March 18, 2024 • 40 mins
Ever struggled with setting your prices or felt uncertain about the financial future of your business? You're not alone!
But the reality is that your money mindset, money story and those limiting beliefs walking around with you could be to blame.
So, in today's podcast Justine explores the often-unspoken tales we tell ourselves about money, and how reshaping those stories can revolutionise both our self-perception and business practices.
We're diving into the heart of those financial narratives you might be telling yourself, the power dynamic between fixed and growth mindsets, and how adopting a positive money approach through education and strategic influence can not only avert disaster but also attract prosperity and opportunity.
Finally, Justine tackles how mindset can influence your pricing decisions and why it's time to say farewell to hourly rates and embrace value-based pricing. It's all about value and has nothing to do with worth!
Let's take your money mindset from a source of stress to a pillar of strength as Justine equips you with the confidence to charge your value, stop trading hours for dollar and shift towards a business model that rewards outcomes over output.
So if you're ready to step into a future where your financial acumen is a testament to your business's success, this is the conversation you won't want to miss.
This episode is brought to you by Become A Business Money Magnet - Simple habits to manage your money and supercharge your profits!
Want 30 Ways to Save Money in your Business? Download the guide here.
Need a business finance coach or want to get your pricing sorted? Book a Strategy Call NOW.
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Connect with Justine:
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Follow Justine on Instagram @flossifiles or @secretsofsuccessfulbusiness
Host: Justine McLean – Flossi Creative
Producer: Leah Stanistreet – Snappystre...
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
You're listening to the Secrets of Successful
Business podcast, your go-tosource for business tips, tricks
and proven strategies that willhelp you create a streamlined
and profitable business.
We chat to the best minds inbusiness about their journey.
It's my business and I'll do itmy way, how they started,
rather than going harder to getmore focus on growing more with
(00:25):
what you have.
What they learned along the way.
How long are you going to givethis?
Speaker 2 (00:29):
What compromises are you going to make?
Just because you can do itdoesn't mean that you should do
it.
Speaker 1 (00:33):
It's really important to remember that it's a long
game and, of course, we'll askthem for their secret source for
creating a successful business.
If you're not failing, you'renot doing it right.
You should be struggling attimes.
That is part of the journey.
Join us as we take a sneak peekbehind the curtain, talk
solutions for those businesspain points, working smarter,
not harder, mindset and thechallenges of fitting it all in
(00:57):
with the demands of today's busylifestyle.
If you're a business owner,side hustler or just starting
your business journey, thispodcast is for you.
Now here's your host, businesscoach and content creator,
justine McLean from FawcysCreative.
Speaker 2 (01:13):
Hello and thanks for joining me on the podcast today.
In case we haven't met, I'mJustine, a small business owner
on a mission to uncover andshare the secrets of creating
and running a profitable,sustainable and successful
business.
I've been in business for over20 years now and I get to use
all that I've learned along theway to help other women in
business reduce the overwhelm,gain visibility around their
(01:37):
numbers, charge what they'reworth and make more money.
It's about designing a life youlove that fits into your
definition of success.
So if I can help you create theprofitable business you deserve
, please reach out Now withoutfurther ado.
Let's dive into today's episode.
Hello, welcome, and thank youfor tuning in to today's episode
(02:02):
.
I've been on the road for thelast six days travelling for
work, doing workshops, speakingevents at big conferences and
also working with some of myone-to-one clients, and it's so
lovely to be able to sit downacross a table and speak to them
in person.
There's no question about that.
(02:22):
But for anyone who knows me,you'll also know that I am
definitely an introvert and thathome is my happy place, so the
idea of getting in my car anddriving three hours to the big
smoke to do these things can bea little overwhelming and
there's a lot of thinking timeinvolved, which is sometimes a
(02:45):
good thing and sometimes are notso good thing.
But the interesting thing aboutbeing able to travel for work
and speak to lots of differentbusiness owners over several
days in these different settingsis that it allows me to really
take the temperature of business.
And we're in March now 2024.
(03:06):
And for most business owners,typically now would be the time
when we've recovered from thatpost Christmas fog, we've paid
off our credit cards, our kidsare back at school, they're
settled, we've probably coveredoff those bills and so things
start to pick up, particularlyhere in Australia.
(03:26):
I'm sure that internationallyfor all our international
listeners, hello there'll be avery similar pattern with your
businesses, where you have thoseebbs and flows, those seasons,
if you like, and a lot of themattached are attached to the
time of year, but also they'reattached to what's going on in
the wider community, the widereconomy, and also the
(03:50):
international events that arehappening that may be impacting
our businesses, and there's noquestion that there's been a
number of those.
But, as I said, by March of anytypical year in business,
things usually are looking upand people are really positive
about the way forward.
They're looking forward towhat's ahead for not only the
(04:13):
year but how they're going towrap up the financial year,
which ends here in Australia atthe end of June.
But the interesting thing aboutthis trip was that there was a
real sense of doom and gloomthat was sitting over most
business owners.
The truth was that, you know,business was slow.
People were saying no toservices, particularly retainer
(04:38):
services, continuing servicesbecause there just wasn't the
extra money to cover thoseservices, and so a lot of
business owners, sort of, werethrowing their hands up,
accepting.
That was just the case and, Isuppose, worrying, maybe rocking
in a corner, worried about whatthe next steps were.
(04:58):
But interestingly, over the lastfew days I've also given some
talks on money mindset and moneystories and how these impact
our business.
And there's no question thatyou know what you think about in
terms of money.
Your feelings, your thoughts,your beliefs and also your money
story can impact your business.
(05:20):
But when things get a littlebit tough, I think it just
shines a spotlight back on thosemoney stories that we tell
ourselves, on those beliefs thatmaybe were not good enough to
be doing what we're doing.
So in today's episode.
I thought I would share some ofmy learnings, some of the aha
(05:40):
moments, but, more importantly,share what I believe, or how I
believe money stories and moneymindset can impact your business
and how you know, when thingsare tough, when times are tough
and business is not going thatwell, that, rather than being in
a panic, we really need to leaninto this argument of value
(06:03):
versus worth.
So I'll get into that a littlebit more, because I think that's
really important.
So, first of all, what's a moneystory?
Well, a money story is justlike it sounds.
It's a story that either we'vebeen told when we were young or
that we tell ourselves based onsomething we've seen or we've
(06:24):
heard that we now believe to betrue.
The interesting thing aboutmoney stories is that they're
often just that.
They're often just stories.
So in my case, my money storywas very much around scarcity.
I remember my mum always sayingto me if I ask for something,
(06:45):
let me just go down to thebackyard, I'll dig up that jam
tin and we'll get the money thatway.
It seemed really silly, but Inthat one sentence I knew that
what my mum was saying wasessentially we can't afford it.
We barely have enough money forfood.
We certainly can't afford thatfrivolous thing that you want.
(07:06):
That really isn't important tothe scheme of things in the
scheme of things, and so youknow.
As a result, I realised thatmoney was this finite commodity.
In our house, it was somethingthat we needed to work hard for,
and my mum ingrained in me thatwork, earning money it was
(07:28):
simply about trading dollars forhours.
If you wanted more money, youhad to work more hours.
It was that simple.
There were no shortcuts,because money doesn't grow on
trees and you know, to be ableto spend money on the things
that you want and all thoseessential things, you need to
earn money.
So you need to work more.
(07:49):
And that is definitely a beliefthat I have carried with me
throughout my entire life thatto earn more, I needed to work
harder.
And certainly when I started myfirst business back in 1994,
that is exactly how I thoughtabout money.
I thought, okay, well, I wantto earn this much, so I need to
(08:11):
do this many hours at this rate.
And if I wanted to buysomething extra or we had an
unexpected bill, I knew thatmeant that I had to trade more
of my time for money.
