As a small business entrepreneur I understand only too well what ego can cost in business. It’s almost as though there is this club of conversation that talk about business as though it is a social club. For many of the individuals I know in 3D real life, the talk isn’t light, if their business fails their house may go away. If they don’t make money this month their electricity will go off. Not knowing how to do something is a problem, knowing how to do something but not knowing how to price, market, or have repeat business is destructive to their lives.
What is ego? It’s the level of self awareness that keeps one from learning. A person who has a large ego has a need to be right, to be in charge, and often they are not teachable. (my most concerning trait when a new business client comes for help) You see, if your business or project is not working there is a reason. Learning and correcting the behaviors that are causing it not to work matter.
Recently there has been a virus like rash of over pricing among service providers online. Specifically I’ve worked with two types of service providers who are struggling to achieve the level of income their skills and talents can provide for their business. As we went through the paces of skills, packages, and hourly fees charged I kept hearing “I’m worth $$-$$$ per hour.” as the testimony of the pricing. Personally I think the person is worth $$$$$$$$ more than that, but the skill set he is providing isn’t. If the area you are in is offering a skill set that is professionally trained, works within a timeline the customer sets, produces effective, efficient work delivered on time for $18 an hour, its going to be VERY difficult for you as a solopreneur or virtual assistant to charge $55 to $75 per hour for that same skill set.
Ego often leads to ignorant alignments of outcomes.
One such client recently told me he would not work for less than $80 per hour. His skills were professionally average, his background and experience not exceptional, his personal habits professionally were not terribly polished. He didn’t offer extensive extras or specific niche talents. He also couldn’t pay his mortgage.
The kicker?
He turned down $35 per hour work consistently. That same week, had he worked $35.00 per 20 hours, the $700.00 he made that week would have paid all of his base bills and the following week he could have paid his mortgage and had money left ofter, by week 4 he’d be able to meet his less than $1700 a month need.
Ego is expensive, in the current state of the union, he was willing to lose his home, his vehicle, and his relationships with family because he felt by accepting less than $80 an hour he was “not worthwhile.” Worthwhile in my book has a good more to deal with being a person of integrity than how much you charge for services. There is nothing in the world wrong with making a living at the rate your skills are paid in your area. If you don’t like the rate skills you own are being re-numerated, learn more advance skills or offer more personally responsible tasks in the offering.
Example: I often work as a ghost writer. While my writing might make $.50 to $2.50 per word when I write for a publication as myself, when I write as one of the on-going authorities I ghost write for, my words become theirs permanently, my writing is tested to make sure it is not accidentally plagiarizing phrases, and phrases I create may be considered intellectual property phrases that are trademarked to the author I write with or for. Those differences make my ghost writing worth $4-14 per word or a fee plus percentage of profits from the materials created with those words. It is my choice to have developed those opportunities when I sought to make more money from writing.
Other ways to up your anty is to offer specialty supports: work hours when others don’t, be willing to take “on call” situations, be willing to provide for your businesses a service that no one else enjoys doing or remembers to do, protect their businesses by knowing what hurts them. Be willing to go in at a lower price to give a client a truthful taste of what you are capable of doing professionally. Your ability to work with their team matters. Your ability to keep deadlines and communicate goals as you go matter. Your ability to be a person of your word matters. Your ability to offer flexibility to other small businesses to meet their needs seasonally or to go up and down in offerings as their need for outside assistance is required matters. During tax season, a CPA may need 24/7 website supervision and support and daily updates, however in August twice a month check ins may be enough. Learn what your clients need or desire from you. Ask the client, “how can I serve you best?” and listen! Too often I hear the question asked but then the person is so busy talking the client doesn’t get a chance to answer.
If your goal as an entrepreneur is to create client relationships for the serves or products you offer, take time to shelf your ego and do the work of finding out what your skill set is worth in your area, online, and how much it is charged for on places such as O Desk. Find out the advantages and disadvantages of each. Craft your offers and price points to support a price that will not only be able to be supported when clients shop around, but once they experience your truthful taste of your services, you’ll be the entrepreneur of choice!
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