Painting Yourself Into a Corner

Judy is scared. I know because she told me. Flat out, direct, and honest, I can see the fear in her eyes.

I get it – the stakes are high, and she doesn’t want to make a decision she can’t take back.

Her team could lose their jobs. Judy could lose her livelihood and purpose. Judy’s clients could lose a trusted partner. There’s lots to lose...

Judy is not just selling a company; she is transitioning a piece of her identity.

And, like Judy, if you’re positioning your company for sale, you want to unlock the value you’ve built and see real financial gains.

One of the biggest value drivers in your business is consistent, predictable revenue. But business owners often make the mistake of thinking distinct revenue levels are the main measure of business value.

In fact, Judy wondered if grossing $2 million in revenue would indicate it was a ‘good time’ to sell. It would be great if positioning and selling your company was that simple – but it’s not.

There are many variables, including the real business assets you’ve developed, your cash flow, future earnings, and market conditions.

Your company is only as valuable as the dollar amount a buyer is willing to pay for it – hopefully, an ideal buyer.

Today’s Question:

What is the first step to having consistent, predictable revenue? I believe everything flows from pricing your services.

But Here’s the Twist . . .

The more I teach about pricing, the more I hear comments such as, “I’m pricing based on what the market can bear,” “I pay attention to my competitors and price in a similar way,” or “I’m afraid to price higher, because I might lose clients.”

Pricing for value is a huge roadblock for women. In fact, it’s a bigger challenge than I initially thought, because it’s about mindset rather than skills.

Do you pride yourself on being a lifelong learner? Do you grasp new information quickly, and are you excited to put that new knowledge to work? While we can quickly master new skills, our thinking must evolve, which takes time. That evolution can feel slow and labored. We want action! Agility! Achievement!

It feels great to leap into the mechanics of your new skills, but without the shift in thinking, you’re unlikely to be successful. Nowhere do I see the need for new thinking more acutely than with pricing. Many women are driven by a deep-seated fear – of conflict, rejection, or failure – and price their services too low.

No matter how adept they are at building their pricing model, their limiting beliefs keep their prices at the same level for years and keep them tongue-tied when it comes to discussing their prices and their value.

Once you “set it and forget it,” changing your pricing can feel risky, setting you up for difficult conversations with clients and buyers. We paint ourselves into a corner by starting out with low prices, letting fear keep us there.

Now What?

How do you know if pricing is a problem for you? How many of these thoughts have you secretly had?

• I hesitate to speak directly about my fees.
• I find myself apologizing for what I charge.
• I offer discounts to people who didn’t ask for them!
• I feel compelled to offer free services to sweeten the deal.
• I sometimes wonder if I’ve paid my dues yet.
• I find myself locked at the low end of a price range.
• I suffer so much stress around money that I can’t focus on strategic issues – for my company or my clients.

If your mindset is fixed on “reasonable” prices and you are afraid to make changes, your business can experience serious symptoms, often mistaken for problems.

Addressing your pricing is your best first step if your revenue is consistently unsteady, your company growth feels stunted, and taking time off seems impossible.

Falling victim to The Broken Cookie Effect® – with its deadly combination of pricing too low and over-delivering the service – means you’re really not making a profit. It also means you’re unlikely to attract or retain high-quality staff, so you feel more alone than ever – exhausted and living on crumbs.

-- Excerpt from Patty’s book, Your Hidden Advantage: Unlock the Power to Attract Right-fit Clients and Boost Your Revenue

Exit readiness is a strategic and ongoing process that involves setting the stage for a smooth transition, maximizing business value, and ensuring your legacy endures.

This foundational strategy is timeless and positioning your company for your exit will help you generate more revenue, streamline operations, and build real business value.

Women who have successfully exited their business have shared with me that the most successful way forward was having a trusted, knowledgeable business advisor who could be objective and caring.

That’s the role I fill, helping the owner with the practical, emotional, confidential, and logistical puzzles that plague the exit process.

Just like Judy, your business is an embodiment of your passion, hard work, and aspirations. That’s why it’s crucial to have a dynamic roadmap, which is the first step to an Elegant Exit™.

Your exit can lead to wealth if you choose to sell your company, but what brought you here won’t get you there.

An Elegant Exit™ requires a new way of thinking, new skills, a simple and elegant design, and an advocate on your side. Contact me to learn more. 

Discover your Exit Readiness Index™ with this assessment: http://she-exits.com/