My business was absolutely allabout trading dollars for hours,
and in addition to that, as I'dgone through school, just to
(08:31):
add to that money story ofscarcity, when we were doing
maths at school, which wascompulsory at the time, maths
was very much tailored forpeople who wanted to go to
university.
It still is, I guess, in 2024,no matter where you live in the
world but back then it was allabout formulas and equations and
(08:55):
things that I would never usein my life but that people who
were going to uni would use, andalso the way they taught maths
where I lived.
It was very much around mathsfor boys who wanted to go on and
become tradies, where theyneeded to learn how to measure
things.
So that made a lot of sensefrom that point of view, I guess
(09:16):
.
But as a result, I didn't wantto be a tradie.
I had hoped to go to university.
I didn't get there straightafter school, but that's another
story for another time.
But at the time I barely passedmaths, and so I remember my
teacher saying to me gosh, youknow you're not very good with
numbers, are you?
And so that story I'm so badwith numbers or I don't do
(09:38):
numbers was very much in my head.
So again roll forward to when Istarted that business in 1994.
Okay, I'm now trading dollarsfor hours, but I'm also thinking
continuously well, I don't donumbers and I'm really bad with
numbers, so I have to make sureI get these invoices right so
that I'm getting the money thatI deserve to earn for the hours
(10:02):
that I've worked.
It was a big stressor for me.
The point is here that we allhave a money story.
We all have something that isin our distant or maybe even
recent past, something thatwe've been told, that we've been
brought up to believe, that wecontinue to believe, whether
(10:23):
that is true or not.
So think about the things thatyou say, think about the things
that you believe when it comesto money and ask yourself what's
your money story?
Is it saying to your kids, well, we can't afford that, what a
waste of money.
And then, as you say, you catchyourself and you think hang on
a minute, that's something thatmy parents used to say to me.
(10:45):
Or is it that money doesn'tgrow on trees?
Or I'm a creative, I don't donumbers?
Does that go back to somethingthat you've been told way back?
When and when you start torecognise those stories, those
things that are popping intoyour head that you know are
beliefs from the past, maybethings, as I said, that are
(11:09):
family beliefs that you've beentold, or that you've been told
more recently by an accountantor maybe a fellow business owner
.
You need to ask yourselfwhether or not that story is
true Because, at the end of theday, it's just a story and, in
my opinion, we all have theability to change our story.
We all have that ability tochange our way forward, for
(11:32):
better or for worse, and that'sbased on the decisions that we
make.
So for me, as a business owner,it's really important to
understand the money story thatwe are carrying around with us.
So I want you to take a moment,reflect on your money story,
maybe on the impact that it'shaving on your business.
(11:54):
Write down things as you thinkabout them.
If you're not sure what yourmoney story is, and when you've
got a few things written down,just ask yourself is that really
true?
Is it true that I don't donumbers?
I mean, I certainly thought so.
I certainly thought that Ididn't do numbers In 2002, when
my husband and I opened retailstores and e-commerce stores and
(12:15):
we could no longer trade thattime for money.
I was in a position where I hadto make the business work and I
remember going to the accountantthat I had at the time and
saying well, I don't really donumbers.
I want this business to begreat, I want us to make money.
What is it that I have to do?
And she said to me okay, well,don't spend too much, just earn
(12:35):
more than you're spending.
Make sure you register for GSTbecause that was a thing at the
time, still is here in Australiaand just get your returns on
time.
Get your all your tax returnsand bits and pieces in on time
and you should be okay.
And that was it.
But it was very much in thecontext of well, if you don't do
numbers, there's probably not alot of hope for you.
(12:58):
Hopefully I can sort that outNow.
If you've ever listened to oneof my podcasts, you'll know that
my I Don't Do Numbers approachin that particular business led
pretty quickly to a $42,000 taxdebt, one that we had to kind of
dig our way out of very slowlyand it was really painful.
Turned out that tax debt wasnot my fault, even though I
(13:20):
might immediate default becauseof that money story.
I don't do numbers meant that Ithought yep, definitely not,
you know, definitely my fault.
See, don't do numbers bugger itup again.
So typical, just kind oftelling myself that that story
over and over again.
But as I say, that wasn't myfault, it was.
It turned out that it was anerror on behalf of the
(13:43):
accountant.
But just having that moneystory in the back of my head
back then particularly, it wasalmost crippling.
It almost stopped me goingforward.
But when I realized that Icould no longer tell myself this
story because while I had this$42,000 debt over my head and I
was in a business now where Icould no longer just trade time
(14:06):
for money.
I was selling toys, so it wasvery much an outcome based
service.
You pay the money.
The outcome is you get a greatquality item for your kids to
play with or to give as a gift.
I knew that I could no longerwallow in this money story that
I've been telling myself, andthat something had to give, that
I had to do something about it,and so what I chose to do was
(14:31):
to get educated, because thatwas really the only way I could
think of that.
I could change that story,because when I sat down and I
asked myself is it really true?
Are the stories that I'mtelling myself true?
Is money a scarce commodity?
No, because there'll always bemore money.
You can find other things to dothat are going to make you more
(14:53):
money.
So, no, that story isn't true.
Is it true that you're bad withmoney, that you don't do
numbers?
No, because you can choose tochange that.
You can choose to get educatedand change that.
So, as I said, I wouldencourage you to sit down, have
a think about your money story,work out what that story is for
(15:13):
you and then how it is impactingyour mindset, because your
money mindset is almost themanifestation of your money
story.
It is the way you know, thinkand feel about money on a day to
day basis, and it really doesinfluence how you handle
business decisions.
(15:34):
Now, in my experience, there arereally two sort of types of
mindset.
There is a very fixed mindsetand more of a growth mindset,
and in my opinion, neither oneof those mindsets are good or
bad.
They just are what they are.
It's the way you think aboutyour money, whether that's
personal money, whether that'sbusiness money, it's the money
(15:57):
that's coming into your life.
So a fixed mindset might meanthat you are quite stuck in your
ways, that you can becomeeasily overwhelmed when things
don't go the way that you expectthem to.
People with a fixed mindsettend to over-service and
undercharge, think that theyhave to pay their dues before
(16:17):
they can earn good money and canbe very, as I say, set in their
ways when it comes to money,whether that's business or in
their personal life, probablynot likely to take risks,
whereas someone with a growthmindset tends to be a more
expansive thinker, probablytends to take risks that are not
(16:39):
very calculated often, andsomeone who has a growth mindset
will often see challenges asways to improve things, ways to
make things better ways toovercome those obstacles.
So they tend to have a bit moreof an open mind about money.
(17:00):
It'd be like saying, oh well,that happened, it didn't cost us
too much, we can recover fromthat, let's move on.
So whether you fall into thefixed mindset or growth mindset,
in my opinion it doesn't reallymatter.
When it comes to business andmindset, the most important
thing for me is positivityaround money, so that positive
(17:24):
money mindset, because it canreally be the fuel to grow your
business.
I think that when you feelpositively about money,
regardless of what sort ofmindset you have, regardless of
what sort of money story you'vebeen telling yourself, you get
educated, so those financialtasks will become less daunting.
(17:45):
You'll feel more confident.
You might be in ties to takecalculated risks and to make
investments that you wouldn'tnormally make, because you know
what's going on.
You know and understand themoney landscape, that you're
working with People who have apositive attitude towards money
and to their business, reallyproject that, and so it helps
(18:09):
you attract more opportunities,more clients, more partnerships
and more money.
They say abundance attractsabundance, and I think that
positivity is definitely a wayof doing that.
Having a positive money mindsetwhether, as I say, whether
you've got a fixed or growthmindset as your default, no
(18:29):
matter what your money story is,but having that positive
mindset can help you make smartchoices and these smart choices
can lead to really healthyfinancial outcomes.
