Why you may need to increase your prices

The income that you generate in your own business allows you to do three things:

1. Financial freedom is the obvious one.

If you were to replace yourself with an employee doing the same work at a commercial salary would there still be any profit? If not, this is self-employment rather than a business.

It may be that self-employment is all that you want or it may be a step on the way to growing an independent business. Yes, there was a point when I was in this situation too on the way to scaling my business. Earning money for ourselves is usually a major motivation in setting up a business, so let’s do it well.

2. Quality and pride.

If you want to provide a service or product of which you can be proud then you need to be able to spend sufficient time to put in the work required. Do you feel as though all the work you produce is top quality? How often do you rush to complete a job because it is just haemorrhaging cash and time? Only do work that you can be pleased to acknowledge as your own.

3. Time freedom.

If you do not charge enough to pay someone to do the work it is often the business owner who puts in the extra hours to complete the job. Proper pricing will pay for time, either personal time or time to grow your business.