You need money to make your beautiful dreams a living, breathing reality. But – like many women – you’ve developed (or grew up with) a hate-hate relationship with money, which can lead you to unconsciously repel money in various ways.
This is a topic close to my heart. And one I still struggle with daily. I grew up very much middle class. We had ‘enough’. But I always felt much poorer than my friends. We didn’t go out to eat, I got most of my clothes from thrift stores (back when it was most certainly not cool), and I got my first part-time job when I turned 13.
I’ve made a lot of financial mistakes in my adult life, due to having an unhealthy money mindset (mostly a ‘scarcity’ mindset). And looking back now it is easy to see how I went wrong.
This year, a big project for me is to change my mindset around money. I want to be fully present to my clients, and grow my business, without a constant nagging worry about making enough money.
And if you’re reading this far, I have feeling you feel the same…
Today we’re going to dive into 3 common money mistakes that are keeping your coaching business broke, self-sabotaging behaviors that keep you from earning what you’re worth, how negative self-talk can affect your financial future, and 3 smart business investments you’re probably not making.
Are you read to makeover your money mindset?
3 Money Mistakes That Keep Your Coaching Business Broke
Poor money management has been the cause of more business failures than any other single issue. And it’s no wonder. We aren’t born knowing how to manage money. Most of us aren’t taught how to handle it either. We figure it out along the way, through much trial and error.
Those same mindset issues and bad habits that wreak havoc in our personal finances can plague our businesses as well if we’re not careful.
Shiny Object Syndrome
Some things are just hard to resist—especially when your friends and colleagues are all jumping on board! New tools, training, group coaching programs and even business models can all have a strong pull, and if you aren’t careful, these shiny objects can quickly distract you from your current goals.
If you find yourself catching shiny object syndrome frequently, try this two-step plan instead:
- For “too good to refuse” offers, make a plan for achieving a positive ROI before you purchase. If you cannot find a (realistic) way to make the purchase pay for itself, don’t buy it.
- For exciting new business ideas, create a “someday” list. Jot down your idea and a basic outline, then get back to the task at hand. Now that great idea won’t be lost, but it also won’t join the ranks of half-finished business plans that litter the internet.
Falling for the Sunk Costs Fallacy
If you’ve ever said to yourself, “I’m not using this subscription, but I can’t give it up! I’m still paying the launch price and now it’s much more expensive!” Then you’ve fallen for the sunk costs fallacy.
This common mistake is famous among economists, and we all fall victim to it from time to time. Simply put, the sunk costs fallacy is what makes us justify investing more money or time in something—even though we’re not seeing results—because we’ve already spent so much. It’s what encourages us to repair the car one more time (after all, you just put new tires on it), eat a meal we don’t enjoy (simply because you’ve paid for it), and yes, continue to pay for tools and resources you’re not using.
Take a few minutes and examine your current business expenses. What are you paying for month after month that you’re not using? Either make a plan to put them to work for you, or cancel them. Stop falling for the sunk costs fallacy.
Too Much Penny Pinching
You thought this was all going to be about overspending, didn’t you? Here’s the kicker: Spending too little is just as bad for business.
When you’re constantly on the lookout for free and low-cost tools or working 16-hour days because you “can’t afford to outsource,” you’re not doing your business any favors. Sure, it looks like you’re bootstrapping and working really hard to make something from nothing, but what you’re really doing is digging yourself a rut it will be nearly impossible to climb out of. Not only that, but you’re reinforcing a scarcity mindset that will continue to plague you for years if you let it.
Rather than pinching pennies, learn to spend money strategically. Buy what you need, when you need it. Invest in top-quality products and programs rather than settling for the low-ticket, half-baked plans. Just like quality clothes, cars and furniture, quality services and software last longer and work better. And unlike that car, good quality business tools will pay for themselves.
Self-Sabotaging Behaviors That Keep You From Earning What You’re Worth As A Coach
We all do it. No matter how successful you are, at one time or another you’ll fall into the self-sabotage trap, and the price of admission is high.
- Your income will suffer.
- Your self-esteem will plummet.
- Your confidence will find new lows.
The end result? Frustration. Burnout. Resentment (of your clients or your business). And yes, even more self-sabotaging behaviors. This downward spiral can quickly turn devastating, but stopping it is easy when you learn to recognize the symptoms.
Did you mean to apply for that high-end coaching program but missed the deadline? Or maybe you were going to send a proposal to a potential new client, but waited too long? Or maybe you simply waited too long to take advantage of a sale price on a hot new app that everyone’s raving about.
These and other missed opportunities can often be blamed on simple procrastination, one of the most destructive habits we suffer from. Procrastination is what keeps us working late at night to make a deadline, costs us money in late fees, and even costs us business.
If you’re prone to procrastination, try these techniques to put an end to it:
- Recognize your fear. What often keeps us stuck is simple fear. We’re afraid that even with that amazing coach we still won’t reach our goals, so we put off applying. We’re afraid we’ll look bad when compared to other proposals, so we just don’t send one. But if you want to be successful in business, you must learn to recognize and face your fears, then do the work anyway.
- Visualize the life and business you desire. Imagine what it will be like to have that amazing business you’ve been dreaming about. Picture your ideal workday, daydream about that fabulous vacation you’ll take, and imagine VIP days with your ideal client.
- Reward yourself. It’s okay to give yourself a little incentive for getting things done. Take yourself out to lunch; buy a new pair of shoes; take an afternoon off. Do what’s most likely to motivate you to power through your fears and take the next step.
Failing to Complete Your Projects
Be honest. How many half-written books, partially planned programs, and unfinished products are cluttering up your hard drive right now?