A positive mindset can makesetbacks easier to overcome.
I think it's one of thosethings that's, you know, really
(18:49):
important in business.
So you will definitely have amindset, a way you think and
feel about money, and so I wantyou to take a moment and sit
down and think about, on a dayto day basis, how you think, how
you feel and how you react whenit comes to money and money
(19:10):
coming in and out of yourbusiness.
I know that in my program,business money magnet, we had a
discussion just this week aboutmindset and how everybody is
feeling right now because, likeso many other business owners,
like a lot of business ownersthat I've been talking to over
the last week, people are reallystarting to feel that pull of
(19:32):
our clients backing away,they're not being as much
business around and it doesimpact your mindset, because I
think when things aren't goingright, when you do something,
when you have a launch and it'sdisappointing or it doesn't
quite hit the mark that youwanted it to hit.
When you think that you mighthave a new client and for some
(19:52):
reason, that doesn't pan out,when you don't get the sales
that are coming through, thepeople who are walking through
your store, the people who arecoming to take advantage of your
services, you're definitelygoing to have a reaction
disappointment, upset, concern,worry.
All of those things are reallynormal and natural, but your
(20:15):
money mindset is what is goingto drive those things and
continue to drive those feelingsas you move forward.
And unless your mindset ispositive, in these times when
things are not going as well aswe'd like them to, it can be
really difficult to continuallymotivate ourselves to move
(20:36):
forward as business owners, tokeep trying to keep going,
because, honestly, over the last30 years in business, there
have been so many peaks andtroughs, so many seasons, so
many things that have happenedin my business, individually and
collectively in business, thathave meant that resilience and
(20:57):
positivity are the things thatwe really need to lean on to
pull through.
And so, if you believe thatmaybe your mindset is letting
you down right now, I wouldagain encourage you to grab a
notepad as you think of thesethings, write them down and then
ask yourself well, how can Iovercome this?
(21:18):
Is it worth doing meditation tocalm your mind and all listen
to a positive money mantra, forexample, to really get that
positivity back into your life?
Do you need to call on thatfriend, that mate who is in
business, who always has apositive and energetic spin on
(21:39):
things?
What is it that you can do toovercome this time in your
business and get that mindset incheck?
I think the other thing to thinkabout is when we're thinking of
mindset and we think of moneystories.
Money stories and our mindsetoften start with the limiting
beliefs that we're carryingaround, because they both inform
(22:01):
those limiting beliefs.
So whether it is something likeI'm not good with numbers,
that's a limiting belief.
I can't handle the finances.
Limiting belief Money makes yougreedy, money isn't great
another limiting belief.
And so mindset, money storiesthey all inform and feed our
limiting beliefs.
(22:21):
And quite often it's gettingpast those limiting beliefs,
dealing with those that are alsogoing to help your mindset and
the way you choose to moveforward, particularly when
things are a little tight.
And so, to overcome thoselimiting beliefs and to get your
mindset back in check, back onthe positive road, some of the
(22:45):
things that I would encourageyou to do are to get educated,
particularly when it comes tomoney.
There are lots of great courses, programs, books out there.
Obviously, I have a programwhich is business money magnet
12 month program.
I've got a brand new bookcoming out in June called Become
a Business Money Magnet andtied in with that I actually
(23:09):
have a day long learning in Junewhich is going to show you all
of the bits and pieces that youneed to become you know that
business money magnet to reallyunderstand your finances.
So they're just a few of thethings that I do.
There'll always be lots of them.
So if you need some education,go check out my website, but if
(23:30):
I'm not, your girl go and lookfor someone to help you get
educated specifically in themoney, who's going to help you
tackle some of those mindsetissues but, in addition, give
you the practical tools that youneed to improve your finances
so, when things do get tough,that you know exactly what to do
(23:51):
next.
The other thing that I would sayto you particularly you know
around this time where thingsare a little tough and those
limiting beliefs start to feedus is to really set a financial
goal and lean into that goal.
So many of us will go and setgoals for the next quarter, the
half year of the year, andthey'll all be around.
(24:14):
The stuff that we have to do inour business generally, the
offer that we have to create,the bums that we want to get on
seats.
None of them are usuallyspecifically tied to a dollar
number, but I really want you tothink about the financial goal.
So, whether it's a dollarnumber that you want to achieve
for your turnover, whether it'sa wage that you want to start to
(24:37):
pay yourself and the dollarnumber that is attached to that,
whether it is simply getting ahandle on the finances and
dedicating an hour or week totackling all of that business
money stuff, or it might befinding a new accountant or
bookkeeper, someone you can workwith on a regular basis who is
really going to help inform youwhen it comes to the business
(25:00):
money.
That's another way to help youovercome your limiting beliefs
and get positive around mindset.
Really important to ask for helpwhen it comes to money mindset,
overcoming limiting beliefs andyour accountant, bookkeeper or
a good money mentor are theplaces to start, and the other
one is to celebrate even thesmall stuff in your business.
(25:22):
I think so often we areconditioned to celebrating the
big stuff and even then,particularly here in Australia,
we don't really like to blow ourtrumpet too hard because people
don't like that generally.
But there's nothing stoppingyou celebrating your wins.
Even the small things Got uptoday, stayed positive.
(25:43):
Did the things on your to-dolist for your business, got the
kids fed and into bed at areasonable hour?
Check Worth celebrating that,worth taking half an hour to
watch your favorite TV program,worth having the tomorrow
morning off so that you can gofor a walk down in the beach or
(26:04):
do one of your favorite things?
Definitely worth celebrating.
Now, all of this talk on moneystories, money mindset,
overcoming limiting beliefs andhow it's important to do those
things right now, when thingsaren't flash in business, are
all leading me to this idea ofthe difference between value and
(26:27):
worth, and so many of us haveheard the saying.
So you know what are you worth?
Charge your worth.
What's an hour of your timeworth?
There's lots of sayings thattie back into our worth as
business owners, but I'm callingBS on the whole idea of worth
(26:49):
Because in my opinion, yourworth is simply what someone
else decides they're happy topay you, and that has absolutely
nothing to do with you.
And I'm going to say that onemore time your worth is what
someone else decides they arehappy or willing to pay you, and
that has nothing to do with you.
(27:10):
So if you're the person who'scharging dollars for hours, I'm
sure that you have had adiscovery call with someone or a
sales call with someone wherethey ask you so how much do you
charge per hour?
In other words, what is an hourof your time worth?
But I think we need to stoptalking about worth, stop
(27:32):
equating everything back to whatan hour of our time is worth,
and start to think about value.
So what is the value that youprovide to your clients?
What is the transformation thatyou can create, the problem
that you can solve, the time youcan save, the money that you
(27:55):
can save your client byproviding the services you
provide, the expertise you offer.
What's the value of that?
Your IP, so your intellectualproperty, that stuff that you
know, that you have collectedover many years in business and
life what's that you know?
What's the value of that?
It's that unique perspectivethat you bring to your business
(28:17):
and to the services you offer,the support you share, the
network you offer and the impactthat you make for your clients,
and so they are all the thingsthat go into the value that you
provide.
And it's time to start talkingabout value, what you can offer
(28:37):
in exchange for whatever itcosts you for the service, the
product, the offer that youprovide.
And for a lot of you who aretrading time for money, who are
still charging hourly rates, youmight be thinking well, how do
I do that?
How do I change that?
Because you know well, there'snothing wrong with an hourly
(28:59):
rate.
In my opinion, if you areoffering a service rather than a
physical product, I thinkcharging an hourly rate, trading
time for money, means a coupleof things.
You know you only have a finitenumber of hours in every week
that you're working, that youcan physically trade that time
(29:22):
for money.
