. You just have to ask.
8) Remember Time is Currency
“Time is money” is a phrase coined by Benjamin Franklin. It’s one of those age-old euphemisms we can all relate to as we strive to make every minute count in our busy lives.
Nevertheless, I often meet fledgling entrepreneurs who have no clear business plan. To get results, you need to understand the value of your time and proper planning. How people manage their time is usually a pretty good indicator of how they manage a business.
Another way we unwittingly drain our resources is submitting to procrastination. Being effective means taking action today—not tomorrow or next week—now. It’s about sticking to a routine and moving forward a little bit each day to get the job done, i.e., scheduling payments, invoicing for products and services, and initiating client contact.
When you’re starting out and don’t have much revenue, time is your greatest commodity. Getting really clear about time management, as well as the how and why of what you want, lights a fire beneath you to act on your dreams.
9) Never Stop Learning
Formal education will take you to the boardroom, but self-education is a path to prosperity. People who know how to make money have a knack for learning about money. They fiercely focus on personal development as a tool for manifesting greatness.
They read books on budgeting, investing, insurance, and business development. (Side note: Everyone should read Think and Grow Rich, one of my faves). They attend financial building seminars, watch videos, listen to podcasts, and network to build their brand. The wealthy know developing the mind will lead to better business decisions each step of the way.
They don’t shy away from issues. They view problems as critical opportunities and dive right in. The rich self-educate to become stellar students of success.
Disclaimer: I am blogging on behalf of Visa Business and received compensation for my time from Visa for sharing my views in this post, but the views expressed here are solely mine, not Visa’s. Visit http://facebook.com/visasmallbiz to take a look at the reinvented Facebook Page: Well Sourced by Visa Business. The Page serves as a space where small business owners can access educational resources, read success stories from other business owners, engage with peers, and find tips to help businesses run more efficiently. Every month, the Page will introduce a new theme that will focus on a topic important to a small business owner’s success. For additional tips and advice, and information about Visa’s small business solutions, follow @VisaSmallBiz and visit http://visa.com/business.