Tips for Talking Money
by: Admin
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by Robert Gerrish
Many business owners struggle when talking money with clients. This is a particularly uncomfortable topic for those who charge for their time - often freelancers, contractors or consultants. The reason frequently comes down to an issue of self-worth.
So how much are you worth and how do you ensure you get it?
Firstly let's look at the Top 5 side effects of this predicament to better understand its importance within your business.
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If you're blasé about money it sends signals that you're blasé in your work.
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If you're uncertain about your worth, your client will pick it up and status perceptions will diminish.
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A diminished status will very likely translate to reduced fees.
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If you're not seen to take your business seriously, you cannot expect others to.
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Being underpaid leads to resentment. Resentment does not build client relationships; it destroys them.
Before we go any further, let me make one thing clear: Having a great business is not, in my book, all about money. However, if the topic of money is a concern then it is a huge drain on YOU and will affect your enjoyment of your business and your ability to move forwards. So let's set about fixing it!
Step 1. Sell yourself to yourself
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To fully understand your worth you need to step back and look at the outcomes of your work. Ask yourself these questions:
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What do clients or customers get from me?
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In what way do I improve/contribute to their success?
As you answer these questions make sure you dig deep. Often we are so close to our business we forget the real value of our work. It can often help to ask for feedback from past clients, request a testimonial or talk to friends and colleagues. If you can't compile 15-20 responses to each question, go back and try again. You could try doing a search on the Internet under your business category and see what others are saying about themselves. Chances are you'll discover benefits that you've long since forgotten.
Step 2. Learn the distinction between 'Can clients afford me' vs 'Can clients afford not to use me'
If you've handled Step 1 fully, this should be easy. If it isn't easy you may need to look at your offerings and may benefit from adding value to your services in some way. How could you make yourself even more valued? Things to consider are:
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Giving a better service
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Introducing a more comprehensive follow-up
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Being generous with your knowledge by giving away more of what you know
Step 3. Get clear on why you need money
Try composing a Top 10 list of the reasons you need money. Be realistic and try not to include reasons that you've improperly created for yourself. If you've been frivolous or careless with money it's not the fault of your business or your clients.
Instead make your list accurate and honest. You should earn good money for good work, not excessive money to pay for past mistakes - that equation will not work and you'll forever be struggling with the topic of money.
Step 4. Where and when to discuss money
If you've gone through steps 1-3 without too much grief you should be feeling a little better about why you charge and what you charge. The question now is when do you raise the topic?
Clearly this can vary depending on the nature of your business. Generally I'd say talk about it when you know you should. Listen to that little voice in your head and for once, follow it.
If you're continually spending time with customers or clients only to find that when you mention money they run a mile, talk money earlier or look at what you're saying and how you are saying it.
We can often set perceptions without realising it. Consider the signals you're transmitting and make sure they are congruent with your fees.
Demonstrate that you're open on the topic of money and it will become less elusive in your business.
About the Author
Robert Gerrish supports business owners on a path to loving their work. From his base in Sydney, he coaches clients from the US, Europe & Australasia. To receive more of his tips subscribe to his Flying Solo ezine at http://www.flyingsolo.com.au
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