You should know and if you don't, let's dig into it starting NOW! Why should you care? If you don't know what your worth, you'll make bad decisions on how to spend your time and your money. You'll spend time taking work that won't pay you well, you'll spend your precious time working on chores in your business not worth it. You may even be pricing your services or products waaaay too low! First, let's get straight on what your worth is not...
- The salary at your last corporate gig
- The price of the last job you did
- What someone said they would pay you (this is only somewhat true depending on who said it!)
How can you find your worth? Here's what you need to know so you can start collecting or double checking your numbers...
- What is the minimum amount to pay your monthly bills?You especially need to know this number if your business is your ONLY job or a SIDE business. The bills number is your 'floor' and you can't go lower than this number.
P.S. Bills do not include your morning latte at the 'Buck', your hockey tickets or your sweet new boots. If your 'floor' number scares you, then it's time to make some lifestyle changes especially if you want to grow your business!
- If you had a regular 'o corporate type job title what would it be?Don't worry, there are is good to come out of corporate without actually being employed by them. Instead of 'Queen Bee' or 'Head Honcho' are you a graphic designer, sales trainer, executive assistant, motivational speaker? If you are lifestyle coach think human resources or management consultant. You might have to hunt around, but find a couple titles that fit good enough. They don't need to be perfect and you don't have actually like the title.
P.S. Hunt around for job titles on job boards, corporate career pages or sites like glassdoor.com
- How common is your service? Are you the one and only, or might there be a few others in your field? It is not a bad thing to have other business providing services in your area of expertise. This is good news! Why? Because it confirms people are willing to buy. It's sooo much harder when your business has to convince people they need something that is so new, they don't even know it exists.
- Who is your ideal client, or market for clients?Is it the corporate honchos, the solopreneurs, Non-profit organizations or somewhere in between. Understand what your clients are buying and who they might be buying from. This might be especially tough for solopreneurs and small businesses, but look for testimonials, then get a good look at the business they bought from, what it does, their price points. Check in with your Facebook groups, or your local networking meetups. Take a look at LinkedIn and see who their 'friends' are and if they've posted any recommendations. Yes, this takes a big of digging, but you'll find some great nuggets.
- Do you have any overhead?Overhead is the expenses you have pay even if you have ZERO clients. Things like an office space, a monthly VA, a bookkeeper, internet connection etc.
- You do have a 'secret sauce', right?This is why people come to you and not the others. This is that super 'gray' area that means the most! Write down your secret sauce, why people come to you or should come to you and makes you a hidden gem!
Go ahead and spend time collecting this information or double-checking you have a current update. I'll be back with Part 2 on how to use all this juicy data to know what you're worth! Once you know what you’re worth, business growth decisions will be a lot easier than ONLY using your best 'hunch'