Every creative entrepreneur experiences uncertainty.
Your workload feels overwhelming. Your creativity is stretched thin. And when you look back at the week, the value you gave out doesn’t equal the cash you took in.
So, is the hustle worth the entrepreneur life?
You’ve got options. And mail…probably.
Some of those options are by-the-book financial moves (speaking of books, here’s a list of our favorite finance books for entrepreneurs).
Others require you to shift your money mindset. But either way, you can build wealth and live your passion at the same time.
In this 2-part series, we’re going to show you strategies to implement so you can overcome this rut, earn more, and move towards a business that’s financially healthy and drool-worthy wealthy.
Let’s jump right in.
First, build a foundation and envision your end goal
How was Rome built? Frankly, that’s a long story and not why you’re here. But we’ll summarize it.
With a strong foundation.
To reach your end goal, you need a starting point. So, determine your monthly income and expenses for your business and personal life. But, keep them separate; here’s why.
Next, calculate your net worth by assessing everything you own and everything you owe.
This number will give you a clear picture of what you need to survive. Create a budget (you can use money manager apps like Mint or YNAB). And then….stick to it.
Yeah. That simple.
But, you also want to flourish and thrive. So, here’s the fun part. Make a list of everything you want, need, and desire in your life — seriously, everything. The trip to Morocco, the Dolce & Gabbana purse, 10 acres for your 50+ puppies to roam.
What will that cost you? An educated guess is fine.
Then set the salary goal that’ll drive you to those dream goals. Is it $50,000 a year? $100,000 a year? $500,000 a year?
Now you know what it’ll cost to pursue your dream life.
So, create a plan for how that revenue will come in
Go back to your salary goal. For example, let’s say it’s $100,000 a year. Break it down to a weekly wage, which would be just under $2,000.
And how many hours do you want to work each week? Be honest with yourself– what does your dream week look like? Thirty hours? So, you’d need to make about $65/hour.
How does this number match up to your current rate? If you offer package rates, does your time feel appropriately compensated?
If you aren’t sure, spend a month tracking every hour you work — including the time it takes to respond to emails or answer calls, check Facebook engagement, manage invoices, etc. Every second counts.
If what you desire to earn doesn’t match up to what you are making, it’s time for a money mind shift!
Look, you deserve it. You’re putting in the hard work, and you deliver a great product and exceptional service. Just because you’re a creative, or maybe new to the entrepreneur game, doesn’t mean your work can’t yield wealth.
Next, in Part 2, we’ll give you strategies for setting a higher rate your customers will pay.
In the meantime, what’s holding you back from charging this rate now? Share with us in the comments below.