EARNING THE MONEY YOU DESERVE
Today I’m going to be talking to you all about earning the money that you want and valuing yourselves
Now, first off and instantly what you want to think of is getting the mindset right. You’re either going to be running a very expensive hobby, or you are going to be running a business. Soon as you start taking money from people for you to provide your therapies, you are actually in business. As soon as you set up your business and as soon as you launch that’s when you got to notify the HMRC. The tax office. You don’t do it after a year you’ve been in business. You do it as soon as you set up.
So, the other question then that I will often get asked is about money. Because I’m often seeing therapists that they are discontent for their therapies. They’re not sure what to charge. They’re worried about charging too much and then they think that when they’re not getting the clients they’re charging too much, but then they go and offer a discount. I’m often seeing treatment, appointment available with twenty pounds off, or ten pounds off for August or whatever. Which is fine if that brings you, clients, in, that’s the visibility you want then that’s fine. That’s totally up to you, but what you’ll be doing then is working a lot harder for a lot less money. What you want to do is if you start doing offers is to offer value added.
What I want to take you back to is the pricing and how to work that out.
Firstly, you’ll go into market research and you’re going to see what other therapists are charging in your area. You’re not going to undercut them, you just want to see what the dearest ones are and what they’re providing, and what the cheapest ones are and they’re providing. If you end up in the middle, that’s fine. I think that’s the baseball park that we all start from is that we’re in the middle. But you’ve also got to look at what clients you’re targeting. If you’re targeting clients in an affluent area, they’re not going to pay for a cheap therapy. If you’re looking for clients in a rundown area, you’re not going to get paid for an expensive therapy. If you’re looking to provide therapies in a spa-like atmosphere in a spa-like clinic, salon, then again you can do those spa-like prices. We all know where we live, we all know who our clients are, we all know what our target market is.
You then got to look at actually what you want to do yourself. So how much do you want to do? How much do you want to earn? So weekly, or monthly, or yearly. You’ve got to pay yourself. How much do you want your business to earn? By looking at that you’re actually then breaking it down. Say we look at a year. How much do you want your business to earn in that year? You then want to look at how many weeks you’re going to work in that year. Are you taking two weeks off for Christmas? Do you have family and you’re going to take six weeks off in the summer and all the school holidays? Are you only going to work part-time? Maybe two, three days a week? You know what hours and what weeks you want to work, so put down in there how many weeks of the year you want to work, how many hours in a week do you want to work? You can work that out then, for when you’ve got those totals. How many clients do you need a month, how many clients do you need a week? If you’re going to work it then, how much do you want to earn a month? You then want to break down, “Well right, if I’m charging 20 pounds a session, I need so many clients a week. Or I need so many clients a month”. You might look at that and go blimey that’s far too much work, I can’t achieve all that in that time. You know then that your prices are going to have to go up. So, you’ve got to look at your pricing because how much do you want to earn, how much do you want to pay yourself, how many clients are you going to need to cover that because you’ve also got to cover your expenses.
So, your normal things like tax and national insurance. You might have room rent. You might have travel. You might have laundry bills from washing the towels and everything else that you use. There are products that you’re using, there’s couch roll. You might be using a mobile phone so there’s phone rent. Maybe if you do it from home you’re going to have the costs be taken it off from your home. You might be looking at all of your organisations you’re part of. You’re part of a national organisation, FHT or the Federations of Small Businesses, or Beauty Group. You might also be part of a local business group. Again, like I said earlier you have FSB, or Chamber. You’re looking at those fees as well. You need to break down and write down what your expenses are going to be every month. What is that going to cost you to run your business? Where might you have fees of, say like £125, for being a member of the Federation of Small Businesses, how much is that a week or how much is that a month? You add that then to your expenses, you take so much of account to put money back on your tax bill.
So you got to look at all these points of what money you need to earn. The thing is you might look at it and go, “Oh my god it’s going to cost me a fortune in expenses”. You might also then if you’re looking at it for the first time that you’ve been running your business for a couple of years, this might actually get you to look at it to see whether there’s any way you can save money. You might find that you’re spending more out, and you can get a better deal on your phone or on your tablet data. You might find that you can get a better fibre deal for your internet. You might find that you might then want to ring around and find cheaper car insurance, or you might want to have a look around to see what organisational memberships- You’ll be able to find out whether you can cut back on your bills to make fewer expenses. You might not necessarily need a lot of the organisations now that you use. You might not need a lot of the stuff. How many magazine subscriptions are you with? Have a look at stuff like that. You look at all that to see whether you can cut down on your expenses to save you some money. You might then want to start looking at actually mentoring. Do you need business help? Do you need business advice? There’s plenty out there that’s for free, but you might need someone to one coaching or mentor from somebody and you add that to your business expenses. To help you to improve to grow your business to be able to earn more money. How much is it costing you for your website, for your website host? Or if your web developer is charging you for updating or for backing up your website. How much is that costing you? It’s also your training. You can actively be looking for more CPD points. Are you paying for more training? Is it online courses? Is it learning more therapy skills? Are you learning some different business skills? All this the training can cost you, and again you take that into account as part of your expenses.
