The fear of asking for money is not unusual
Let’s face it, every business needs money to keep it going. And yet one of the biggest fear factors for many business owners, particularly micro and small businesses, is asking for money. Yes, the fear of asking for money is not unusual.
There are a number of reasons behind this.
- Small, and certainly Micro-business owners, have to do the asking themselves. They fear being rejected if they ask for their ‘right price’ and so they discount it to get the business.
- Asking for money is not something many of us have been trained to do. We have no experience and it is a step into the unknown.
- We worry about how the customer will perceive us. Potentially, chasing money will cause the customer to dislike us and we will lose them.
- We are taught that money is a taboo subject. Most of us don’t like talking about money, it is considered rude to do so. This transfers into a fear of even discussing it.
- We fear we are in a weak negotiating position compared to larger businesses.
How can we get over this fear?
Ultimately the fear of anything is about mindset. In order to remove the fear we must change the way we think about it.
Here are 7 tips: –
1. Understand and know your own pricing structure
Why have you set that price? If you know the reason for the price, then taking less is undervaluing yourself. In the end you need to work longer and harder just to earn the money you need to survive and that is not a nice position to be in.
Make sure you know how you are going to ask and how you are going to justify the price. Although you don’t want to sound like you have learnt a script, it is important to know what points you want to make.
3. Remember, every business needs money
If you don’t ask for money you will not have a business. So, ask anyway!
4. Your customer wants your product or service
Otherwise they wouldn’t be talking to you in the first place. If you can provide what they want, then you are actually in a strong negotiating position.
5. You need the money to survive
As does every business owner. If your customer won’t pay the full price they are taking food out of your mouth!
6. Learn not to take a ‘No’ personally
It is a business decision and you now have more knowledge than you had before. Find out why they said no. If necessary, review your technique. What could you do better? If it is purely a price issue, then question whether that is a person or company that you would want as a customer anyway.
7. Have a formal procedure in place for debt recovery
Regular statements and timing of letters and phone calls to chase debts is important. A customer is not a customer if they don’t pay you. Don’t worry about losing a customer who you consistently have to chase for payment.