The SmallBizLady Buzz - Issue 214

Are you battling a worthiness wound?

Pricing is one of the biggest challenges that small businesses face, especially those in consulting. For years, people have said to charge what you are worth, but is that really a good idea? Your confidence might make you think that you are on the clearance rack.

The term "worthiness wound" refers to a psychological phenomenon in which individuals harbor deep-seated feelings of inadequacy, often stemming from past experiences, societal expectations, or personal beliefs. This emotional wound often affects one’s self-esteem.

Addressing worthiness wounds requires introspection, self-awareness, and often therapy. It involves challenging negative beliefs, practicing self-love, and reframing perceptions of self-worth. By recognizing and healing these wounds, you can cultivate a greater sense of confidence, assertiveness, and value in your professional services. This, in turn, empowers you to set fair and sustainable prices for your services, ultimately contributing to your success and fulfillment.

For small business consultants, pricing decisions can feel like navigating a minefield. On one hand, there's the fear of undervaluing oneself. Conversely, setting prices too high risks pricing oneself out of the market. Striking the right balance becomes crucial.

Confidence plays a significant role in this decision. Many business owners struggle with imposter syndrome, doubting their worth and expertise. This internal battle can lead to undercharging as a form of self-sabotage. However, confidence, when backed by a realistic assessment of market demand, industry standards, and the unique value proposition offered, can help justify prices and enhance the perception of value.

One key consideration is the distinction between cost-based pricing and value-based pricing. Cost-based pricing involves setting prices based on production costs and desired profit margins. On the other hand, value-based pricing hinges on the benefits and outcomes delivered to clients. This approach aligns pricing with the value received, thus justifying higher rates.

Reminding your clients about the value of the outcome is key to justifying your pricing model. You are solving a problem for them and communicating that can alleviate concerns about overpaying for services. This will also help clients perceive the value of what they're paying for.

Pricing isn't static; it's an ongoing process that requires adaptation. Market conditions change, client needs evolve, and competitors adjust their strategies. You must regularly reassess your pricing strategy and adopt a flexible approach to remain competitive and relevant.

This week’s featured post: Pros and Cons of Hiring Family Members in Your Small Business

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Pros and Cons of Hiring Family Members in Your Small Business

It can be tricky to hire family members in your small business. It can be both rewarding and challenging. Hiring family members can bring a sense of trust, loyalty, and shared vision to your business, fostering a tight-knit team environment. However, it also comes with its own set of potential pitfalls. In this article, we’ll explore the pros and cons of hiring family members in a small business, shedding light on the benefits and drawbacks of intertwining familial ties with your business operations. Continue reading....

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The SmallBizChat Podcast: How to Fund Your Business From Investors with Lisha Bell

Checkout my recent podcast: How to Fund Your Business From Investors with Lisha Bell

Lisha Bell is Co-Founder of BLXVC, an angel syndicate of moms funding Black and Brown founders. She is the host of the Sisters with Ventures Podcast, which aims to tell the stories of women in venture capital. Bell is also the prior deal flow lead for Pipeline Angels, an angel group of impact investors focused on women and femmes to build over 7M portfolio. Lisha also serves as board chair for Black Girl Ventures. In her day job, she is an Economic Opportunity Manager at PayPal. For more information, lishabell.com

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Melinda F. Emerson, “SmallBizLady” is America’s?#1?Small Business Expert. She?is an internationally renowned keynote speaker on small business development, marketing and social selling. Melinda is also the president of the Quintessence Group, an award-winning marketing consulting firm based in Philadelphia, PA, serving Fortune 500 brands who target small business market. LinkedIn named her a Top Voice for 2019 in Small Business and Entrepreneurship.?In addition to being a former NY Times columnist, she is frequently quoted by media organizations including The Wall Street Journal, Fortune, MSNBC, CNBC and Fox News. She is the host of #Smallbizchat LIVE and The SmallBizChat Podcast. A prolific writer, Melinda has published more than 5000 articles on her blog www.succeedasyourownboss.com . Her small business advice is widely read reaching more than 3 million entrepreneurs each week online. She is the bestselling author of Become Your Own Boss in 12 Months, Revised and Expanded and Fix Your Business, a 90 Day Plan to Get Back Your Life and Reduce Chaos in Your Business.