There's only a finite number ofhours because you have to sleep
, you have to take care ofyourself, you've most likely got
family obligations and ifyou're running a business, not
all of your hours are going tobe billable.
There's all that admin stuffthat you need to do in the
background, and so, unless youare charging a really high
(29:43):
hourly rate and you are gettinga fantastic conversion because
you've got lots of clients whoare prepared to pay you at that
high hourly rate.
In all likelihood, you aregoing to have to really hustle
to earn the money that you wantto earn, to cover the cost of
doing business and to payyourself the wage that you want.
(30:03):
However, if you were to embracethe idea of value and to start
to charge for an outcome, thenagain, in my opinion, I think
the sky becomes the limit toyour earning capacity and what
your business can do.
So what do I mean by an outcome?
(30:25):
Well, as I said back in my toyshop days, the outcome was that
you know my customer would handover money and, in exchange, the
outcome would be this beautifulproduct that they had to give
to their kids or that they hadto give as a present.
The outcome that you offer arethe services that you provide.
So, for example, if I use a VAas an example, perhaps you hire
(30:49):
a VA to keep your social mediain check, or perhaps you hire a
social media specialist to dothat.
Essentially, the outcome thatyou're after is that you want
your social media finished, doneevery week.
You want things posted andscheduled.
You want someone to monitoryour engagement, potentially to
make a comment on your socialposts.
(31:12):
You want a strategy for yoursocial media.
The outcome is that you want apositive experience with social
media that you don't have toworry about, that you're
employing someone else to takethat off your hands, and so that
is the outcome.
If you are employing a VA tolook after all the admin stuff,
(31:33):
then the outcome might be a zeroinbox at the end of every week
and every email that has comeinto the business dealt with.
If you are working with me, forexample, the outcome would be
that you are looking to improveyour profit.
You're looking to understandhow to run a profitable business
and to make more money, and sowhen I help you to achieve that
(31:55):
is the outcome that you're afterThinking about outcome pricing.
What you're doing is you're nolonger trading dollars for hours
.
You're now trading an outcomefor a price, and so that means
that there will be no moresquabbling over hourly rates.
Gosh, how come it took you thatlong to deliver that particular
(32:19):
service thing?
It's just.
Here's the price.
I'm telling you the price upfront.
For this price, you get thisoutcome.
Here's the value that this isgoing to offer you and people
will either take that or theywon't.
It's pretty simple, right?
So you sell that before youeven start.
You sell the outcome, you sellthe price, and so at the end of
(32:41):
it, there's going to be nocomplaining about how many hours
you spent doing the thing thatyou have been engaged to do,
because you've delivered theoutcome.
If you don't deliver the outcome, well then sure, somebody can
scoople and complain over yourprice, but that's the difference
.
The other thing is, when youcharge for outcome, it's much
(33:05):
easier to increase your rateswhen you need to, because, no
matter what price you arecharging whether it's an hourly
rate or whether it's an outcomebased price your pricing has to
cover the cost of doing business, has to cover your wages, has
to cover your superannuation,has to cover your savings the
money that you need to pay fortax and those rainy day savings
(33:26):
and it has to cover a profit foryour business, that
unencumbered money, the moneythat's left over at the end that
you can do whatever you likewith.
So, no matter how you charge,you need to cover off those
things.
But if you get to a point inyour business where the hourly
rate needs to go up and let's goback to the VA as an example.
(33:48):
If you've been working with a VAwho's been consistently
charging $45 an hour and all ofa sudden they come to you and
they say, look, my rate's goingup to $65 or $75 an hour, what
I'm offering you is stillexactly the same, the work I'm
going to do for you is stillexactly the same, but now it's
worth $20 or $30 more an hour.
You're going to look at thatperson like they're insane
(34:09):
because CPI is not tracking thathigh.
Surely their experience hasn'timproved that much over the
course of 12 months.
Why am I paying you all thisextra?
A couple of dollars, yes, but$20, $30, wow, no way.
And so it's almost like a stopto you scaling your business, to
(34:30):
improving your business, toimproving your profitability, to
being able to give yourself awage increase, because you've
tied yourself in to an hourlyrate where you're trading time
for money and there's often noturning back from that, or when
you go to increase, it can justbe a marginal increase.
(34:50):
So if you are currently doingthat, if you are currently
focused on worth rather thanvalue, think about changing that
up.
And if you are currentlytrading dollars for hours, even
if that is in the you know, byway of a retainer or a package
of five hours or 10 hours ofyour time, then think about
(35:12):
changing that.
I know your next question isgoing to be well, how do I make
that change?
How do I go from trading timefor money dollars for hours to
outcome based pricing?
And it's actually simpler thanyou think.
First step is to sit down andhave a think about what your
offers are, what you aretypically offering people and
(35:32):
those people that you're workingwith on a regular basis,
especially when you're workingfor them for a regular five or
10 hours a week.
You can look at what you'redoing for them and say, ok, you
know, you're typically paying$450 a week for 10 hours of my
time and this is what I amdelivering for that.
And so you can come up withpackages a bronze, silver, gold
(35:56):
package that you can go back tothat client and say, look, I'm
moving to a package basedoffering or I'm moving to
outcome based pricing in mybusiness rather than trading
dollars for hours.
It's just going to make thingseasier on the back end with our
billing and time tracking andthat sort of stuff.
And so you know, when I look atyour business as it is now and
(36:20):
what I'm delivering for you inthat time frame, your rate is
going to be X and this is whatI'm going to be delivering for
you.
You can still charge a packageof $450 for that client, but one
would think that after you'veworked with them for a while,
after you have, you know, beenfocused on their work for a
while, that you would be able todeliver that 10 hours of work
(36:45):
in a more efficient way than youdid when you first started.
So, rather than packing moreand more into that 10 hours, if
you are simply delivering thesame sort of service that you
started, you know, with when youfirst began working with that
client, continue to deliver thatservice, continue to charge
$450 now, but realize that byputting together some more
(37:10):
efficient systems and processesand really implementing those
efficiencies, you can actuallydeliver that service in eight
hours.
And so now, instead of getting$45 an hour by delivering the
same service in eight hoursinstead of 10, you've actually
just given yourself a pay riseand you're now earning $56 an
(37:31):
hour, so an immediate $11 anhour increase.
So you can see how that canwork.
You can simply explain to yourclient that's what's happening.
If there is additional workthat that client wants you to do
for them, sure you can chargethat at an hourly rate, but you
can explain to them that you'veactually increased your prices
(37:51):
since you started working withthem.
Your new rate is $56 an hourand that you can do that extra
work for an hourly rate.
There's nothing wrong withhaving that hybrid.
But by moving more of yourbusiness to outcome based
pricing whether you're a VA,whether you're a coach, whether
you are a social media manager,whether you are a graphic
(38:12):
designer or a copywriter I thinkthat in the end, everybody is
happy.
You know, for a start, you getpaid, what you want to get paid
and in addition to that, I thinkthat the people who are working
with you know what to expectevery month.
They know what they're going topay, they know the outcome that
they will receive and they'rehappy.
(38:33):
You're happy, they're happy.
And if the workload increasesand you're finding that that
package no longer covers thatworkload, you can always move
them up or down a package.
So I want you to have a thinkabout that right now,
particularly as we are in thistime in business where things
(38:57):
are a little leaner than theyare.
They're leaner than theyprobably were 12 or 18 months
ago.
Start to think about how yourmoney story and your mindset and
those limiting beliefs areimpacting your business and how
those feed in to your sense ofvalue versus worth, how other
people perceive your worth.
(39:19):
Do you need to change that sothey're recognizing your value?
And do you need to change yourmessaging so that your value,
what you offer, the outcome, thetransformation, the problem
that you solve his front andcenter in your business?
