Many of us have money hang-ups in both our personal life and our business life. Do you? Did you when you started? One of the biggest reasons people talk themselves out of being an entrepreneur is money or lack thereof.
There are a few kinds of people who consider going into business as an entrepreneur.
Those who know how to manage the money or have the money to spend for a start-up.
And, then, there are those who go all in but with limited resources. They immediately feel the pressures to succeed, and succeed fast, because time and money are in short supply.
Money is often a constant concern, but in the beginning, it can be a dark stormy cloud over your head.
- Is there enough?
- Where is it needed the most?
- Did you spend it wisely?
- Are you running low on money?
- When will your business make money?
- Will people even want your service or product enough to pay for it?
- Was this all just a giant money pit of an idea?
If you do your research first, you'll save yourself from lots of financial headaches. Many new entrepreneurs will dive right in and simply hope for the best. If a lack of money is their main driving force, then their desired result can fail or do poorly.
There are many financial issues that commonly occur in the entrepreneurial world. Let's look at a few of the monetary problems that might be coming your way, and how to get through them without being paralyzed by fear in your business.
Is Your Bank Account Pressuring You to Play It Safe?
In business, we have to make all sorts of decisions, and some of them very quickly. What's more, we have to always be aware of the overall financial picture so we can make sound decisions.
Growth is expensive in many cases. For example, you may find your time slipping away and become desperate to have extra hands to help you. This means you'll have to pay for that extra hired help.
Fear of failure is the driving force behind many of the decisions we make. First of all, you really need to let go of the fear of failure. Fears hold you back. If you are playing it safe simply because you don't want to fail, you aren't making your decisions based on success. And honestly, failure isn't the end of the world.
Are You Charging Too Little for Your Service or Product?
Oftentimes when we first start out in business, we haven't done enough market research to find out what to charge others for our products or service. We want to be fair and reasonable. We want customer retention. We want them to spread the word to their friends and family and let the whole world buy from our business.
Therefore, we typically end up charging too little for our products or services thinking we will get lots of customers to get us started and we can always raise our prices later.
Here are a few things to consider before you get started that might keep your finances from ruling your pricing and bank account.
- Do the research and find out what others are charging, but more importantly what others are paying for the same thing you are offering in your business.
- What is your time worth?
- How much time do you spend filling an order or creating a product?
- Don't be afraid to ask for what you are worth.
Because if it's truly something the public needs or uses, they will pay for it.
Author: Jenn Alex Brockman