If you’re like a lot of entrepreneurs, the answer is probably several.
You started all of them with great enthusiasm. You planned out the modules or chapters, created the slide decks, and maybe even outlined the sales page. And then…you just stopped working on it.
Maybe you tell yourself that you’re too busy. Maybe you “need to do some more research.” Or maybe you simply lost interest. But the truth is, none of those are the real reason. For a lot of coaches, this self-sabotaging habit is actually a symptom of a lack of confidence, and it’s keeping you from the success you deserve.
Consider this: You cannot know the actual success rate of a program you’ve never finished, and you cannot improve upon something you’ve never completed. So rather than filling your hard drive with half-finished projects, power through and start releasing them—even if you believe they’re not perfect, and even if you think they’ll never sell.
How Negative Self-Talk Can Affect Your Financial Future
“I’ve never been good with money.”
“I hate budgets.”
“I’ll never be a 6-figure earner.”
“My market won’t pay premium prices.”
If you’ve ever heard these statements come out of your mouth—or even in your head—then you’re engaging in a damaging habit known as negative self-talk. By telling yourself these lies (and yes, they are lies) you’re reinforcing the beliefs that go along with them.
What you visualize and believe is what becomes true.
Tell yourself that you’re not good with money, and you won’t be. Believe that budgets are horrible chores to be reviled, and you’ll resist creating one. Convince yourself that you can’t earn a 6-figure income, and you won’t.
It’s not “the secret.” It’s a scientific fact. Known as a self-fulfilling prophecy, this kind of self-talk results in poor performance simply because we act as if it’s already true.
If you tell yourself that you’ll never be a 6-figure earner, you will not do the things that 6-figure business owners do. You won’t work to grow your mailing list (“No one reads my emails anyway”), you won’t increase your coaching rates (“It’s not like I’m some top-earning coach”), and you won’t build a brand worthy of a 6-figure income (“A beautiful brand isn’t necessary at this income level”).
By contrast, if you act and think as if you already are a 6-figure earner, you’ll approach your business quite differently. Your confidence level will increase. You’ll present a very different brand to your prospective clients. You’ll go out of your way to connect with those who can and will afford to pay your higher rates.
How to Combat Negative Self Talk
The first step toward changing your negative self-talk is to simply acknowledge that you do it. Tick a mental checkbox every time you catch yourself making negative statements, whether out loud or in your head.
Make a note of the ones that come up most often for you, and identify their origin if you can. For example, if your ex-husband continually berated you for your spending habits, chances are your “I’m no good with money” mantra can be laid right at his feet. It’s time to turn that thinking around.
The next time you catch yourself saying “I’m no good with money,” take a minute to recall 5 instances where you were good with money. Maybe you paid off your credit cards or saved for a house or built an emergency fund. Rephrase your self-talk to, “I used to be bad with money [if that’s true], but now I make smart choices to achieve my goals.”
Just as negative self-talk becomes a self-fulfilling prophecy, so does positive self-talk. Reframe your thinking, and your business finances will certainly improve.
3 Smart Business Investments You’re Probably Not Making
I get it. You’re a solo-preneur.
You’re proud of the fact that you’ve bootstrapped your business from the ground up, tackling every task that comes your way. You built your first website, dove in and learned how to edit and upload videos to YouTube, figured out how to format your email newsletter, and even wrestled your shopping cart into submission.
But that feeling of pride that comes from doing the work yourself comes with a price. Too many small business owners are working too many hours, suffering from burnout and frustration—not because they’re not good at what they do, but simply because they’re unwilling to truly invest in their business.
They’re letting a scarcity mindset prevent them from taking the steps—and making the investments—that will have a massive impact on their business. And maybe you are, too.
By far the biggest objection to outsourcing you’ll hear is “I can’t afford it.” Perhaps you’ve heard—or even said it. But the fact is, if you’re a serious business owner, you can’t afford not to outsource.
The time you free up by not doing those mundane, everyday tasks is time you’ll spend more profitably, by:
- Creating new coaching programs.
- Upping your content marketing game.
- Recording video and audio content.
- Connecting with your audience through email and blogging.
- Working with clients either one on one or in a group setting.
- Or just enjoying your life!
Outsourcing should never be looked at as an expense. In fact, if you’re not getting a return on your outsourcing investment, take a hard look at what you’re outsourcing and to whom, because there is likely plenty of room for improvement.
Most online business owners start out using low-cost tools with limited features. For example, you might be using PayPal exclusively for product sales, and manually adding buyers to your mailing list each time you receive a payment. While that’s an acceptable solution when time is easier to come by than money, you’ll quickly outgrow it. The problem is, too many entrepreneurs fail to recognize the benefits of true automation.
Not only is trying to “make do” with a pieced-together system costing you sales, but it costs actual dollars, too. You (or your VA) will spend extra time simply getting it all to work, rather than letting the tools do the heavy lifting.
Recognize when it’s time to uplevel your marketing tools to include true funnel automation, and watch your income increase dramatically!
It is possible to build your business solely on your own. You can pay attention to what others are doing and reverse engineer their systems. You can read books and blogs and maybe invest in a few carefully chosen training programs.
But there will come a time when your growth will flat line, and you’ll struggle to reach that next level. That’s when it’s time to invest in coaching. And yes, even coaches have (and need) coaches. A coach can help you see past your own blind spots, work through the blocks that are holding you back, and build a business you love—on your own terms.
Don’t be afraid to invest in your business. Wise investments such as coaching, automation, and outsourcing will pay for themselves many times over.