Discover your billing blind spots and determine if you're charging what you're really worth.
Small business owners sometimes struggle to assert their worth in a competitive market place. Sometimes, they suffer from imposter syndrome. Other times, they just feel grateful to have clients who pay on time, so they undercharge.
And, over time, some simply don’t increase their rates, afraid of having awkward money conversations. But, rest assured, you’re not alone.
If you run a small business, knowing and charging your worth can be a difficult thing. Take this fun quiz to learn a little bit more about your billing blind spots.
How Do You Articulate the Value of Your Work?
1. My output-it’s a thing of beauty!
2. I’m all about making sure my client is happy
3. I deliver good work, on time and on budget
4. My work helps my client’s business get to the next level
When You Begin a New Project, How Do You Determine Your Rate?
1.I think about how excited the work makes me feel and charge what I have in the past
2.I make detailed project plans so I know how long it’s going to take
3.I ask the client what their budget is and make it work
4.I think about the value of my work in the marketplace and round up
At What Point Do You Start Talking About Price with Your Client?
1. I let them take the lead and bring it up
2. I focus on establishing rapport, then let it come up organically
3. I don’t wait: It’s one of the first things I bring up
4. After I get a feel for their business goals and how my work adds value
Once You’re Working, How Involved Is Your Client in the Project?
1. I want a client who trusts me to make my magic
2. We’re like peas in a pod-we talk every day!
3. I work with agreed upon check-ins to make sure timelines are intact
4. I maintain open lines of communication to ensure we’re aligned
When You Want to Earn More Money, You:
1. Increase rates
2. Book more work by offering discounts
3. Work longer hours: Time = money
4. Add opportunities: Upsell or create add-ons
What Do Your Clients Love About You?
1. Creativity: I put my heart and soul into making something original
2. White glove service: I give stellar service, from start to finish
3. Reliability: I’m always on time and on budget
4. Results-orientation: I make sure my work actually serves their business goals
Result: Mostly 1’s – The Passion Chaser
For you, work comes first, billing comes second. You absolutely love what you do and think it’s a privilege to wake up every morning and do what you love. This fulfillment is the major reason you went into business for yourself.
While passion is key, it’s important you don’t undersell yourself. You deserve to be paid your worth, so remind yourself that passion is part of the worth you provide. Don’t let yourself be too easy-breezy about the business aspect of what you’re doing. Make sure you’re growing a sustainable business doing what you love by charging your worth.
Result: Mostly 2’s – The Time Worshipper
As a time-worshipper, your eye is always on the clock. You pride yourself on exacting project plans and work-back schedules so your clients get the best bang for their buck. Your approach is disciplined and you never fall prey to scope creep.
One downside is that you’re not thinking about the value of your work to your clients… it may be worth a lot more than your hourly rate! While it pays to be mindful of timelines, make sure you assert your value in other ways too!
Result: Mostly 3’s – The People Pleaser
Your empathy meter is set on the highest notch. In a world where others are looking for more cash, your focus on building and maintaining relationships definitely sets you apart.
The possible downside is that you’re giving your client too much control. You might fall prey to annoyances like scope creep or a client taking advantage of your good will. Spend some time reconciling how to maintain client relationships while also demanding your true worth.
Result: Mostly 4’s – The Value Provider
Congratulations! You’ve worked hard to understand your worth in terms of the value your work holds for your client. You see the “bigger picture” in what you do and make sure your client does too. You are truly on the path to running a successful and sustainable business.
While being worth-focused is key to effective billing, there are other things to running a business. Ask yourself: Can you up the ante on client service? Are you managing your time and productivity most efficiently? What more can be done to grow your passion for what you do?
Want to learn more about charging your worth? Download Breaking the Time Barrier by FreshBooks CEO Mike McDerment.