Pricing
Bootstrap ‘n’ hustle
‘Bootstrap’ and ‘hustle’ form part of the common vocabulary in the land of start ups.
‘bootstrap’
verb: get (oneself or something) into or out of a situation using existing resources
‘hustle’
verb: push one’s way
I get where you’re coming from.
You want to get on with building your business and keep operating costs at a minimum wherever possible. It’s a delicate dance.
But let’s add to the vocabulary and treat buying services as an investment. This is about laying the foundations for your business.
Pricing approach
My approach to pricing is underpinned by value and fairness.
I operate by charging on either a day rate, fixed fee for projects or a retainer basis.
I take into account a wide variety of factors and includes:
•market rates
•nature and scope of work
•my expertise
•time involved
Based on the above we negotiate a fair price.
Part of my ‘services’ includes a ‘Kick-starter’ Mentoring Programme. Learn more here.
You’re not a transaction
It’s a respectful no from me when it comes to hourly rates. I don’t actually believe that this offers the best value to my clients.
It becomes a clock watching exercise that feels more transactional and less about building enduring relationships.
Targets and profits are important but not at the expense of the quality of the client relationship. I try to aim for balance.
This is why I focus on creating value-based working relationships.
The lure of equity
Typically, I do not work in exchange for equity in a business.
I think it’s worth sharing an honest note of caution here.
Be careful about offering equity as a sole or part form of payment. You don’t know whether your business will be flying high in the future in which case you may be overpaying or diluting control for potentially short term services.
The reality is that every business has operating costs that need to be met and managed.