Words For Hire

Business, PR, Marketing, Social Media 586.461.2103

  • Home
  • Services
  • About
  • Case Studies
  • Press
  • Contact
  • Blog
  • March 26, 2023

It’s Complicated! A Closer Look at Our Relationship with Money

October 7, 2011 by Karen Swim

A money changer device

Image via Wikipedia

This week we have been discussing Mrs. Teague, a woman who had a storehouse of content that she wanted to offer for free. She had definite attitudes about fee versus free. You can read part 1 here and the follow-up here.

In my discussion with Mrs. Teague I shared that I had no problem with anyone making a profit.  My disclosure prompted her to protest “But I’m a giver! Her sentiment seemed to imply that giving and profit are mutually exclusive.  This is one of the common beliefs I encounter that hint at our complex attitudes about money and in particular wealth.

I talk to so many small business owners who struggle with charging for their services. They do things for free, go beyond an established scope of work and very often charge too little for their services. They seem almost ashamed to make money, and are uncomfortable asking for it.

Money is not evil. It is inanimate and only has the power we assign to it. Having money does not make a person bad or less virtuous than those who have less. In this country we have these complex ideas about money. I have not heard anyone scream that they want less money but we have definitive ideas about how much is “too much” and how money should be spent when you live in abundance.

As a business owner you have to delve into your attitudes and relationship with money so that you can be a responsible steward of your life’s work. Getting to the root of any dysfunction can uncover attitudes that may be limiting you in multiple areas of your life.

Making a profit from your time and expertise does not make you a selfish, money grubbing charlatan. Profit is part of being a responsible business. Ensuring that you have a good and healthy cash flow says that you respect the precious gift which has been entrusted to you. Profit also allows you to be a giver. When you make money you can invest in other businesses goods and services, create jobs indirectly or directly and support the nonprofits and charities of your choice.

Unless you have taken a personal vow of poverty, your goal as a business owner should be to develop and sustain a profitable business.

Just as I am not against profit, I am not against free. With both, comes a responsibility to do what is right by your customers and your business.  If “free” is going to bankrupt your business, then it’s not a smart decision. You should also reconsider free if you cannot afford to offer true value without a price tag.  Even free comes with a cost and a decision as to how those costs are allocated – shared with the recipients or solely the burden of the giver.

Deciding on how much you want to profit is up to you. The first step is to understand your costs. Some businesses give so much that they struggle to cover the basics. MBO Partners has a great free online tool that will help you to determine your billable rate based on your costs and desired profit.

You can also begin to examine your attitude about money. Does money make you feel guilty, and if so why? Taking time to discover how you really feel about money provides an opportunity for you to become a much stronger financial manager, business owner and person.

Do you or someone you know struggle with making money or charge for services? How has it impacted your business and/or your relationships? Do you have any advice for others struggling with this issue?

Resources:

The Soul of Money: Transforming Your Relationship with Money and LifeConscious Finance: Uncover Your Hidden Money Beliefs and Transform the Role of Money in Your Life

 

Enhanced by Zemanta

Filed Under: Business and Career Tagged With: business, Cash flow, money, Small business, small business advice, small business challenges

3 Tips to Avoid the Money Trap

August 7, 2008 by Karen Swim

Stairs of rock to fit and placed into a natura...Image via Wikipedia

Written by Karen D. Swim

“As she rounded the second flight of stairs, she caught sight of something on the step. Folded green paper. She paused, leaned over. Twenty dollars. As her fingers brushed the bill, a current of air swirled behind her.

The man looked down at her body, sprawled awkwardly over the steps. A twenty placed at eye level.  A human trap.”

The passage above is from the fictional book, “Exit Strategy,” written by Kelley Armstrong (This author apparently writes otherwordly fiction but this particular book is a good old fashioned murder mystery).  In this passage a serial killer uses a folded twenty to divert a victim’s attention.  This particular victim was on her way to work and had already been reminded of her money problems.  As she mentally ran through solutions to help her afford a new dress, the money appeared in her path. Transfixed by the bill, and laughing at her good fortune she never looked above or below her to ensure she was safe in a deserted stairwell. Her focus was on the money alone.Dollar stair

While you may not meet an end as bleak as the one described in this fiction read, it is possible to fall prey to this very real human trap. We are besieged with the promise of easy riches. We live in a day and age where anyone can seemingly be rich or famous. Videos, emails, and advertisements place dollars at eye level in hopes that you will take the hook. If the opportunity for money intersects with your point of need, you may be tempted to grab that dangling carrot, without considering the consequences. And yes, there are consequences, and a real danger if you do not raise your eyes above eye level.

Money plays a big role in all of our lives. It is the trading commodity used to buy the goods and services that we need and want. We must be prudent with how we spend, save and invest this commodity. Our checkbooks are a mirror to our soul as they reveal what is truly important in our lives. Yet, how we make that money is an equally important decision that should not be made based on dollar signs and decimal points alone.

Before you reach for the money, here are three things you should consider:

  1. What strings are attached to the currency? Let’s face it there’s always a string! You may not see them all at once but they are there. A large salary may have a string attached to lots of travel and time away from your family. A business opportunity may be attached to giving up sole control. You cannot avoid the strings but you can choose which ones you will allow in your life.
  2. Who’s holding the cash (and strings)? I have known many people who reached for the money only to discover later that they were in business with a boss, investor or partner who neither shared their vision nor values.  The promise of financial relief quickly gave way to misery.  It is easy to make a financial decision but harder to walk away from one.
  3. Is the face value the real value? I learned this lesson early in my corporate career. I added up the hours I was working and discovered that my six figure salary was not so attractive after all. With the hours I was working, my hourly salary was equivalent to flipping burgers.  As an entrepreneur you may take a client job that seems valuable only to realize it would have been more profitable to walk away.

It’s nice to believe that money comes easy but in reality it rarely happens that way.  Even lottery winners have had to make trade-offs for their windfall. Most unprepared for the “easy” riches end up broke again.  I am definitely not anti-money but believe that when you allow money alone to motivate your decisions you may end up with a pocketful of regret.

Have you ever made a decision based on money that you later regretted? How do you maintain balance when making decisions that involve money? Add your two cents (or twenty dollars) right there in the comments. Your money is good here. 😉

Dollar bill stair image ©Alexander Dolgin | Dreamstime.com

Zemanta Pixie

Filed Under: Inspiration for Business Tagged With: business decisions, money

Copyright © 2023 · Legacy Theme on Genesis Framework · WordPress · Log in