Are you tired of never having anything left over once you’ve paid your bills? There’s a huge difference between making money and actually turning a profit in your business.
It feels good to run your own business, and it’s a huge achievement, but as you grow it’s important to remember that you are allowed to begin charging more for your products.
If you have to work many long hours, or take on a large amount of clients, just to cover your costs, you’re going to become exhausted. Most importantly, you’re going to stop liking what you do.
Previously, when I was running my fitness business, I thought I was making good money. However, I was running myself into the ground. Though I began to become aware that I needed to raise my prices, I didn’t think I could. I was suffering from imposter syndrome and too attached to the price I started out with
Every month, I was ‘making money’ — but it all got spent.
In episode 142 of The FastForwardAmy show, I share with you the advice that I would give myself at that time if I could go back.
Knowing what I’m worth, and what my energy is worth, means I’m at a point in my career where I now have a lot of freedom in what I can charge for my coaching services. I want the same freedom for you, so I’ve written this article which shares some of the tips I discuss in this week’s episode.
1. Know How To Calculate Your Hourly Rate
I previously managed hourly rates for myself for a long time, but I wasn’t getting it right at first. Originally, making 30 euros seemed amazing compared to nothing. Then, I started investing in a studio space, in learning, my client base was growing, and my costs were going up.
I was still pretending my time was worth 30 euros, but it wasn’t like that anymore.
Learning how to calculate an hourly rate that reflects what your time is worth will set you free.
You should calculate your hourly rate based on your costs. That being said, it’s important to know what your time is worth beyond covering costs and in order to hit your targets. To help you do this, you can use my free How to Calculate Your Hourly Rate guide and listen to Episode 5 of The FastForwardAmy Show where I provide guidance on calculating your rates.
2. Make Sure What You’re Offering Can Get You To Your Goals
Just because you’re making money, doesn’t mean you’re moving towards your goal.
Previously, I wasn’t really being profitable, but I thought I was because I was making a lot of money. That was only because I had previously been making no money.
When I sat down and looked at my product, my goals, and what I was charging, I realized that to reach my goals I would have had to work 11 hours a day every day of the month. That’s not realistic. There is no use in running a business that is making money but makes you unhappy.
The main thing you need for a profitable business is a core offer that gets you to your revenue goal. If you need too many different things to hit your revenue goal, then you’re going to be focusing on too many things at once — this is the opposite of focus. So, you’ll never hit your revenue goal.
If you’re making money, but feel like you’re never moving forward or never have a profit leftover, that’s where the gap is — between the price point, the core product you offer, and where you want to go.
The ‘Keep It Stupid Simple’ (KISS) principle reminds us to keep our product simple and straightforward — know what you offer, communicate that clearly, and charge what you’re worth!
3. Understand Your Price Represents An Energy Transaction
In episode 138, I shared 4 Easy Habits That Helped Me Get Rid Of A Bad Money Mindset. In that episode, I discussed how money is just another form of energy. When you work too hard but don’t make much or enough money, your energy will be imbalanced.
The only way to overcome this is to reclaim control over your hourly rates (and your energy!) by increasing them. Now, your time is worth more and you can work a little less, restoring your energy and once again feeling good about what you do.
It’s not always easy to raise your prices, and you have to make sure that you match the price with a great product. If you’re not sure where to start, you can listen to Episode 91 of The FastForwardAmy Show where I offer some guidance on communicating a price raise to your clients.
The main thing to remember is that you are always allowed to make changes to get you to where you need to be — you don’t have to stick to what you said or any choice you made for the rest of your life.
Be happy, make good money. If you can’t take care of yourself, you can’t take care of other people, and you can’t take care of your business — you have to make sure that energy is always in balance.
To help you make this happen, I’m hosting a training called Becoming A Profit Pro (in Dutch), which is designed to help you begin creating more financial independence and freedom no matter where you are in your career, business or life.
This training is part of the FREE Business School I’m hosting this summer! For 2 months, my team and I help you become more financially abundant and live the life you’ve always dreamed of. Follow the link fastforwardamy.com/bus to register!
To sum everything up, I’ve listed the 3 tips from this article below so you can easily remember them as you spend some time thinking about how to get more value from your earnings. To find out more tips and lessons about becoming a Profit Pro, listen to the rest of the episode here.
Tip 1: Know How To Calculate Your Hourly Rate
Tip 2: Make Sure What You’re Offering Can Get You To Your Goals
Tip 3: Understand Your Price Represents An Energy Transaction
PS: If you want to work with me but aren’t sure where to begin, head to fastforwardamy.com/findyourfit and answer the questions — we’ll point you in the right direction!