Podcast Episode 23 - Taxes and pricing

growth pricing tax Aug 18, 2021
 

The idea of taxes shouldn’t stop you from putting up your prices. And neither should it keep you from growing your business. I’m a firm believer that you shouldn’t let tax or accounting dictate how you run your business. You should consider it, but it shouldn’t be the main driver behind how you run your business. 

You shouldn’t be playing small by keeping yourself under the VAT limit. In the UK, the VAT limit is £85,000, and once you get to that level, you have to charge VAT on all your sales. It does mean you can claim back some VAT, but it often means in a service-based business that you will also be paying VAT. 

Be prepared for taxes and VAT

Many people don’t want to be VAT registered as it’s seen as a bit of a pain. That’s not a reason not to do it! You shouldn’t be limiting your business growth to that £85,000 threshold and having to put 20% on everything. You should be preparing for it once you get to...

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Podcast Episode 18 - Using PR to raise your profile and your prices

 

Raising your profile is something all business owners want to do. Gaining exposure and media coverage can make a real difference to other people's perceptions of you and how in-demand you are. And I know I’ve personally found that when you put yourself out there, people start approaching you about things, and you can then command a different level of pricing.

Recently, I was chatting with publicity expert Rachel Spencer about raising your profile to help you raise your prices. So if you’re wondering how you can use PR to raise your profile and your prices, read on!

You need to get yourself out there to grow your business

No matter what type of business you have, you need to think about raising your profile and gaining exposure. But when you put yourself out there, you can feel quite vulnerable, especially when you’re putting yourself out there as an expert. It can feel quite scary telling people what you do, as it’s all about you and your personal brand....

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Podcast Episode 17 - 5 pricing strategies

 

When it comes to pricing strategies, there are so many options to choose from. But as with many things, it isn’t always down to the number of choices available to you - it’s more about picking the right one for you. That’s why it’s so crucial that you think about your business and opt for the strategies that work for you, especially when it comes to pricing. 

So how can you make it easier for yourself so you’re not bumbling around trying to find pricing for your clients? You can use so many different ones, but instead of overwhelming you, I’m just going to cover the five main ones in this blog.

Pricing strategies based on an hourly or daily rate

Lots of freelancers and consultants use this. But if you’ve spent any time following me, you’ll know I’m not a big fan of this style of pricing. You should not be pricing by the hour as it punishes efficiency and always puts a ceiling on what you earn.

It is, however, often a good...

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What is a power hour and why should you have one?

I think all service businesses (and some product ones too!) should have a power hour as part of their portfolio. It's a chance for people to work with you at relatively low cost, and you can get a result in an hour for the client.

It also deters time wasters who just want something for free.

What is a power hour?

A power hour is an hour of your time where you solve a specific problem for that client. So for me, it is pricing a specific thing, or increasing your profit in a certain area. I can't solve all of your pricing problems in an hour, so it's best to pick a topic and be really clear about what you can (and can't) cover in an hour.

Why do I need a power hour?

Do you often get people "tyre kicking" or saying "can I pick your brains about....."? It can be hard to say no, but you can end up spending a lot of time for free and giving away lots of your hard won experience by doing this. And people will push your boundaries all over the place if you let them!

Is it difficult to set...

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Do you have good boundaries?

Growing your business into a six or seven-figure business is something that takes discipline, focus and boundaries. The problem is COVID came along and changed our working habits, our routines and our focus! So do you still have good boundaries in place, or is it something you need to work on a little more?

Those good boundaries have become a little blurred!

COVID has really blurred the boundaries between work and home for many of us. It’s something that many initially saw as a short-term problem, but the reality has been quite different. For parents, in particular, childcare plans have changed or been interrupted, as you are now seen as being ‘at home’. This means you’re often seen as available and able to juggle work and home life.

Working from home often means it’s tempting to be always in work mode. The boundary between your working hours and downtime has also blurred, further compounded by the changing environment and working patterns of others.

...

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Do you want to earn more in 2021?

What are your financial goals for 2021? Do you want to earn more money? I know, for many that seems a bit of a silly question - after all, who doesn’t want to earn more! 

No matter what type of business you have, the easiest way for you to earn more money is to put up your prices. But for that to happen successfully, you need to have a plan. And that’s something that will take time.

Your prices are only part of the equation

It’s relatively easy to take what you already have and simply increase the price. But what if you haven’t set up your package correctly in the first place? What if you realise clients want something that isn’t in that package? And what if you were already underpricing or overpricing - what then?

If you want to earn more in 2021, you need to ensure that your foundations are correct first. You need to understand how to price in a way that includes your financial goals, your business costs and your desired profit margins. You need...

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Moving your business beyond the kitchen table

How did your business start? Did you have kids and create something to fit around them?  Maybe it was something that you started, to get in a little bit of pocket money, or a hobby that turned into your main business? But now it’s up and running - are you still treating your business like a hobby? Because if you are, you’re not doing it (or you) any favours.

It’s not just about the kitchen table

The problem with working from the kitchen table is it doesn’t feel especially business-like. Often, it’s the place you need to keep clearing away so others can eat, work or study. Your family will often congregate around it and it never actually feels like anything other than the workhorse of the kitchen. 

It’s also in the busiest room in the house! So if you’re looking for space to focus, think and get serious about your business, it’s not really conducive to that.

Because when you work from a kitchen table, it isn’t just about...

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5 reasons to be a limited company

Should I be a limited company?  I get asked this a lot, and the answer is it depends on your business and personal setup.
 
But in general, it is because of 5 key things:
 
1.      Liability insurance
2.      Employing people
3.      Business partner
4.      Tax & control of income
5.      You want to be seen as a bigger business than you are.
 
Liability
 
Liability is a critical one. If you have insurance of any kind and you are a sole trader, if the insurance is inadequate, you are liable for your personal assets (house, car etc). So make sure you have adequate insurance cover especially if you are a sole trader.  It’s the main reason I am a limited company, to protect me professionally.
 
Payroll
 
If you are employing people a limited company gives you a legal framework to work...
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6 Figure Myth

In this week's blog, I want to talk about all the stuff I see online about "6 figure businesses". I think it can make small business owners feel that they are not getting it right if they are not doing this.
 
Don't get me wrong, I'm sure they are making 6 figures in their business but this is only talking about the sales they make. This isn't to be dismissed, but the bit they don't tell you is how much their business is costing to run and how much money they are taking out of the business for themselves. It may even cost them 6 figures to run their business!
 
It's expensive to run a 6 figure business, often with employees and freelancers working for the business, plus all the costs of various events they run and the software that is used.
 
I think it can be aspirational to hear about people doing well in their business, but it can also leave you feeling inadequate, especially if your business is just you.
 
Don't feel bad if you are not making 6 figures, focus...
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Financial Goal Setting

goals growth income May 06, 2020
Do you set goals? Any goals will do, but do you set them?
 
I set mine monthly at the moment, with everything going on, but usually every 90 days. I write one revenue goal, one systems or process goal, one launch goal and one social media/email list goal. That's it. I don't write 50 goals as I can't achieve them, plus it keeps me focussed. I put them on my computer lock screen so I am reminded of them every morning when I log in.
 
It is so important to set goals in your business. Time easily slips away and you find you are no further forward than you were 6 months ago. But making sure they are things you are going to work on and can aim for are critical.
 
When you set a revenue goal, do you just pluck a number out of the air, or take last month's number, or do you look at how that number will be made up? How much time will you be working over the period, what work are you going to do? Breaking down your goals into manageable steps is key to making sure you will...
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