Are you working your fingers to the bone? Are you burning the midnight oil and the daytime gas? Are you pouring blood, sweat and tears all of your work and still finding your bank account dry as a bone?
No need to feel alone or ashamed! I've been there and lived that. Trust me, I've seen my fair share of rough times. During these times, I was stressed the freak out! And to make matters worse, my cell was on the verge of disconnection, my rent was severely delinquent and my cabinets...let's just say we found creative many ways to jazz up a package of Top Ramen that wouldn't probably warrant a cookbook!
It's hell when you have loads of passion with little profit. My friends and family thought I was avoiding work. How insulting! I work harder and put in longer hours in my own business than I ever did working for "The Man"! I am passionate, hard working, willing to put in long hours and I love what I do. But I was in the poor house. It was time to understand why in Sam Hill I didn't have any money.
You see, when anyone says, "I work so much and I'm still broke", it's more than likely that at least one of three issues are at the root cause:
1. Spending Beyond Your Means
2. Not Charging Appropriately For Your Products or Services
3. Poor Time Management
Now, don't feel disheartened. There is hope, my love. Let's break it down and fix this issue now do you can be the business owner you really want to be.
Spending Beyond Your Means
I don't want to get to deep in this subject. The bottom line is, if you overspend, you're not alone but you're also not growing. I shared a personal story about a time I was overspending in business in a post a year ago. You should READ IT before we continue our discussion. I know you'll be able to relate.
Not Charging Appropriately
Setting prices seems to be such a huge mystery to many of us in the wedding industry. We do silly things like price our products and services by copying what someone else is doing or by mystery calling and pretending to be a bride (or a groom, as I recently heard someone share). However, there is a better way to go about this.
Figure out the actual time you spend on your client. This includes responding to emails, driving to appointments, taking and making calls, conducting online research, productions and assembly, etc. You need to charge your clients for ALL the time you spend working for them. If you divide your pricing by the actual hours you spend on their wedding or event, and you find that you have an incredibly low hourly rate, then it's high time to adjust your prices.
If you are looking for a great way to track your time on a project, I highly recommend Harvest.
Poor Time Management
How much time do you spend on unprofitable activities? If you were managing paid opportunities throughout you day, you'd be benefitting financially. So, what's really going on?
I challenge you to accurately record your time for a week. Don't change your actions, just document. No one has to see this, so by fudging, you'll only be lying to and cheating yourself. Be sure to write down the revenue you're bringing in for that activity.
I would bet $1Million that you're wasting ridiculous amounts of time and bringing in $0 for your business!
Follow my advice, implement even the smallest changes and you will start to see a positive difference to your bottom line. I promise.
We all know that sharing is caring, so I need you to do me a solid...
1. Share a time you've had too much work and not enough cash-ola. How did you turn it around?
2. Share this post with your friends on Facebook and Twitter!
As always, thank you for reading our blog. If you want to understand more about making and increasing your money, you will LOVE hearing Linnyette Richardson-Hall at Backstage Bridal Pro Academy in September. REGISTER today to reserve your seat! You won't want to miss this!