The Value of Small Business: Getting Paid What You Are Worth.
Copyright 2006 Melissa Galt
One of the most common challenges for any small business is
determining what their worth is. This is different than
establishing their value as value is dependent on the
marketplace, competition, skill set, and exclusivity. These
elements are external to the business and can be measured
objectively. Worth, on the other hand, is an internal
measurement and subjective in nature. Worth has more to do
with innate talent, confidence (belief in one’s abilities),
core ethics, and other less well defined and measurable
benefits.
Too often it seems, small business owners struggle with
their worth versus their value. They can easily put a price
on their service or product based on value but less readily
incorporate their true worth in that price. It is the worth
factor that determines if a caterer charges $20 per person
or $55 per person for a menu, not necessarily the cost of
ingredients. The ingredient that is most important is the
worth of the creative talent. Just as in interior design it
is the worth of the designer that establishes whether to
charge $65/hour or $200/hour in the same marketplace. It
often has little to do with education and training and much
more to do with a subjective valuation of talent and
confidence.
To really get what you are worth, it is vital to establish
that worth and make it a benefit that you can accept,
promote, and be proud of. Often when business owners want
to raise their rates they are pushing beyond their own
limitations and going beyond their comfort zone. They
measure their worth by what they would spend or afford, not
by what they provide. I learned quickly in design that I
have a much greater worth than value and that enables me to
state my hourly fee with confidence and ease. If I didn’t
believe that I was worth more than twice my value, I would
stumble over the words.
If price were no object, and you could charge what you are
worth, what would that be? If it were not based on the
marketplace and competition, what is your hourly fee? Look
hard at this number and then review your marketplace and
competition and more importantly your USP, unique selling
proposition, this is the single element or collection of
elements that sets you apart in business. This is the
reason you should be hired or contracted instead of someone
else. Rarely is it a price point, more often it is a
singular product or service difference. Or it may be an
education, experience, or talent difference. When most
business owners are asked what they are worth, they often
say “more than I’m getting,” but can’t say how much more
or why. Once you can truly vocalize your true worth and
share with clients and customers why you are worth that,
you will be able to increase your value and subsequently
your charges. Until you can go beyond your own boundaries
of worth this will be impossible to do.
Many of us have patterns of worth established in childhood
and these can be tough to change, but necessary. It is
essential that you find that place where you release your
worth from limitation and open up your potential.  Once
you have defined your worth (which can and should grow with
age and experience), you will be better able to determine a
realistic and fair value for your goods and services and
command that price with confidence. We also fear raising
rates (increasing our value) as we may lose clients. What
we forget is that we often spend more of our time chasing
the little customer than we do working significantly with
the big customer. Defining your worth and subsequently
re-establishing your value will mean more dollars to your
bottom line and more profit in your pocket.
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Melissa Galt is a Lifestyle Designer and Speaker based in
Atlanta, GA. She hosts a series of blogs on design tips and
trends and produces a monthly ezine dedicated to helping
subscribers design their signature life. For the latest
teleclasses, seminars, and ebooks on designing your life
check out http://www.melissagalt.com .
