The value of money

Your view on the value of money

What is money anyway? And why should we put thought into the value of money?

As defined by Investopedia: Money is an economic unit that functions as a generally recognized medium of exchange for transactional purposes in an economy.

I don’t know about you, but that is not what I would have defined money as. And that my friend is the point I want to make.

We all define money in our own unique ways. Merriam-Webster defines money as: something generally accepted as a medium of exchange, a measure of value, or a means of payment. Which maybe that is what you said too.

The value of money really is what YOU put on it. As as a small business owner, when someone tells you that your prices are too high, what they really mean is they don’t value what you have or they don’t value seeing how it could help them. Usually, it is the latter.

Your money glasses

We all have our own perspective on money and how we feel about it. And we bring that to our businesses. It shows up in what we charge, how we handle late or non-payments, as well as how confident we are in making an offer (as in asking for a sale). Also known as “asking for money.”

I’ve had clients tell me that they could never charge that much for their services. And this is often after we have done a cost-analysis and they know without a doubt how much it is costing them (as in paying out money) to run their business.

So, the glasses you are wearing when it comes to money definitely hinders or helps when it comes to how you value money.

Changing the shade of your lenses

Have you heard the saying “how you do one thing is how you do everything?” Well, let’s look at it as how you do money is how you do everything…

Examples:

• You are late paying bills, more than likely you are late to appointments
• You misplace invoices or even checks, more than likely you misplace your keys or your glasses and other important paperwork
• Your wallet is a mess or falling apart, more than likely you have a messy office (or even a messy house)

Can you see how you handle money, it shows up in other areas of your life. On a scale of 1-10, 1 being not at all to 10 being YES I succeed with my money!, go ahead and ask yourself:

How successful am I with money?

If you scored less than an 8, you have opportunity to take on a new, more supporting perspective when it comes to money.

Choose Your Money Path

Take a look at your business, how profitable are you? As in how much are you making after you subtract all of the costs you have to run your business. 

Are you at a loss, break-even or have extra (that’s your profit)? If you are at a profit, are you happy with it? If not, what would you like it to be? Write that number down and then write down as statement that will help you reach that goal. 

If you are at a loss or break-even, what is the number you would like to have? Write it down (even if it is a stretch). Let’s go with $5,000 profit each month.

Write that down as a statement. It will help you reach your goal.

Ultimately, you want to have a statement that is positively stated and in the present. An example:

“I am making $5,000 profit in my business every single month.”

What this does is it helps your brain begin to see in black and white what it is you are aiming for. The more you see it, the more the brain begins to work to achieving it, the more you begin to believe in it. It also puts your attention in the direction of what you need to be doing to reach that goal. Making money in your business shouldn’t be a hope. And in order to do that you need to take action. 

Get into action

Once you can see it and begin to believe, it’s time to take specific business and money making actions that will help you get there. Go back to your Business Plan. Look to see if it is still in line with what you need to be doing to reach your goal(s).

Several questions to ask:

• What needs to be improved or changed?
• In what way can I bring in additional income quickly? 
• Do I need to revise my ideal client and where I market to them?
• Where can I cut costs to lower my monthly burn rate?

Your Business Plan will guide you. Your Business Plan is the place for you to begin to look at money through different lenses. And it will drive you to take actions in the direction of what will bring you the results you need and want for your business.

When you begin to value money, like with everything, you begin to value yourself, your time, your energy and your customers. It’s amazing how putting on a new set of glasses can shift the way you do business and the way you do life.

A Business Plan is your business roadmap. Not sure you have one that is successful? Want help creating one that is? Or maybe you would like someone else’s eyes on the one you have to help you level it up. I offer complimentary Business Blueprint sessions. My gift to you. I do this because I am committed to helping service-based business owners step authentically into their business their way! I also value helping business owners, like you make more money.