And do you then, as a result ofall of that, need to start
(39:40):
thinking about the prices thatyou charge, so that people are
paying for your value instead ofpaying for your worth?
Because, as I said that yourworth is something that somebody
else decides that they're happyto pay you and that's got
nothing to do with you.
(40:01):
So I would love to hear yourthoughts on your money story,
money mindset, how you overcomethose limiting beliefs, and
whether or not you have decidedto embrace value based or
outcome based pricing and ifthat is making a difference in
your business.
So, until next time, keepliving your definition of
(40:26):
success.
Speaker 1 (40:26):
Thanks for listening to the secrets of successful
business podcast.
For more information on allthings business, head to
flossycomau and make sure youhit subscribe on the show so you
don't miss another new episode.
If you're enjoying the show,please give it a quick rating or
review, share it on yoursocials or with friends who
might enjoy it.
(40:46):
Catch you next time.
You're listening to the Secrets of Successful
Business podcast, your go-tosource for business tips, tricks
and proven strategies that willhelp you create a streamlined
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We chat to the best minds inbusiness about their journey.
It's my business and I'll do itmy way, how they started,
rather than going harder to getmore focus on growing more with
(00:25):
what you have.
What they learned along the way.
How long are you going to givethis?
Speaker 2 (00:29):
What compromises are you going to make?
Just because you can do itdoesn't mean that you should do
it.
Speaker 1 (00:33):
It's really important to remember that it's a long
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If you're not failing, you'renot doing it right.
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Join us as we take a sneak peekbehind the curtain, talk
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(00:57):
with the demands of today's busylifestyle.
If you're a business owner,side hustler or just starting
your business journey, thispodcast is for you.
Now here's your host, businesscoach and content creator,
justine McLean from FawcysCreative.
Speaker 2 (01:13):
Hello and thanks for joining me on the podcast today.
In case we haven't met, I'mJustine, a small business owner
on a mission to uncover andshare the secrets of creating
and running a profitable,sustainable and successful
business.
I've been in business for over20 years now and I get to use
all that I've learned along theway to help other women in
business reduce the overwhelm,gain visibility around their
(01:37):
numbers, charge what they'reworth and make more money.
It's about designing a life youlove that fits into your
definition of success.
So if I can help you create theprofitable business you deserve
, please reach out Now withoutfurther ado.
Let's dive into today's episode.
Hello, welcome, and thank youfor tuning in to today's episode
(02:02):
.
I've been on the road for thelast six days travelling for
work, doing workshops, speakingevents at big conferences and
also working with some of myone-to-one clients, and it's so
lovely to be able to sit downacross a table and speak to them
in person.
There's no question about that.
(02:22):
But for anyone who knows me,you'll also know that I am
definitely an introvert and thathome is my happy place, so the
idea of getting in my car anddriving three hours to the big
smoke to do these things can bea little overwhelming and
there's a lot of thinking timeinvolved, which is sometimes a
(02:45):
good thing and sometimes are notso good thing.
But the interesting thing aboutbeing able to travel for work
and speak to lots of differentbusiness owners over several
days in these different settingsis that it allows me to really
take the temperature of business.
And we're in March now 2024.
(03:06):
And for most business owners,typically now would be the time
when we've recovered from thatpost Christmas fog, we've paid
off our credit cards, our kidsare back at school, they're
settled, we've probably coveredoff those bills and so things
start to pick up, particularlyhere in Australia.
(03:26):
I'm sure that internationallyfor all our international
listeners, hello there'll be avery similar pattern with your
businesses, where you have thoseebbs and flows, those seasons,
if you like, and a lot of themattached are attached to the
time of year, but also they'reattached to what's going on in
the wider community, the widereconomy, and also the
(03:50):
international events that arehappening that may be impacting
our businesses, and there's noquestion that there's been a
number of those.
But, as I said, by March of anytypical year in business,
things usually are looking upand people are really positive
about the way forward.
They're looking forward towhat's ahead for not only the
(04:13):
year but how they're going towrap up the financial year,
which ends here in Australia atthe end of June.
But the interesting thing aboutthis trip was that there was a
real sense of doom and gloomthat was sitting over most
business owners.
The truth was that, you know,business was slow.
People were saying no toservices, particularly retainer
(04:38):
services, continuing servicesbecause there just wasn't the
extra money to cover thoseservices, and so a lot of
business owners, sort of, werethrowing their hands up,
accepting.
That was just the case and, Isuppose, worrying, maybe rocking
in a corner, worried about whatthe next steps were.
(04:58):
But interestingly, over the lastfew days I've also given some
talks on money mindset and moneystories and how these impact
our business.
And there's no question thatyou know what you think about in
terms of money.
Your feelings, your thoughts,your beliefs and also your money
story can impact your business.
(05:20):
But when things get a littlebit tough, I think it just
shines a spotlight back on thosemoney stories that we tell
ourselves, on those beliefs thatmaybe were not good enough to
be doing what we're doing.
So in today's episode.
I thought I would share some ofmy learnings, some of the aha
(05:40):
moments, but, more importantly,share what I believe, or how I
believe money stories and moneymindset can impact your business
and how you know, when thingsare tough, when times are tough
and business is not going thatwell, that, rather than being in
a panic, we really need to leaninto this argument of value
(06:03):
versus worth.
So I'll get into that a littlebit more, because I think that's
really important.
So, first of all, what's a moneystory?
Well, a money story is justlike it sounds.
It's a story that either we'vebeen told when we were young or
that we tell ourselves based onsomething we've seen or we've
(06:24):
heard that we now believe to betrue.
The interesting thing aboutmoney stories is that they're
often just that.
They're often just stories.
So in my case, my money storywas very much around scarcity.
I remember my mum always sayingto me if I ask for something,
(06:45):
let me just go down to thebackyard, I'll dig up that jam
tin and we'll get the money thatway.
It seemed really silly, but Inthat one sentence I knew that
what my mum was saying wasessentially we can't afford it.
We barely have enough money forfood.
We certainly can't afford thatfrivolous thing that you want.
(07:06):
That really isn't important tothe scheme of things in the
scheme of things, and so youknow.
As a result, I realised thatmoney was this finite commodity.
In our house, it was somethingthat we needed to work hard for,
and my mum ingrained in me thatwork, earning money it was
(07:28):
simply about trading dollars forhours.
If you wanted more money, youhad to work more hours.
It was that simple.
There were no shortcuts,because money doesn't grow on
trees and you know, to be ableto spend money on the things
that you want and all thoseessential things, you need to
earn money.
So you need to work more.
(07:49):
And that is definitely a beliefthat I have carried with me
throughout my entire life thatto earn more, I needed to work
harder.
And certainly when I started myfirst business back in 1994,
that is exactly how I thoughtabout money.
I thought, okay, well, I wantto earn this much, so I need to
(08:11):
do this many hours at this rate.
And if I wanted to buysomething extra or we had an
unexpected bill, I knew thatmeant that I had to trade more
of my time for money.
My business was absolutely allabout trading dollars for hours,
and in addition to that, as I'dgone through school, just to
(08:31):
add to that money story ofscarcity, when we were doing
maths at school, which wascompulsory at the time, maths
was very much tailored forpeople who wanted to go to
university.
It still is, I guess, in 2024,no matter where you live in the
world but back then it was allabout formulas and equations and
(08:55):
things that I would never usein my life but that people who
were going to uni would use, andalso the way they taught maths
where I lived.
It was very much around mathsfor boys who wanted to go on and
become tradies, where theyneeded to learn how to measure
things.
So that made a lot of sensefrom that point of view, I guess
(09:16):
.
But as a result, I didn't wantto be a tradie.
I had hoped to go to university.
I didn't get there straightafter school, but that's another
story for another time.
