Underearning: The Hidden Business Barrier You Probably Haven't Heard Of

As an entrepreneur, you’re wired for boldness, innovation, and impact. You’ve launched your business with a vision to create freedom, wealth, and a legacy. But what happens when, despite your best efforts, your income doesn’t reflect your potential? What if you’re stuck in a cycle of earning less than you deserve, unable to break through to the prosperity you know you’re capable of - despite the fact that you're working countless and even your thoughts are typically consumed with your business?

You might be grappling with a condition known as "underearning"—and it’s more common among entrepreneurs than you might think. And ironically - money's not the problem - think of the "money" (or lack thereof) as a measure of the degree to which "underearning" behaviors are impacting your life. Underearning is often a trauma-shaped identity one adopts - one whose mindset, habits, and subconscious barriers are designed to keep you from fully stepping into your power...a defense mechanism that doesn't serve you - as it assumes the false belief that you're not worthy, that maybe you wanting more is a family betrayal, and/or one of many other psychological influences - so it seeks to protect your from the consequences of doing what would make you successful as if you would fail in the process. I know this struggle intimately because it’s something I had to face personally. Yes, My name is Michael, and I am an Underearner. Like anything else - none of us know what battles are being fought behind the eyes of others. Now, many readers may see this and say "Wow Mike...Not exactly the best business card for someone whose business it is to help others build, grow, and exit theirs," to which I'll simply say that, regardless of this new piece of data you may know about me - it doesn't change the value and impact my mission and services have had for the small business community...it simply uncovers the fact that I had a very skewed view of my self worth and how that affected how I priced and charged for my work. There are countless business owners for whom my journey gives me the perfect insight, perspective, and empathy to serve them in a way that other advisors are not equipped to. For years, I've been working with business owners and their advisors to achieve exits that leave them personally fulfilled, financially secure, and able to achieve the impact and legacy that they desire. For the larger businesses, it's incredibly rewarding to see their exit success...as well as the business being able to keep all of the jobs and economic impact that would have otherwise been lost. For the smaller businesses, it's even more rewarding to have been able to help them access the necessary services and resources to get an outcome they otherwise wouldn't have had any chance of achieving. Rightly, with the successes, impact, and ROI created; one might assume someone like me would have created significant wealth for themselves along the way...and most advisors in my industry who have worked with as many clients as I have truly are one-percenters. Alas, my journey to the point that I discovered what being an underearner is and how to address it...has conservatively cost me over $1 million in compensation (much of it for work I'd actually and successfully delivered)...earnings that, frankly; I could not afford to lose. No, I wasn't swindled by anyone...and it's not something that happened TO me, it happened FOR me; as it has given me a whole new perspective on another obstacle that stands in the way of many entrepreneurs and potential clients on their way to significance.

Let’s dive into what underearning really is, how it sabotages entrepreneurial success, and—most importantly—10 actionable strategies to break free and claim the abundance you deserve. Yes, DESERVE:

What Is Underearning, Really?

Underearning isn’t just about making less money than you’d like. According to Underearners Anonymous, it’s a multifaceted condition that goes far beyond your bank account. It’s about "the inability to fully acknowledge and express our capabilities and competencies." It’s underachieving, under-being, and undervaluing yourself, no matter how much money you make. For entrepreneurs, this can manifest as charging less than your services are worth, procrastinating on high-impact projects, or shying away from bold opportunities that could skyrocket your business...or even billing for work you've done. Like addiction; the consequences aren't just to self - they impact your relationships, those you love, and those who depend on you (as an entrepreneur, that includes your employees, your customers, and your community). The stress created by long-term effects of underearning can lead to additional physical and mental health challenges.

Think about it: Have you ever turned down a lucrative client because you felt "not ready"? Have you hesitated to raise your rates, even though you know your value? Have you ever given of your time unnecessarily; when there's no clear beneficial reason to do so? These are symptoms of underearning, and they can keep even the most brilliant entrepreneurs stuck in a cycle of struggle.

How Underearning Sabotages Entrepreneurs

As an entrepreneur, underearning doesn’t just limit your income—it erodes your confidence, stifles your growth, and threatens the sustainability of your business. Here’s how it shows up:

• Time Indifference: You put off critical tasks, like following up with leads or launching a new product, wasting time on low-value activities instead of driving your vision forward.
• Idea Deflection: You dismiss brilliant ideas that could scale your business, convincing yourself they’re "not practical" or "too risky."
• Financial Strain: By undercharging or avoiding money conversations, you create cash flow problems that make it hard to invest in marketing, tools, or team support—stunting your growth.
• Self-Sabotage: Underearning often stems from a deeper fear of success or failure, leading you to unconsciously hold back from fully stepping into your entrepreneurial power.

The impact is profound. Underearning keeps you playing small, trapped in a cycle of frustration, and unable to achieve the freedom and impact you set out to create. But here’s the good news: Underearning is not a life sentence. It’s a condition you can overcome with intentional action and mindset shifts.

