Friday, July 12, 2013

The Most Important Financial Rule in Business

I get tons of questions about business and finance on a daily basis. While you can ask me about finance and your specific circumstances on July 24th at my free webinar, to register, I'm offering some basic advice below.

The most important fiance rule in business, and my advice to all those going into business for the first time, is to know your price point. Don't look at your competition and devalue yourself by charging less. Instead think about what sets you apart and then charge more for your services based on the unique skills, services and products you have to offer.

You're going to lose clients when you raise prices. This is a given. But, you don't want clients who aren't willing to pay you what you're worth. If someone is looking for cheap, let them go somewhere else and get cheap. After all, you do get what you pay for. The easiest way to make a profit, and grow your business, is to charge more than your competitor and target the big fish- not spend time fishing for a thousand minnows.

If you have some success but you're not cutting it budget wise you also need to take a second look at what and how you're charging customers. If you're not making a profit, but you have lots of interest, raise the bar a little. Change your rates, cater to clients who can pay, and drop the clients who are unwilling to pay or those who pay less than what you're worth.

Until next time,

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