But at the time I barely passedmaths, and so I remember my
teacher saying to me gosh, youknow you're not very good with
numbers, are you?
And so that story I'm so badwith numbers or I don't do
(09:38):
numbers was very much in my head.
So again roll forward to when Istarted that business in 1994.
Okay, I'm now trading dollarsfor hours, but I'm also thinking
continuously well, I don't donumbers and I'm really bad with
numbers, so I have to make sureI get these invoices right so
that I'm getting the money thatI deserve to earn for the hours
(10:02):
that I've worked.
It was a big stressor for me.
The point is here that we allhave a money story.
We all have something that isin our distant or maybe even
recent past, something thatwe've been told, that we've been
brought up to believe, that wecontinue to believe, whether
(10:23):
that is true or not.
So think about the things thatyou say, think about the things
that you believe when it comesto money and ask yourself what's
your money story?
Is it saying to your kids, well, we can't afford that, what a
waste of money.
And then, as you say, you catchyourself and you think hang on
a minute, that's something thatmy parents used to say to me.
(10:45):
Or is it that money doesn'tgrow on trees?
Or I'm a creative, I don't donumbers?
Does that go back to somethingthat you've been told way back?
When and when you start torecognise those stories, those
things that are popping intoyour head that you know are
beliefs from the past, maybethings, as I said, that are
(11:09):
family beliefs that you've beentold, or that you've been told
more recently by an accountantor maybe a fellow business owner
.
You need to ask yourselfwhether or not that story is
true Because, at the end of theday, it's just a story and, in
my opinion, we all have theability to change our story.
We all have that ability tochange our way forward, for
(11:32):
better or for worse, and that'sbased on the decisions that we
make.
So for me, as a business owner,it's really important to
understand the money story thatwe are carrying around with us.
So I want you to take a moment,reflect on your money story,
maybe on the impact that it'shaving on your business.
(11:54):
Write down things as you thinkabout them.
If you're not sure what yourmoney story is, and when you've
got a few things written down,just ask yourself is that really
true?
Is it true that I don't donumbers?
I mean, I certainly thought so.
I certainly thought that Ididn't do numbers In 2002, when
my husband and I opened retailstores and e-commerce stores and
(12:15):
we could no longer trade thattime for money.
I was in a position where I hadto make the business work and I
remember going to the accountantthat I had at the time and
saying well, I don't really donumbers.
I want this business to begreat, I want us to make money.
What is it that I have to do?
And she said to me okay, well,don't spend too much, just earn
(12:35):
more than you're spending.
Make sure you register for GSTbecause that was a thing at the
time, still is here in Australiaand just get your returns on
time.
Get your all your tax returnsand bits and pieces in on time
and you should be okay.
And that was it.
But it was very much in thecontext of well, if you don't do
numbers, there's probably not alot of hope for you.
(12:58):
Hopefully I can sort that outNow.
If you've ever listened to oneof my podcasts, you'll know that
my I Don't Do Numbers approachin that particular business led
pretty quickly to a $42,000 taxdebt, one that we had to kind of
dig our way out of very slowlyand it was really painful.
Turned out that tax debt wasnot my fault, even though I
(13:20):
might immediate default becauseof that money story.
I don't do numbers meant that Ithought yep, definitely not,
you know, definitely my fault.
See, don't do numbers bugger itup again.
So typical, just kind oftelling myself that that story
over and over again.
But as I say, that wasn't myfault, it was.
It turned out that it was anerror on behalf of the
(13:43):
accountant.
But just having that moneystory in the back of my head
back then particularly, it wasalmost crippling.
It almost stopped me goingforward.
But when I realized that Icould no longer tell myself this
story because while I had this$42,000 debt over my head and I
was in a business now where Icould no longer just trade time
(14:06):
for money.
I was selling toys, so it wasvery much an outcome based
service.
You pay the money.
The outcome is you get a greatquality item for your kids to
play with or to give as a gift.
I knew that I could no longerwallow in this money story that
I've been telling myself, andthat something had to give, that
I had to do something about it,and so what I chose to do was
(14:31):
to get educated, because thatwas really the only way I could
think of that.
I could change that story,because when I sat down and I
asked myself is it really true?
Are the stories that I'mtelling myself true?
Is money a scarce commodity?
No, because there'll always bemore money.
You can find other things to dothat are going to make you more
(14:53):
money.
So, no, that story isn't true.
Is it true that you're bad withmoney, that you don't do
numbers?
No, because you can choose tochange that.
You can choose to get educatedand change that.
So, as I said, I wouldencourage you to sit down, have
a think about your money story,work out what that story is for
(15:13):
you and then how it is impactingyour mindset, because your
money mindset is almost themanifestation of your money
story.
It is the way you know, thinkand feel about money on a day to
day basis, and it really doesinfluence how you handle
business decisions.
(15:34):
Now, in my experience, there arereally two sort of types of
mindset.
There is a very fixed mindsetand more of a growth mindset,
and in my opinion, neither oneof those mindsets are good or
bad.
They just are what they are.
It's the way you think aboutyour money, whether that's
personal money, whether that'sbusiness money, it's the money
(15:57):
that's coming into your life.
So a fixed mindset might meanthat you are quite stuck in your
ways, that you can becomeeasily overwhelmed when things
don't go the way that you expectthem to.
People with a fixed mindsettend to over-service and
undercharge, think that theyhave to pay their dues before
(16:17):
they can earn good money and canbe very, as I say, set in their
ways when it comes to money,whether that's business or in
their personal life, probablynot likely to take risks,
whereas someone with a growthmindset tends to be a more
expansive thinker, probablytends to take risks that are not
(16:39):
very calculated often, andsomeone who has a growth mindset
will often see challenges asways to improve things, ways to
make things better ways toovercome those obstacles.
So they tend to have a bit moreof an open mind about money.
(17:00):
It'd be like saying, oh well,that happened, it didn't cost us
too much, we can recover fromthat, let's move on.
So whether you fall into thefixed mindset or growth mindset,
in my opinion it doesn't reallymatter.
When it comes to business andmindset, the most important
thing for me is positivityaround money, so that positive
(17:24):
money mindset, because it canreally be the fuel to grow your
business.
I think that when you feelpositively about money,
regardless of what sort ofmindset you have, regardless of
what sort of money story you'vebeen telling yourself, you get
educated, so those financialtasks will become less daunting.
(17:45):
You'll feel more confident.
You might be in ties to takecalculated risks and to make
investments that you wouldn'tnormally make, because you know
what's going on.
You know and understand themoney landscape, that you're
working with People who have apositive attitude towards money
and to their business, reallyproject that, and so it helps
(18:09):
you attract more opportunities,more clients, more partnerships
and more money.
They say abundance attractsabundance, and I think that
positivity is definitely a wayof doing that.
Having a positive money mindsetwhether, as I say, whether
you've got a fixed or growthmindset as your default, no
(18:29):
matter what your money story is,but having that positive
mindset can help you make smartchoices and these smart choices
can lead to really healthyfinancial outcomes.
A positive mindset can makesetbacks easier to overcome.
I think it's one of thosethings that's, you know, really
(18:49):
important in business.
So you will definitely have amindset, a way you think and
feel about money, and so I wantyou to take a moment and sit
down and think about, on a dayto day basis, how you think, how
you feel and how you react whenit comes to money and money
(19:10):
coming in and out of yourbusiness.
I know that in my program,business money magnet, we had a
discussion just this week aboutmindset and how everybody is
feeling right now because, likeso many other business owners,
like a lot of business ownersthat I've been talking to over
the last week, people are reallystarting to feel that pull of
(19:32):
our clients backing away,they're not being as much
business around and it doesimpact your mindset, because I
think when things aren't goingright, when you do something,
when you have a launch and it'sdisappointing or it doesn't
quite hit the mark that youwanted it to hit.
