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Is Your Business Model Keeping You Broke & Overworked?

Most holistic practitioners and coaches (as well as other service providers) are operating off an old and ineffective business model that is not only hurting them, but is also doing a disservice to their clients.

That model is providing "one-off" sessions and trading dollars for hours, which makes you a commodity instead of a respected professional and expert, and gives only temporary (and less valuable) help to your ideal clients.

There's a better model for offering your services that will free up your time and energy, increase your ability to earn a higher income and offer more services to your clients, and allow those clients to get better quality help that will truly make a difference for them.

The dollars-for-hours and pay-as-you-go business model is the traditional model for holistic practices and service providers. Massage therapists, chiropractors, book keepers, laywers, coaches, psychologists, nutritionists, virtual assistants, etc. are usually either taught during their training or copy their counterparts to follow this model of charging an hourly (or $ per time unit) fee.

Unfortunately, this model is the straight road to burn-out, limited income, and mediocrity in your work. There are several reasons for this:

1. There's only so many hours in the day that you can be servicing your clients. Once you cap that, you can't earn any more money unless you raise your rates (or overwork yourself). And raising your rates can pose other challenges, some of which are market-driven and some of which are mindset issues.

2. You have more tasks to do to run your business than just being with your clients, especially if you're a sole proprietor. Until you delegate your non-service-based tasks to others, you have to do everything yourself. (And just like raising your rates, delegation has several practical and mindset challenges).

3. The pay-as-you-go model keeps you scrambling for new clients–or having to constantly chase your old clients to remind (or convince) them to come back for more.

4. Giving your clients the pay-as-you-go/-need/-want option creates inconsistency and uncertainty with your monthly income. Yikes–that's not a fun roller coaster!

5. No matter what service you provide, pay-as-you-go also does a disservice to your clients' long-term satisfaction and assistance because there's no sense of continuity and relationship-building, long-range planning and support, or accountability for maintaining the action steps that will keep them growing.

Following this old way of running a service-based business and offering your services happens by default. As I mentioned, it comes from being taught by limited observation ("this is what everyone in my industry does") or by instructors who do not have training and experience in creating a high 5-figure or more business.

In order to break free of the limitations this traditional model creates for you and the people you are meant to serve, you must begin to operate from the new model of service and transformation: Packages, Programs, Products & eventually, Partnerships.

I'll share more about these four aspects of the new model in the coming weeks, starting with Packages later this week. Until then, here is your assignment:

1. Determine how many hours you are currently working (or want to work) on or in your business

2. Determine how many of those hours you are/want to be serving your clients

3. Determine how many hours per week or day you are/want to be doing other tasks to run your business (hint: marketing alone should average about 3 hours per day for a full-time business)

4. Determine how much money you are/want to be making (net) per week/month

Look at all those numbers compared against each other and you'll immediately see how dollars-for hours just is not going to cut it anymore!

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Do you need help developing and marketing a better business model to make more money with less effort and more fun?  Schedule a complimentary MMM Strategy Session with me to find out how Marketing, Mindset and Manifesting techniques can help you create THAT kind of business!

Your partner in success,

Lisa Smith
Marketing, Mindset & Manifesting Coach
www.MarketingMindsetAndManifesting.com

 

 

Comments

  1. This is so true Lisa, I'm only just learning this now. As a psychologist and an educator I spend so many hours working outside the paid hours I do with clients and students. That's why I'm launching my new business this week where I can reach a lot more people and put what I have to offer out there without burning out in the process. Great tips, look forward to reading more!

    • Sounds like a smart move, Leanne! Service-oriented professionals, and women especially, tend to “give away the farm” in regard to their time and resources. This is a recipe for burnout and resentment. And it can harm your clients in the long run.

      I’d love to have you post something about your new business on my facebook business page: http://www.facebook.com/mmmcoach

      Your partner in success,

      Lisa

  2. Lisa,
    I certainly have seen this message a lot lately.  It would be great to get further ideas from you on how to really add value to a coaching package.
     
    Kristen Byrd, LCSW
    Self Care Coach
    http://shineonwithkristen.com/

    • Thanks for adding your comment and query.

      There are several ways to add value to a coaching package. Some involve adding more of your time (and pricing for that personalized time). But you can add more value without having to charge more by giving your clients material that is reproducable and doesn’t require your time (beyond the initial creation of it). An example would be templates, worksheets, audio/video training, and other helpful resources (some can be other peoples’ stuff as long as you have permission or it is part of the emminent domain of the web, and should not be a close competitor). I have a resource library of these materials and website links to share with my clients.

      I’d be happy to give you some ideas about that in greater detail during a MMM Business Strategy Session. You can find out more about that and book your free session here.

      Your partner in success,

      Lisa

       

  3. Do you think that calculating dollars per hour invested is a good practice to find out if you are valuing your services at a high enough rate? Not necessarily charging that amount per hour, but just deciding on an hourly rate to motivate yourself to work more efficiently? That's advice I often get and it's a bit discouraging in the beginning stages of a new business because so much time is put in with less payout than you'd eventually like.
    ~ Anjanette
    http://www.lillarose.biz/Anjanette

    • Hi Anjanette.

      Thanks for your question. I can understand the feeling of discouragement you might feel from the suggestion of this practice.

      Certainly, in the beginning of your business and determining rates, it can seem like you’re pulling numbers out of the air. Most business owners (especially solopreneurs and service providers) will start with what they have researched is the “going rate” for that type of service in their area or market. This tactic is based on the mindset that 1) people are shopping based mostly on price and won’t pay more for something they can get elsewhere for less, and 2) not feeling confident about (or “good enough” with) what service they are providing.

      These 2 factors are, however, beliefs, not truths, and setting your rates based on them is doing a disservice to yourself as well as those you can best help.

      There’s so much I could right about this topic (which gives me ideas for future blogs), but for now let me leave you with this thought: Set your rates based on what your current financial needs are (know your business and personal expenses and set a rate that will meet at least the minimum). Do some inner work (I teach my clients ways to do this) that allows you to stand strong and confident in stating that fee to your prospect. If YOU don’t feel worthy of charging that, THEY won’t feel you are worth it, either.

      I hope this reply was helpful. If I can be of further assistance, let me know. Tapping (EFT) is one of my preferred techniques to establish a greater sense of confidence and worth. If you’re not familiar with tapping, watch my instructional video here.

      Your partner in success,

      Lisa

  4. Excellent post! As a market researcher I've definitely struggled with trying to determine the best ways to break free from the trading time for money business model. I look forward to reading more of your blog. 

  5. Great tips, Lisa! Thanks for sharing.

    • Thanks for the feedback, Lorii! Hope it was helpfu to you in making some tweaks to your business model for greater success!

      I love how you’re helping people find the love they want and deserve!

      Your partner in success,

      Lisa

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