Use the numbers of your business to guide you (and increase your prices)

Use the numbers of your business to guide and inspire you, not least because they are EVERYWHERE and readily available. From income and expenditure to social media insights and website traffic.

Today I’m going to focus on the financial numbers, the most important in my view and you need to know:

• How much it costs to operate your business.
• Have clarity of what you want to create (income)
• Know the amount you want to earn (how much you WILL pay yourself) and might be profit in your business.

Knowing your numbers, being in them and using them to make decisions (guide you) gives you confidence. Confidence to charge your worth and increase your pricing when necessary and this is how you value yourself and your client. Because when you’re not charging your worth, you are potentially holding yourself and the business stuck. You may be repelling your perfect client and worse not doing your best work.

How many times have you chosen a price and then discounted it? Decided on a price and then done it cheaper for someone saying ‘I’ve put my prices up but not for you because you are a friend or friend of a friend or we have the same breed of dog’? Okay, I’m being silly but we’ve all done it – yes me included although I don’t have a dog!

Firstly, let me assure you that you are not alone.

Not increasing your prices or fees for fear of losing clients, of what clients will think, even what the family will think. Not charging what you are worth because of the competition, not being qualified enough – experienced enough. We all do it, and I blame that pesky imposter syndrome and the games it plays with your mind. I can’t stress enough how important it is to get comfortable with your numbers. So you can:

• Recognise when you need to put your prices up and do so with confidence.
• Make decisions more quickly and then take the necessary action.
• Be pro-active instead of reactive, saving you time and money!
• Track your progress both financially and operationally.

But how can you do this? The first question to ask yourself is… how much does it cost to run my business?

This is the first step. Having clarity on this number will help you to work out what you need to ‘earn’ to cover costs. And should include what you will pay yourself as not paying yourself is the worst message you can possibly send to the universe – not to mention the damage it does to your mindset and the business.

Unless you know these numbers it will be very hard for you to see what is and isn’t working in the business. Plus, if you don’t have clarity on this you can’t make the necessary decisions to move forward.

Once you know what you NEED you can then decide what you WANT. And when I say need, I mean in a ‘this feels good’ NOT a constricted ‘that will do’ or ‘will keep my head above water’ kind of way.

WANT is that turnover number that has perhaps been bubbling under the surface and you keep pushing down. It might be the monthly income goal that you’ve been shying away from because you don’t (YET) believe it’s possible – but it is. If you can think, if it’s appearing for you, then it IS possible for you.

Knowing what you WANT will stop you tiptoeing around the subject of a price increase and apologising for it. It will allow you to finally see what you can achieve, expand your thinking and open up the possibilities for you and your business. It will create toe-tingling excitement and probably a little fear.

Feel into that fear.

When I feel fearful, anxious about plans, aspirations and dreams, I see it as a sign. A sign that it’s the right thing to do and from this place enjoy momentum and opportunities present themselves.

You are worthy of increasing your prices, not just to match what you need but to match what you want. You should do this from a place of confidence, and this will only come by knowing your numbers, embracing them and using them.

Remember, it is not your responsibility to decide whether your clients can afford to pay you what you are worth. In actual fact, by doing this you are not only devaluing yourself, but you are devaluing them as well. Your only responsibility is to set your prices and provide the very best possible service.

Feeling stuck or fearful right now?

Book a Clarity Coaching Call and let’s work through the fears and work out together what is holding you stuck. So you can make the necessary decisions and take the action. You can access my diary here and I can’t wait to meet you.