10 Powerhouse Tips to Overcome Underearning as an Entrepreneur

You’re not here to settle—you’re here to thrive. These 10 tips, inspired by the tools and principles of Underearners Anonymous and tailored for entrepreneurs, will help you break free from underearning and build a business that reflects your true worth.

1. Face the Fear Head-On Underearning often stems from fear—fear of rejection, fear of failure, or even fear of success. The first step to breaking free is to acknowledge these fears without judgment. Write them down, name them, and then ask yourself, "What’s the worst that could happen if I charge what I’m worth or take that bold step?" Spoiler alert: The worst-case scenario is rarely as bad as your mind makes it out to be.
2. Track Your Time Like a CEO Time indifference is a hallmark of underearning. As an entrepreneur, your time is your most valuable asset. Start tracking how you spend it—every hour, every day. Use a tool like Toggl or a simple notebook to log your activities. Then, ruthlessly cut out low-value tasks and delegate where possible. Focus on high-impact actions that drive revenue and growth.
3. Set Bold, Written Goals Entrepreneurs who underearn often lack clarity on what they truly want. Get specific. Write down your income goals, client acquisition targets, and business milestones for the next 1, 3, and 5 years. Break them into actionable steps and track your progress weekly. This isn’t just about accountability—it’s about giving your brain a clear roadmap to success.
4. Raise Your Rates (Yes, Now!) If you’re undercharging, you’re not just underearning—you’re devaluing your expertise. Research industry standards, assess the value you provide, and raise your rates accordingly. Remember, clients pay for results, not your self-doubt. Test higher pricing with new clients first if you’re nervous, but don’t let fear keep you stuck in the "bargain bin" of entrepreneurship. Also on the topic of pricing - determine your pricing based on data. What is the marketplace charging for services like yours? What profit margins are typical for your products in the marketplace? Not "I'll charge what I think my clients/customers will pay." because, again - "What I think" is what has us here in the first place.
5. Stop Debting, Start Saving Financial solvency is a cornerstone of overcoming underearning. If you’re racking up business debt to "keep things afloat," you’re perpetuating a cycle of scarcity. Commit to a no-debt policy, even if it means starting small. At the same time, build a savings habit—set aside a percentage of every dollar you earn, no matter how small. This shift signals to your subconscious that you trust in your future abundance. Don't get me wrong - their are wise and strategically beneficial uses of debt in business. That's not what we're talking about here. We're talking about the need to "reset" one's mindset from "scarcity" to "abundance." Consequently; you may want to consider pausing any of taking on "strategic debt" (if possible) until you've invested the time in addressing the beliefs and behaviors that have contributed to your situation and decision making.
6. Surround Yourself with Action-Takers Isolation fuels underearning. Connect with other entrepreneurs who are committed to growth and action. Join masterminds, attend networking events, or participate in accountability groups. Underearners Anonymous emphasizes the power of community—find your tribe and lean on them for support, ideas, and inspiration.
7. Embrace Possession Consciousness Clutter—physical, mental, or emotional—keeps you stuck in scarcity. Adopt a mindset of abundance by letting go of what no longer serves you. Clear out your workspace, unsubscribe from distracting newsletters, and release clients or projects that drain your energy. This creates space for new opportunities and prosperity to flow into your business.
8. Negotiate Like a Pro Underearning entrepreneurs often shy away from money conversations, but negotiation is a skill you can master. Practice asking for what you want—whether it’s a higher fee, better terms, or a strategic partnership. Role-play with a trusted friend or mentor to build confidence. Remember, every "no" is just a step closer to a "yes."
9. Invest in Your Growth Underearning thrives on underinvestment—in yourself and your business. Commit to continuous learning and growth. Hire a coach, take a course, or invest in tools that streamline your operations. The more you invest in your skills and systems, the more confidently you can charge premium rates and deliver exceptional value.
10. Celebrate Every Win Underearners often overlook their achievements, focusing instead on what’s "not enough." Break this cycle by celebrating every win, no matter how small. Landed a new client? Celebrate. Hit a revenue milestone? Celebrate. This rewires your brain to associate action with reward, fueling your momentum to keep pushing forward.

Learn More and Take Action

If you suspect you might be struggling with underearning and want to dive deeper into understanding this condition and how to overcome it, I highly recommend visiting UnderearnersAnonymous.org. There, you’ll find a wealth of resources, tools, and community support to help you on your journey to financial and personal abundance.

Your Breakthrough Starts Now

Underearning isn’t a reflection of your worth—it’s a habit you can unlearn. As an entrepreneur, you have the power to rewrite your story, reclaim your value, and build a business that thrives. The tools and strategies above are part of your roadmap, but the real transformation happens when you take action.

So, what’s your next step? Will you raise your rates, track your time, or join a community of action-takers? Whatever it is, commit to it today. You didn’t start your entrepreneurial journey to settle for less—you started it to create a life of freedom, impact, and abundance. Now, go claim it. Visit bizleavable.com to get a complimentary business "Leavability Assessment" to uncover hidden value in your business, and a "30-day Dash" that includes 30 days of tips to help you improve your business and how it aligns with your life.