After teaching an in person business workshop a man came up to me and shared that he had made money in his business the past year but that when he paid his taxes at the end of the year he was left with NO MONEY.
This is a common story among entrepreneurs. As a matter of fact, when most clients start working with me and I teach them my Profit Strategy they instantly realize that they:
a) Have not been charging enough
b) Are not making any profit in their business
Here’s what you have to understand, just because you make money in your business it does not mean that you are making a profit.
Nobody starts a business to make zero dollars. This is the reason why I make it one of the primary things I teach my clients. Making a profit is what turns into what ultimately builds both your dream life and business.
Building a business is about scaling, growing and being able to provide for the lifestyle you want to have. So first, let’s shift your mindset around what you charge.
As an entrepreneur, you are now responsible for:
2.) Health Insurance
3) Business Expenses
4) Business Savings
5) Your own income
If you are charging, let’s say $20/hour, when you subtract taxes, insurance, expenses, etc. you are maybe left with $10 as take home pay.
Is $10 what you started your business to make? It’s less than minimum wage in pretty much all states, so you’re better off getting a minimum wage paying job that covers insurance, taxes and pays you more for take home page.
As a business owner, you have to not only think about what you want to make for yourself, but where you want to take your business and what it’s going to take to get there. You have to charge not only what you want to make for you, but what you want to make for your business.
As an entrepreneur, it’s not just about paying you, it’s about having a bigger vision for the company you want to build, even if it’s a small one.
One simple shift you can make right now to make a profit in your business is to double your pricing. So if you were charging $20/hour, start charging $40/hour. That way, you get to take home $20 and $20 stays in your business.
Making profitable revenue in your business is about charging in a way where you are thinking outside of just you. You are thinking about:
The vision you have for your business
Any employees/support you want to hire
Tools/resources you want to invest in
If you want to generate profitable revenue in your business, here’s what you need to do:
Shift your mindset
Start thinking about the business and life you want to have, not just what you want to make right now.
Shift your pricing
Now that you know your pricing needs to match your bigger vision, shift your pricing to match it. That means doubling it at minimum.
Start with these two steps and watch it change things in both your life and your business. Now, you’ll be able to invest, live, plan and grow more freely. You’ll become a thriving entrepreneur and a thriving entrepreneur becomes a profitable and successful one.