When coaching business owners and senior executives the question often comes up about their value in business, and it is a debate regularly played out across the news whenever ‘fat cats’ get more money or take significant bonuses. I am sure we are all now thinking about the recent collapse of BHS and the growing need for Sir Philip Green to clarify his role and responsibilities about the huge dividends paid out to him prior to the sale in 2015. We have all at one time or another said out loud ‘how can they deserve that amount of money’, and such large sums can be regarded as ‘obscene and unnecessary’ by people outside of those sectors.
For newer business owners, knowing how to charge for your services can be the hardest decision to make, particularly in the earlier years when confidence is lower.
So what is it about a person’s role that means they can justify their worth, and is it about ‘deserving’ an amount of money?
A 2011 YouGov survey looked at a number of key factors that people thought deserved more financial remuneration and ‘responsibility’ was considered the most important factor in determining earnings, with age being the least important. This helps business to justify the salaries of Senior Executives whose roles have a significant impact on the success of a complex stakeholder matrix and where hundreds, if not thousands or millions, of people’s livelihoods depend on them; although often our inability to understand their levels of responsibility makes it easier for us to judge them as greedy or not worth it.
‘How well the person does the job’ came second in the key factors stake, and it is this opinion which I believe is fundamental for small or new business owners. Being able to demonstrate how good you are is essential in securing ongoing and new business, particularly when you are not preaching to the converted. Getting this message through to people who don’t really know you or have any experience with you is a huge task and is often the reason people charge less than their worth when they first start out, and then become disillusioned and give up as their income falls below expected levels.
Coaching can help you to understand and believe in your worth, and give you the courage to be able to say how much you earn or charge and not feel the need to defend such figures. It can give you the determination to be clear on your worth and help you to deliver a strong message that gives others the confidence in you to know that you will do a great job.
If you are having difficulty in answering the question ‘how much am I worth?’ then contact us today so that we can help you to become fearless in your thinking and able to earn your worth.