Lockdown has created both issues and opportunities for many. I’ve recently been speaking to Fleur Emery about how she pivoted her business during lockdown. Fleur is the founder of Real Work, the online co-working space for women - an online coworking community I’ve been a member of for the last 4 months or so. I love how she runs it, and her energy is really impressive, so we’ve been talking on my recent podcast about how she got started and how she decided on her pricing structure for Real Work.
Lockdown happened, and I was at home with a five-year-old. All my work was suddenly cancelled overnight. The runway of income I had lined up was wiped off the table. I was sat at home with no income runway and a kid. This idea that had been fizzing around in my head become an ‘OK let’s do this’ moment.
I come from a background in industry and have 15 years of experience in starting food and drinks companies of my own....
Passive income is something that many business owners aspire to have. The idea of earning money whilst not doing any extra work is incredibly appealing. The term ‘passive’ suggests that you could be sitting on a beach and permanently not doing anything to generate that income.
But passive income isn’t entirely passive. It’s true that once you create the content, you might not have to do anything to recreate that content, but you do still have to market and promote it.
A book is a classic example. You can spend a year to write a book, but then once it’s written, you can sell it over and over again, with no extra work. However, it takes you a year before you make any money, and you still have to promote it - because people can only buy things if you promote them!
Passive income products are generally lower cost. Things like an ebook for £10 or a prerecorded workshop that you initially...
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.
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...
If you’re new to freelancing, it can be a little overwhelming and confusing. There’s so much to think about and so much to set up. You need to ensure you’re doing the right things and not wasting your time and money on the wrong things. You also need to ensure you’re starting as you mean to go on, especially when it comes to business and pricing.
Recently I was chatting with Emma Cossey over on my podcast. She’s the go-to resource for everything when you’re new to freelancing. Emma’s passionate about taking away the fear around being a freelancer and ensuring you have everything you need to build a business that suits you and your personality.
Two essentials often get overlooked by new freelancers - terms and conditions and business boundaries. Terms and conditions don’t need to be full of legal language. They can be a list of boundaries and expectations between you and a client, simply...
There are loads of pricing myths out there in the online world. From pricing low when starting out right through to only being able to price per hour, these myths only serve to keep you stuck at a money ceiling of your own making.
So let’s bust 5 of the most popular pricing myths coaches and consultants, in particular, come up against.
Prices change all the time, and it’s never a just once done kind of thing. After my recent podcast chat with Osmaan Sharif, I started putting my prices up after every 5 clients. When it comes down to it, pricing really is just trial and error.
The only way you know if something is the right price is a) if it earns enough for you, and b) whether somebody’s prepared to pay for it! If it’s perceived to be too expensive or not provide enough value, people won’t buy it.
You must think about where your products and services fit in your process and how you...
Selling to Corporates is something many shy away from. There’s a worry it’s complex or challenging to sell to Corporates - and in many ways, that’s true. But it’s also a significant way for you to grow and scale your business. Corporates tend to be more expensive, and you can charge more.
I’ve recently been talking with Jessica Lorimer over on my podcast. Jessica specialises in helping entrepreneurs sell into Corporates and can help you see how adding selling to Corporates can become a revenue stream for your business.
A Corporate is an organisation that has multiple permanent employees on its books. They work to provide their end-users and customers with a specific service, product or experience. They aren’t defined by how much they earn. A solo entrepreneur can sometimes earn more than a Corporate! It’s the staff component that makes the difference between a solo entrepreneur and a Corporate.
Correctly knowing how to price services and packages is something many business owners struggle with. Often, pricing by the hour is the default option for service-based industries and new businesses. But if you want to have financial freedom, this needs to change - and fast!
There are so many reasons why pricing by the hour isn’t a good option for you. Primarily, you’re tying yourself into the time for money trap. You’re limiting your earning potential by the number of hours and days you can work.
But also, pricing by the hour punishes efficiency. As you get better at something, you get faster. The faster you get, the quicker you can deliver things - and if you’re charging by the hour, the less you’ll earn. Someone else can produce a lower standard of work over a longer period of time and get paid more!
You’re the CEO of...
Hourly billing isn’t a good pricing option and it’s something that Jonathan Stark, former software developer and author of ‘Billing is Nuts’, is on a mission to rid the world off. The problem with hourly billing is you’re always putting an artificial ceiling on your income. You’re limiting yourself, based on the hours and days you can work, along with the traditional standard hourly rates associated with your industry. It’s why value-based pricing is so much more effective for you and your clients.
It often allows you to get started, long before you really know what your client wants. But it’s also not designed to build trust either. If a task takes longer than your client thinks it should, they question your efficiency and wonder if you’re padding out the hours.
The hourly billing model also penalises you for being good at what you do. The slower you work, the more...
Do you price by the hour? Or do you price based on your hourly rate?
Pricing by the hour really undermines how efficient you are and how quickly you can get a result. If you can get the same result in less time, why should you be paid less for it?
You have to work out what the value is to the client of your work. For example, if you are in HR, can you deal with employee disputes quickly and efficiently with minimum stress on each side? That's worth a lot of money to a client.
Are you saving someone time, money, or providing peace of mind? An accountant might save all three, but the main pain is making sure you are paying the right tax and not missing anything.
Think about the problem you solve and what results you get for the client. Why should they hire you and not someone else?
Ask clients different questions when you talk to them. Not about what they want doing but about why they need it - why now? Why you? What are they looking to get?
This is tricky to start with but with...
Black Friday sales have been around since the 1960s. But it wasn’t until Amazon bought it to the UK in 2010, that it really took off. Although Black Friday (and Cyber Monday) sales do lead to an upsurge in sales, many online business owners are asking if they should run Black Friday discounts too.
Because a lot of smaller businesses tend to only take part in Black Friday, through a fear of missing out.
And personally, I don’t think you should run Black Friday discounts.
As a business owner, you’re not going to lose out on anything, by not having a Black Friday discount. And let’s face it, there’s no need to discount for the sake of it.
Black Friday discounts can work if you have something specific to promote. Your customers are primed to go shopping during Black Friday, and many will hold off until this day, to ensure they get the best deal.
And this is good news for you if you want to...