When you think that you mighthave a new client and for some
(19:52):
reason, that doesn't pan out,when you don't get the sales
that are coming through, thepeople who are walking through
your store, the people who arecoming to take advantage of your
services, you're definitelygoing to have a reaction
disappointment, upset, concern,worry.
All of those things are reallynormal and natural, but your
(20:15):
money mindset is what is goingto drive those things and
continue to drive those feelingsas you move forward.
And unless your mindset ispositive, in these times when
things are not going as well aswe'd like them to, it can be
really difficult to continuallymotivate ourselves to move
(20:36):
forward as business owners, tokeep trying to keep going,
because, honestly, over the last30 years in business, there
have been so many peaks andtroughs, so many seasons, so
many things that have happenedin my business, individually and
collectively in business, thathave meant that resilience and
(20:57):
positivity are the things thatwe really need to lean on to
pull through.
And so, if you believe thatmaybe your mindset is letting
you down right now, I wouldagain encourage you to grab a
notepad as you think of thesethings, write them down and then
ask yourself well, how can Iovercome this?
(21:18):
Is it worth doing meditation tocalm your mind and all listen
to a positive money mantra, forexample, to really get that
positivity back into your life?
Do you need to call on thatfriend, that mate who is in
business, who always has apositive and energetic spin on
(21:39):
things?
What is it that you can do toovercome this time in your
business and get that mindset incheck?
I think the other thing to thinkabout is when we're thinking of
mindset and we think of moneystories.
Money stories and our mindsetoften start with the limiting
beliefs that we're carryingaround, because they both inform
(22:01):
those limiting beliefs.
So whether it is something likeI'm not good with numbers,
that's a limiting belief.
I can't handle the finances.
Limiting belief Money makes yougreedy, money isn't great
another limiting belief.
And so mindset, money storiesthey all inform and feed our
limiting beliefs.
(22:21):
And quite often it's gettingpast those limiting beliefs,
dealing with those that are alsogoing to help your mindset and
the way you choose to moveforward, particularly when
things are a little tight.
And so, to overcome thoselimiting beliefs and to get your
mindset back in check, back onthe positive road, some of the
(22:45):
things that I would encourageyou to do are to get educated,
particularly when it comes tomoney.
There are lots of great courses, programs, books out there.
Obviously, I have a programwhich is business money magnet
12 month program.
I've got a brand new bookcoming out in June called Become
a Business Money Magnet andtied in with that I actually
(23:09):
have a day long learning in Junewhich is going to show you all
of the bits and pieces that youneed to become you know that
business money magnet to reallyunderstand your finances.
So they're just a few of thethings that I do.
There'll always be lots of them.
So if you need some education,go check out my website, but if
(23:30):
I'm not, your girl go and lookfor someone to help you get
educated specifically in themoney, who's going to help you
tackle some of those mindsetissues but, in addition, give
you the practical tools that youneed to improve your finances
so, when things do get tough,that you know exactly what to do
(23:51):
next.
The other thing that I would sayto you particularly you know
around this time where thingsare a little tough and those
limiting beliefs start to feedus is to really set a financial
goal and lean into that goal.
So many of us will go and setgoals for the next quarter, the
half year of the year, andthey'll all be around.
(24:14):
The stuff that we have to do inour business generally, the
offer that we have to create,the bums that we want to get on
seats.
None of them are usuallyspecifically tied to a dollar
number, but I really want you tothink about the financial goal.
So, whether it's a dollarnumber that you want to achieve
for your turnover, whether it'sa wage that you want to start to
(24:37):
pay yourself and the dollarnumber that is attached to that,
whether it is simply getting ahandle on the finances and
dedicating an hour or week totackling all of that business
money stuff, or it might befinding a new accountant or
bookkeeper, someone you can workwith on a regular basis who is
really going to help inform youwhen it comes to the business
(25:00):
money.
That's another way to help youovercome your limiting beliefs
and get positive around mindset.
Really important to ask for helpwhen it comes to money mindset,
overcoming limiting beliefs andyour accountant, bookkeeper or
a good money mentor are theplaces to start, and the other
one is to celebrate even thesmall stuff in your business.
(25:22):
I think so often we areconditioned to celebrating the
big stuff and even then,particularly here in Australia,
we don't really like to blow ourtrumpet too hard because people
don't like that generally.
But there's nothing stoppingyou celebrating your wins.
Even the small things Got uptoday, stayed positive.
(25:43):
Did the things on your to-dolist for your business, got the
kids fed and into bed at areasonable hour?
Check Worth celebrating that,worth taking half an hour to
watch your favorite TV program,worth having the tomorrow
morning off so that you can gofor a walk down in the beach or
(26:04):
do one of your favorite things?
Definitely worth celebrating.
Now, all of this talk on moneystories, money mindset,
overcoming limiting beliefs andhow it's important to do those
things right now, when thingsaren't flash in business, are
all leading me to this idea ofthe difference between value and
(26:27):
worth, and so many of us haveheard the saying.
So you know what are you worth?
Charge your worth.
What's an hour of your timeworth?
There's lots of sayings thattie back into our worth as
business owners, but I'm callingBS on the whole idea of worth
(26:49):
Because in my opinion, yourworth is simply what someone
else decides they're happy topay you, and that has absolutely
nothing to do with you.
And I'm going to say that onemore time your worth is what
someone else decides they arehappy or willing to pay you, and
that has nothing to do with you.
(27:10):
So if you're the person who'scharging dollars for hours, I'm
sure that you have had adiscovery call with someone or a
sales call with someone wherethey ask you so how much do you
charge per hour?
In other words, what is an hourof your time worth?
But I think we need to stoptalking about worth, stop
(27:32):
equating everything back to whatan hour of our time is worth,
and start to think about value.
So what is the value that youprovide to your clients?
What is the transformation thatyou can create, the problem
that you can solve, the time youcan save, the money that you
(27:55):
can save your client byproviding the services you
provide, the expertise you offer.
What's the value of that?
Your IP, so your intellectualproperty, that stuff that you
know, that you have collectedover many years in business and
life what's that you know?
What's the value of that?
It's that unique perspectivethat you bring to your business
(28:17):
and to the services you offer,the support you share, the
network you offer and the impactthat you make for your clients,
and so they are all the thingsthat go into the value that you
provide.
And it's time to start talkingabout value, what you can offer
(28:37):
in exchange for whatever itcosts you for the service, the
product, the offer that youprovide.
And for a lot of you who aretrading time for money, who are
still charging hourly rates, youmight be thinking well, how do
I do that?
How do I change that?
Because you know well, there'snothing wrong with an hourly
(28:59):
rate.
In my opinion, if you areoffering a service rather than a
physical product, I thinkcharging an hourly rate, trading
time for money, means a coupleof things.
You know you only have a finitenumber of hours in every week
that you're working, that youcan physically trade that time
(29:22):
for money.
There's only a finite number ofhours because you have to sleep
, you have to take care ofyourself, you've most likely got
family obligations and ifyou're running a business, not
all of your hours are going tobe billable.
There's all that admin stuffthat you need to do in the
background, and so, unless youare charging a really high
(29:43):
hourly rate and you are gettinga fantastic conversion because
you've got lots of clients whoare prepared to pay you at that
high hourly rate.
In all likelihood, you aregoing to have to really hustle
to earn the money that you wantto earn, to cover the cost of
doing business and to payyourself the wage that you want.
(30:03):
However, if you were to embracethe idea of value and to start
to charge for an outcome, thenagain, in my opinion, I think
the sky becomes the limit toyour earning capacity and what
your business can do.
So what do I mean by an outcome?
(30:25):
Well, as I said back in my toyshop days, the outcome was that
you know my customer would handover money and, in exchange, the
outcome would be this beautifulproduct that they had to give
to their kids or that they hadto give as a present.
