Running a successful business isn’t just about offering excellent products or services. How you handle your money and set your prices can be the key to your success or failure. Here are some important mindset changes that can help transform a struggling business into a thriving one.
1. Stop undervaluing your expertise
One common mistake business owners make is thinking they need to lower their prices to get more customers. They believe that cheaper prices mean better deals. However, many customers actually wonder why something is so inexpensive, which can lead to them doubting its quality (think Stella Artois’ ‘Reassuringly Expensive’ campaign).
Customers who value quality are willing to pay a higher price for excellent service. When you set your prices higher (but fairly), you attract clients who appreciate your skill and expertise. These clients are often easier to deal with, pay on time, and respect your professional limits.
2. Understand the true cost of doing business
Many business owners make the mistake of setting their prices solely based on the time they spend, without considering all the other costs involved in running a business. When you work for yourself, you need to consider things like taxes, holidays, sick days, equipment, insurance, and other expenses that employees usually have covered by their employers.
Figure out how much money you truly need to earn each hour to cover everything and meet your financial goals. Doing this often shows that your minimum price per hour needs to be much higher than you initially thought. Although this can feel a bit uncomfortable at first, it’s important to know this in order to build a sustainable business.
3. Recognise that time and value aren’t the same thing
Charging just for the amount of time you work can make your efforts seem less valuable. For example, a task you finish in 20 minutes could save your client a lot of money or many hours of their own work. Instead of only charging based on how long it takes, set your prices based on the real benefit and value you bring.
Making this change means believing in what you can do and explaining clearly how you help your clients. When talking to potential customers, focus on the positive results and the benefits they’ll get, rather than just how you do the work.
4. Embrace transparency in your pricing
Being honest about your prices might feel a bit intimidating, but it actually helps your business grow. When you openly share how much you charge, you attract clients who can afford your services and avoid wasting time on those who can’t. This makes things easier and takes away some of the uncomfortable back-and-forth about money.
Try putting your prices on your website or mentioning them early when talking to potential clients. Being upfront like this usually brings in more serious people who truly want to work with you.
5. Learn to have confident money conversations
Many business owners feel uncomfortable talking about payments or reminding clients about overdue bills. Try to see these discussions as normal parts of running a business. When you speak about money issues calmly and straightforwardly, clients are more likely to respond positively.
Create clear and simple steps for sending invoices, setting payment deadlines, and checking in with clients. Having these routines helps make financial talks feel like a normal part of the process and less intimidating.
6. Separate expenses from investments
Not all money spent by a business is the same. Some costs, like insurance, software plans, or fixing equipment, are necessary to keep things running smoothly. Other investments, are meant to help the business grow, either by saving time, improving skills, or making more money. Knowing the difference between these helps you make smarter choices with your money. Be careful with regular expenses, but think carefully about spending on things that can help your business expand.
7. Build financial resilience through smart money management
Successful solopreneurs create methods to handle their money smoothly. This means keeping their personal and business finances separate, saving enough for taxes, and having some extra money set aside for slow times.
You might find it helpful to divide your income into different percentages. For example, you could set aside 25% for taxes, 50% for yourself, 20% for your business costs, and 5% as profit. Using this kind of plan makes things clearer and helps keep your finances steady.
8. Trust your instincts about clients and opportunities
You usually have a good sense about which clients and projects are right for you. If something about an opportunity doesn’t feel right, even if you need the job, go with that gut feeling. Difficult clients tend to cause more trouble the longer you work with them, and projects that don’t start off well rarely get better.
Waiting for the right clients who value your skills and pay fair prices is worth it. They make your work experience less stressful, give you better reviews, and often recommend you to others.
9. Focus on collaboration over competition
Rather than viewing other businesses in your sector as competitors, look for opportunities to work together. Collaboration can expand your service offerings, provide backup during busy periods, and create referral relationships.
This mindset shift from scarcity to abundance often leads to unexpected opportunities and stronger professional networks.
10. Treat yourself as a business owner, not an employee
Many people running their own business find it hard to change how they think, from being an employee to being the boss. When you’re a business owner, you get to decide your prices, set your own rules, and choose the clients you want to work with.
This change in mindset influences how you plan your day and how you interact with customers. Believe in your skills and present yourself as a confident professional, not someone just happy to get any work.
11. Invest in yourself and your business
Successful business owners consistently work on improving their skills, upgrading their systems, and expanding their capabilities. This could involve taking training classes, acquiring better tools and equipment, learning new things, or hiring extra help.
They see these efforts not as things they can skip, but as necessary steps to help their business grow. The businesses that do well are the ones that keep evolving and getting better over time.
12. Create systems that support growth
As your business grows, set up systems and processes that can handle more work. This includes managing your finances, keeping track of customers, and running day-to-day operations. Having good systems makes your life easier by saving you time and helps you provide a steady, reliable service.
Write down how you do things so you can delegate tasks to others or keep things consistent when you’re busy.
Getting financially successful in your business begins with changing how you think about money, prices, and the value of what you offer. These changes in mindset take time, but they are the key to building a steady and profitable business. Start by focusing on the areas that make the most sense for you right now, and gradually include other ideas as you become more confident and your business grows.
