I'm a long-time student of entrepreneurship and am constantly fascinated by the difference between people who make good money and those who make absolute mountains of money.
I recently wrote a new article for my
asknickusborne.com site, and thought I would share it here.
Why? Because although I wrote it with freelancer writers and copywriters in mind, I think it might apply to any solopreneur or small business person.
Here's what I wrote:
Aim beyond the income you need to make each month.Freelancers face a number of psychological barriers when it comes to making more money.
One of these barriers is being drawn to earn only the amount of money they need.
Let's imagine a freelance copywriter with a mortgage, bills and other expenses that require him to earn $7,500 gross each month.
Somewhere in his mind he latches on to that figure as the amount of money he needs to earn.
Half way through one month he might be at the $6,000 mark. He's close to his "target". Then he estimates on a new job and prices it at $2,000. And he gives himself a pat on the back, because he has just exceeded his monthly income requirement.
This is freelancing as a replacement for a salary.
Too many freelancers look at their income as being a replacement for the monthly pay check they used to receive. And once they hit that mark each month, they sit back and relax.
In terms of earning a living, that's not the worst approach in the world.
But it's a terrible way to grow a business.
And this is where you have to ask yourself the crucial question:
"Am I trying to replace my salary, or am I trying to build a business?"
If you are trying to build a business, then you need to change your way of thinking.
Let's go back to that $2,000 estimate. Our imaginary freelancer was pleased to get the money, because it took him over his monthly target.
But could he have done more? Could he have expanded the scope of the project? Could have added some extra value to the job which would have lifted the price to $3,000 or $4,000? Or, indeed, could he have said no to the project altogether and freed up enough time to take on a different project at twice the fee?
All too often freelancers think in terms of simply meeting their financial obligations each month. And in doing so they leave a great deal of money on the table.
This is one of a number of psychological barriers that prevent freelancers from charging for their true value.
Be mindful of your decisions when you estimate for work.
And always remind yourself to think less like a freelancer and more like a business-builder.
