What money myths are you running your business by? Your views and beliefs about money can really help propel your business forward or hold it back. I hear it all the time with clients, certain money myths that are said over and over again. But it’s often coupled with a desire to grow the business and reach bigger financial goals. However, if you don’t pick up on those money myths you’re telling yourself, you will not reach the goals you set. So how can you change that?
It starts with picking up on those myths you’re telling yourself and busting them! So here are five of the most common ones that are constantly shared with me - along with simple ways to move past them.
Budgeting is so important, and that’s a word that can scare many. But you don’t have to call it budgeting - you might just call it planning instead. That helps you get past the initial wording. And actually, you might have enough money in the bank at the moment. But you need to make sure you've planned for what happens next. Say you hit the VAT threshold or are taken ill. What if a family member is taken ill? The recession could hit you or your clients and you suddenly lose a big client - what happens then?
There are lots of people who think budgets are boring. So think of it as having a plan and knowing what you would do in certain circumstances. It's amazing how quickly money can change, even if you think you've got enough. You only need a couple of drier months and things can change quickly. You need to have something in place where you're sure you can cover the core costs you need covered. That might be a mortgage or an office space, for example, but it means covering both your business and personal costs, as well as any tax obligations you may have coming up.
It may be your partner, mother, manager or accountant, but it doesn’t mean you don’t have to know about them or manage them! Look at the glamour model Katie Price, aka Jordan. She basically gave it all over to someone else. She gave away her money power to someone else and said she didn’t need to know as she trusted them to deal with it. A couple of years ago, she was declared bankrupt.
It’s not okay for you to hand over your money power to someone else. If you run the company, you are responsible if something happens, so it's really important you understand what your financial position is - both personally and professionally.
This is the same at home too. If you don't know how much your partner earns or how much the mortgage is, find out! Make sure you know all those things and what your business looks like, and what's driving it and what activities make you money. Get into the habit of asking questions. If you don’t understand how it’s explained to you, ask until you do or get somebody independent to explain it so you can understand. It’s no good if you’ve got investments and don’t understand what they’re all about.
This is really common. You don't need to be good at either of these things - but you can learn! Being rubbish with money is not something you have to stick with for the rest of your life. I always recommend you read Denise Duffield Thomas's ‘Get Rich Lucky Bitch’ book. It’s brilliant for busting money mindset issues..
And I think it's really important that you think about what is the actual cause of you being rubbish with money. Is it you've always had a lot or you've never had enough? What causes it, because it’s often something you’ve learnt from childhood. Honestly, we all make mistakes when we do stuff. That includes investing in something you can’t get out of or something that wasn’t worth the investment, but you can educate yourself and get on top of it.
But it's being much more deliberate and conscious about stuff like that. You don't need to be good at maths to be good with money and it's never too late to change.
At the moment, there are many people saying this one and it tends to become a bit of a reflex response. And I think it also cuts both ways - if you’re saying you can’t afford it are you making good decisions in your business? Or are you limiting yourself to only doing certain things?
I've got a podcast episode coming up, which is all about how to ensure you're getting return on investment from the things you put your money into. But be really clear about whether it's the right time for you, whether you've got the time and the energy, and that it can give you the results you want. Because sometimes battening down the hatches is a good thing. But we all buy courses we never look at. We all invest in things that don't get the results we want. So be deliberate and really think about how you're going to make that money back, how you're going to pay for it. Money on a credit card is never an ideal situation.
And of course, if people say they can’t afford whatever it is you’re selling, always have something else you can offer them. Say ‘Thank you very much’ and point them to your smaller package or even your freebie. And don’t be afraid to recommend someone else they can work with that’s cheaper.
Because if people can't afford you, that is on them, not on you. Remember that if it's happening a lot, you want to be communicating much more about value. But if people can't afford it, just say ‘Thank you very much and come back when you can’.
And then last, we're going to talk about ‘I can't charge that’. We’ve all experienced this one! So this is imposter syndrome stuff, believing you can't charge that much for that thing. But remember the old adage, which is they are not paying for the two hours of your time - they're paying for your 25 years' experience.
You need to really think about whether you’re charging your prices because that's what it’s worth or how much it cost you to create. And know that as you grow, you can just put that price up all the time. Start low and then, after five clients, put it up. Then after another five, do the same, and another five. You should always put your prices up until you feel slightly stressed, but not sick. Because actually, if you're going to be sick, you're never going to sell it! So it needs to be a price you can sell at, but it's also pushing the boundaries so you keep putting your prices up. And your prices need to go up regularly. A good price increase is the cost of inflation - which is a lot at the moment.
So there you go, the most common money myths and how to overcome them. And if you want to know more about how to work with me and the services or masterclasses I have, head over to my Work With Me page - you’ll find it here. You can work with me at many levels, with prices from £27 upwards.