Wealth is not a finite concept. The amount of wealth in the world is constantly shifting; home prices rise and fall and stock market prices go up and down. When there is economic expansion the overall amount of financial wealth grows. When there is financial contraction and recession the overall amount of wealth decreases.
So, how is the fluctuating quantity of wealth in the world relevant to you as an entrepreneur? Moreover, how can you create wealth consistently so that your business, revenues, and profits can constantly grow?
Your answer is found by considering the true source of wealth and financial growth. The true source is adding value to our world and to the people in it…
The more value you can create for others, the richer and more financially abundant your life will become.
Now, your absolute number-one goal as an entrepreneur, a business owner, and a professional is to figure out how to add this value. When you add value you make more money. While you should use your true north to help others, it is also important that you recognize the importance of charging others for what you provide them with.
Remember, your “true north”, the right direction for your life as well as your business, is a combination of your passion, purpose, and strengths. Once you identify your own true north you can use it to add value to the world. People will recognize the value of your product or service and they will be willing to compensate you for the value you have added to their lives.
Unfortunately, many entrepreneurs feel that in order to truly help others they must lower the value of what they provide. In other words, they feel obligated to give away their products or services at very reduced prices or even for free. This lowers their revenue and reduces their profits. It also lowers the “perceived” value of their products and services to their customers.
Think about this. When you pay very little for a product or service, do you actually value it highly? No, of course you don’t. In fact, you will more easily throw it away or not even use it completely. By contrast, when you pay a large amount for a product or service, you perceive it as having high value. Ironically, you actually get MORE value from it because of how you perceive it and because of what you paid for it.
Your customers and clients think the same way. Practically give away your products and services and the world will treat them as having little value. Underpricing or using low prices neither serves you or your customer. While it almost seems strange to think in this way, the logic is clear. Isn’t it?
Ultimately, undercharging is a huge mistake. While giving back is incredibly fulfilling, it is in no way morally or ethically wrong to reap financial success from the use of your strengths.
Remember, when you agree to help someone you agree to an exchange of value: you provide the person with a valuable product or service and the person, the customer, compensates you financially. You then develop wealth by adding value to peoples’ lives. The exchange of value is the foundation of the business world. It is fair and it is just. When entrepreneurs can’t see the exchange of value as the fair transaction that it is they often have feelings of guilt when they charge people for products and services.
This is what I call a “money-purpose” wound. Entrepreneurs with a money purpose wound believe it is wrong to charge money. They never receive compensation for the value they have added to the world and they never reap any kind of financial rewards.
Ultimately, the key to make more money is to heal this money-purpose wound. You need to recognize that the purpose of money is to compensate you for the value you have added to the world. When you add value to the world you deserve to be compensated for it.
Entrepreneurs who recognize this hold the key to financial success in their hands and will make more money. Provide high value to your customer and charge for it in a way that benefits both you and them. It is reasonable and fair to charge higher prices for higher quality and value. Embrace this truth and move forward on your path to becoming a true Conscious Millionaire!