“Empty pockets never held anyone back. Only empty heads and empty hearts can do that.” – Norman Vincent Peale
Norman Vincent Peale was a minister and an author; he wrote the wonderful book “The Power of Positive Thinking.” I love this quote, because I believe that if we trust our ability to be creative in our heads and our hearts, then our pockets will always be full.
But being creative is also about learning to charge what your work is worth. If you develop your creativity, gain experience, and provide good service, the money will follow. But that doesn’t mean you shouldn’t be money smart. So, let’s get real about money:
1. To run a successful business you need to make a clean fifty percent profit. Using a ten-point scale, with ten being the highest, rate how well you’ve done in the last six months.
I would give myself a seven. In this challenging economy, I had a hard time charging my full mark up; I ended up making a profit of thirty-five to forty-five percent on most jobs. But I want to get that seven up to at least an eight in the next six months. That’s my goal.
2. In the last six months, how many times did you lower your prices to get a job?
I would say I’ve been a nine in this category. I still think it’s bad business to lower your prices to get a job, but, sometimes, you have to do it.
3. Have you evaluated how many hours you spend on each event? What is your hourly rate?
I’m not going to answer this question, because I do not want to scare you!
4. Have you updated your hourly rate in the last two years?
I certainly hope you have! The more experience you have, the more valuable you are.
My idol, Coco Chanel, once said, “There are people who have money, and people who are rich.” If you’re creative and love what you do, you’re already rich. Beyond that, you just need to learn how to charge for your wonderful work.
Dear Readers, what do you think of these questions? How did you score? Please share!