You then look at how many hours that you’re actually going to work per month. It’s actually how much you want to work, how many hours you want to work, how many clients you want to see or how many clients do you need. To cover your costs, to cover your expenses, to pay you, and to make a profit. You might not always make a profit, but you have to pay you, ’cause you’re not going to work for free are you? You’re not going to do all your gifts and help other people for nothing. Yes I know we love our job, I know we love what we do, we love it with a passion. But we still got to keep a roof over our head. We’ve still got to contribute towards the family home or we’ve still got to pay for what we want. We’ve still got to look at our business as that it is earning money because we want to pay ourselves. Have you got a marketing budget? That’s the scary one when you start thinking, “Do I need a marketing budget”. Well, you need to have some funds there. Maybe you want to pay for your advertising. Pay for your leaflets, pay for your business cards. Maybe to pay for a Facebook Ad. These are the different things that you need to look at. It’s not just a case of somebody’s going to pay me 25 pounds for a half hour back, neck, and shoulder massage. Or someone’s going to pay me 45 pounds for a back massage. I want to earn £10 an hour so 10 pounds of it is mine and the rest of it all went to the business. You’ve got to see what it is you need. So then you’re not looking at your diary going, “I haven’t got enough clients. My diary is empty”. Your bank account, knowing your numbers might be better. You might be better off than you thought. It’s knowing your numbers.
If you know your numbers, you know how much you’re earning, your business is earning. You know how many clients you’re seeing. You know if you’re anywhere near your target. You know if you need to bring any extra work in, and you know how much that you’re paying yourself. These are all the things that you need to look at. A lot of this then also comes down to, as I said, the mindset of are you an expensive hobby or are you a business? It’s having the mindset but it’s also the belief in yourself. You’re not just doing this for fun. You have paid a lot for training. You have spent countless hours, weeks, and months learning your gifts, going through your training. Remember all the case studies you’ve done, remember all the assignments you’ve done, remember all the studying you’ve done for all the muscles and all the different techniques, the hours you fretted over your files learning. You know, that’s not just something you can rock up and do. That takes time and that’s why we’re paid what we’re worth, we value what we do. Clients need to value what we do. If they don’t value you they’re not worth your time. You’ve got to value yourself, you’ve got to believe in yourself, and your clients will value you. You’re not looking for people that want a discount. You’re not looking for people that won’t show. You’re not looking for people that are going to be a late cancellation. You want people that value, that love you and believe that you’re an expert. So they will turn up on time, they will turn up whenever you’re needed they will think of you and they will be in touch.
Lastly, is accountability and support. There’s therapists groups out there, support groups, and also with the Federation of Holistic Therapists have got hopefully local support group in your area. There might be therapists that run their own groups that maybe there might be nothing of influence. They’ve created their own groups. Maybe your clinic where you go to run a therapy room. Maybe they run a group as part of the clinic. Maybe they- Chat with the owners. See if they can organise a monthly meeting with all the therapists can get together to talk and to share. Have a look at Facebook Groups. There are lots of Groups on Facebook whether it’s for aromatherapy. Whether it’s for Indian head massage. Whether it’s just holistic therapist support. There’s therapist group support there within my own academy. I’ve got the page where I can be in support and give advice like this bite-sized learning and more, within that. Within that, I’ve got my own Groups. There’s two Facebook Groups I run. It’s the ATA Hub, which is there for therapists that have worked with the academy. So they’re present and past members, there’s those that have been involved with Webinars, there’s those that bought online courses, there’s those that might do coaching or mentoring with me, there’s those that have and have had their business reviews. All things like that. Those that have worked within the academy, they become part of the Hub. I’ve also got then the Mastermind Group, which is for the academy members.
That’s my bite-sized learning today. It’s knowing your numbers. When you want to earn the amount of money you want it comes down to knowing your numbers. What your expenses are, what you’re paying for, how much you actually want to earn, how much you want the business to earn, what profit you’d want it to make, what things you want to do within the business. It’s breaking all that down and knowing your numbers so that you can make sure you’re getting it right. You’re working the hours you want to work, you’re working the weeks you want to work, and you’re seeing the number of clients you want to see and that you’re getting them into your diary.