The outcome that you offer arethe services that you provide.
So, for example, if I use a VAas an example, perhaps you hire
(30:49):
a VA to keep your social mediain check, or perhaps you hire a
social media specialist to dothat.
Essentially, the outcome thatyou're after is that you want
your social media finished, doneevery week.
You want things posted andscheduled.
You want someone to monitoryour engagement, potentially to
make a comment on your socialposts.
(31:12):
You want a strategy for yoursocial media.
The outcome is that you want apositive experience with social
media that you don't have toworry about, that you're
employing someone else to takethat off your hands, and so that
is the outcome.
If you are employing a VA tolook after all the admin stuff,
(31:33):
then the outcome might be a zeroinbox at the end of every week
and every email that has comeinto the business dealt with.
If you are working with me, forexample, the outcome would be
that you are looking to improveyour profit.
You're looking to understandhow to run a profitable business
and to make more money, and sowhen I help you to achieve that
(31:55):
is the outcome that you're afterThinking about outcome pricing.
What you're doing is you're nolonger trading dollars for hours
.
You're now trading an outcomefor a price, and so that means
that there will be no moresquabbling over hourly rates.
Gosh, how come it took you thatlong to deliver that particular
(32:19):
service thing?
It's just.
Here's the price.
I'm telling you the price upfront.
For this price, you get thisoutcome.
Here's the value that this isgoing to offer you and people
will either take that or theywon't.
It's pretty simple, right?
So you sell that before youeven start.
You sell the outcome, you sellthe price, and so at the end of
(32:41):
it, there's going to be nocomplaining about how many hours
you spent doing the thing thatyou have been engaged to do,
because you've delivered theoutcome.
If you don't deliver the outcome, well then sure, somebody can
scoople and complain over yourprice, but that's the difference
.
The other thing is, when youcharge for outcome, it's much
(33:05):
easier to increase your rateswhen you need to, because, no
matter what price you arecharging whether it's an hourly
rate or whether it's an outcomebased price your pricing has to
cover the cost of doing business, has to cover your wages, has
to cover your superannuation,has to cover your savings the
money that you need to pay fortax and those rainy day savings
(33:26):
and it has to cover a profit foryour business, that
unencumbered money, the moneythat's left over at the end that
you can do whatever you likewith.
So, no matter how you charge,you need to cover off those
things.
But if you get to a point inyour business where the hourly
rate needs to go up and let's goback to the VA as an example.
(33:48):
If you've been working with a VAwho's been consistently
charging $45 an hour and all ofa sudden they come to you and
they say, look, my rate's goingup to $65 or $75 an hour, what
I'm offering you is stillexactly the same, the work I'm
going to do for you is stillexactly the same, but now it's
worth $20 or $30 more an hour.
You're going to look at thatperson like they're insane
(34:09):
because CPI is not tracking thathigh.
Surely their experience hasn'timproved that much over the
course of 12 months.
Why am I paying you all thisextra?
A couple of dollars, yes, but$20, $30, wow, no way.
And so it's almost like a stopto you scaling your business, to
(34:30):
improving your business, toimproving your profitability, to
being able to give yourself awage increase, because you've
tied yourself in to an hourlyrate where you're trading time
for money and there's often noturning back from that, or when
you go to increase, it can justbe a marginal increase.
(34:50):
So if you are currently doingthat, if you are currently
focused on worth rather thanvalue, think about changing that
up.
And if you are currentlytrading dollars for hours, even
if that is in the you know, byway of a retainer or a package
of five hours or 10 hours ofyour time, then think about
(35:12):
changing that.
I know your next question isgoing to be well, how do I make
that change?
How do I go from trading timefor money dollars for hours to
outcome based pricing?
And it's actually simpler thanyou think.
First step is to sit down andhave a think about what your
offers are, what you aretypically offering people and
(35:32):
those people that you're workingwith on a regular basis,
especially when you're workingfor them for a regular five or
10 hours a week.
You can look at what you'redoing for them and say, ok, you
know, you're typically paying$450 a week for 10 hours of my
time and this is what I amdelivering for that.
And so you can come up withpackages a bronze, silver, gold
(35:56):
package that you can go back tothat client and say, look, I'm
moving to a package basedoffering or I'm moving to
outcome based pricing in mybusiness rather than trading
dollars for hours.
It's just going to make thingseasier on the back end with our
billing and time tracking andthat sort of stuff.
And so you know, when I look atyour business as it is now and
(36:20):
what I'm delivering for you inthat time frame, your rate is
going to be X and this is whatI'm going to be delivering for
you.
You can still charge a packageof $450 for that client, but one
would think that after you'veworked with them for a while,
after you have, you know, beenfocused on their work for a
while, that you would be able todeliver that 10 hours of work
(36:45):
in a more efficient way than youdid when you first started.
So, rather than packing moreand more into that 10 hours, if
you are simply delivering thesame sort of service that you
started, you know, with when youfirst began working with that
client, continue to deliver thatservice, continue to charge
$450 now, but realize that byputting together some more
(37:10):
efficient systems and processesand really implementing those
efficiencies, you can actuallydeliver that service in eight
hours.
And so now, instead of getting$45 an hour by delivering the
same service in eight hoursinstead of 10, you've actually
just given yourself a pay riseand you're now earning $56 an
(37:31):
hour, so an immediate $11 anhour increase.
So you can see how that canwork.
You can simply explain to yourclient that's what's happening.
If there is additional workthat that client wants you to do
for them, sure you can chargethat at an hourly rate, but you
can explain to them that you'veactually increased your prices
(37:51):
since you started working withthem.
Your new rate is $56 an hourand that you can do that extra
work for an hourly rate.
There's nothing wrong withhaving that hybrid.
But by moving more of yourbusiness to outcome based
pricing whether you're a VA,whether you're a coach, whether
you are a social media manager,whether you are a graphic
(38:12):
designer or a copywriter I thinkthat in the end, everybody is
happy.
You know, for a start, you getpaid, what you want to get paid
and in addition to that, I thinkthat the people who are working
with you know what to expectevery month.
They know what they're going topay, they know the outcome that
they will receive and they'rehappy.
(38:33):
You're happy, they're happy.
And if the workload increasesand you're finding that that
package no longer covers thatworkload, you can always move
them up or down a package.
So I want you to have a thinkabout that right now,
particularly as we are in thistime in business where things
(38:57):
are a little leaner than theyare.
They're leaner than theyprobably were 12 or 18 months
ago.
Start to think about how yourmoney story and your mindset and
those limiting beliefs areimpacting your business and how
those feed in to your sense ofvalue versus worth, how other
people perceive your worth.
(39:19):
Do you need to change that sothey're recognizing your value?
And do you need to change yourmessaging so that your value,
what you offer, the outcome, thetransformation, the problem
that you solve his front andcenter in your business?
And do you then, as a result ofall of that, need to start
(39:40):
thinking about the prices thatyou charge, so that people are
paying for your value instead ofpaying for your worth?
Because, as I said that yourworth is something that somebody
else decides that they're happyto pay you and that's got
nothing to do with you.
(40:01):
So I would love to hear yourthoughts on your money story,
money mindset, how you overcomethose limiting beliefs, and
whether or not you have decidedto embrace value based or
outcome based pricing and ifthat is making a difference in
your business.
So, until next time, keepliving your definition of
(40:26):
success.
Speaker 1 (40:26):
Thanks for listening to the secrets of successful
business podcast.
For more information on allthings business, head to
flossycomau and make sure youhit subscribe on the show so you
don't miss another new episode.
If you're enjoying the show,please give it a quick rating or
review, share it on yoursocials or with friends who
might enjoy it.
(40:46):
Catch you next time.
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