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

October 7, 2011 by Karen Swim

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 Life Conscious Finance: Uncover Your Hidden Money Beliefs and Transform the Role of Money in Your Life

Mystery Ingredients and Sharp Knives: Top 7 Business Lessons from Chopped

June 30, 2011 by Karen Swim

Image by J Heffner via Flickr

I am a huge fan of cooking shows that combine culinary skill with a mix of competition. One of my favorites is Chopped. If you have never seen the show, Food Network describes it in this way:

Chopped is a cooking competition show that’s all about skill, speed and ingenuity where four up-and-coming chefs compete before a panel of three expert judges and take everyday items and turn them into an extraordinary three-course meal. Course by course, the chefs will be “chopped” from the competition until only one winner remains. The challenge? They have seconds to plan and 30 minutes to cook an amazing course with the basket of mystery ingredients given to them moments before the clock starts ticking! And the pressure doesn’t stop there. Once they’ve completed their dish, they’ve got to survive the Chopping Block where our three judges are waiting to be wowed and not shy about voicing their culinary criticisms! Our host, Ted Allen, leads this high energy, high-pressure show which will have viewers rooting for a winner and cheering for the losers. CHOPPED is a game of passion, expertise and skill – and in the end, only one chef will survive the Chopping Block. Who will make the cut? The answer is on Chopped!

The intensity rivals any sporting event and always has me on the edge of my seat to see who will be chopped. In the midst of the high drama, there are valuable lessons that can be applied to business. Below I have listed my Top 7 takeaways from the chopping block.

Basket of mystery ingredients – In business we are often called upon to face unfamiliar elements. We may have competitive challenges never faced, complex operational issues, customer demands or even an unfamiliar economic landscape. We are handed a basket that requires us to figure it out and make it work. Many times the chefs on Chopped are required to work with ingredients foreign to their experience. They cannot leave them out, or simply quit so they adapt. Often they will relate it to a familiar ingredient and work from that foundation. They may smell, taste and then quickly experiment to find the best way to tackle the unknown.
Planning under pressure –The pressure is on and you’re required to be innovative and deliver. Now more than ever you must have a plan. On Chopped, the chefs quickly map out a strategy as they review the ingredients. The rest of the time is spent executing that plan. They must think fast on their feet but all realize that without a plan precious time will be wasted and failure is inevitable. Whether you are responding to a crisis or have a looming deadline it is worth it to take the time to plan your strategy. You’ll waste far more time reacting without a strategy and piecing it together as you go.
Adjust when needed – Fire on the stove, dough that doesn’t rise, missing ingredients. In the kitchen and in business stuff happens even when you have a plan. Be prepared to quickly adjust when you’re hit with a glitch or a curve ball.
Taste before you serve– Chefs taste ingredients and dishes while cooking. This is especially critical when working with a new element or recipe. You cannot assume that all the components will combine for a final dish that your customers will like. You should understand the experience your customers will have, test it out and ensure that the quality and experience is consistent with brand expectations. If you are implementing a new website, widget, or policy walk through it like your customer. Know exactly what you are serving, or risk having dishes sent back to the kitchen with complaints.
Use the clock to your advantage – The clock is always ticking in business. There are deadlines and deliverables that must be met. Often we must coordinate efforts across departments, vendors or clients’ internal teams. On Chopped the chefs cannot extend a deadline or ask for a few more minutes. They must deliver on time or risk being eliminated. When the clock is ticking, set a realistic and achievable goal and do what it takes to get the job done. Use time pressures to your advantage to eliminate inefficiencies and focus on what is truly important.
Details matter – In the final round of Chopped, the two remaining chefs are judged not only on their desserts but the entire meal. The sum of the experience can win the game, even if you were not the best on every single course. In a close game, the small details can really help you win with customers and stand out from your competitor. Too often we focus on one course and fail to examine the breadth of the customer experience.
Come to win – While the losers go home with invaluable lessons and often a renewed passion for their craft, all show up to win. They practice, put in extra hours and come to the competition with their A game. If you’re not showing up every day determined to win, then it may be time to reassess. Every day someone will be crowned the champion, whether you choose to compete or not. Why not go for it and have the satisfaction of knowing that even if you lose you gave your heart and soul to the effort?

5 Things I Learned from Injury

March 15, 2010 by Karen Swim

: Image via Wikipedia

For the past several months I have been nursing a shoulder injury. I am accustomed to working through pain but this was different. My mobility has been limited and the pain was so bad, I spent many nights unable to sleep. Life was not going to stop, I still needed to run a business and no way was I not working out, so I found ways around it.

Below are 5 things my shoulder injury taught me about business:

Each part contributes to the whole. If one part is injured or not functioning well, even if seemingly has nothing to do with the other parts, the whole is affected. You are forced to fix the injury or adjust to accommodate the dysfunction.
When function is off, focus on form. I could not jump out of bed each morning and crank out push-ups to wake me up. My morning routine and my workouts changed as I focused on form rather than the limited function of my shoulder. I became more aware of doing things well than the volume of reps.
Innovation. Ideally, I would have loved to just “fix” the injury but it was not that simple. This is also true in business. However, I could not stop working or working out until my shoulder healed, instead I had to get creative. In finding creative ways to continue with life I also discovered new things I like to do.
Patience. We cannot always barrel through a problem or obstacle, sometimes we have to wait it out. Not easy to do but the waiting does not have to be in vain. As I waited (and continue to wait) for total recovery, I expanded my focus and worked on things that had fallen off my radar.
Humility. A few times I was brought to tears my searing pain from a wrong movement. Talk about being humbled! Some days I had to take time from work or shorten a workout but life did not fall apart as a result of my humanity.

I have not enjoyed being injured but in many ways I have emerged stronger. In the same way, a problem or breakdown in your business or on your job does not have to be terminal. Often problems can expose gaps or areas of neglect and in the end you not only heal the injury but the whole.

How about you? Have you ever been injured? How did it change you?