Fact not fiction

Thousands or even tens of thousands of pounds' worth of revenue are being lost every week by professional services who are:

True Worth

True Worth

a) Undercharging

b) Discounting unnecessarily or

c) Giving their time away for free

To make life easy, I'll refer to these later on as a, b and c.

Sadly, these behaviours are all too commonplace. It's not just SMEs that are suffering, it's also the larger firms. In addition, whether the fee earner is newly qualified or a seasoned professional doesn't seem to make a difference.

So what are the effects?

Broadly speaking, they can be divided into two main areas: the business and the individual but the overall effect is one of suffering. Depending on the frequency, volume and quantity of a, b and c, the effects will, of course, be greater or lesser. In extreme cases, they could even be catastrophic.

1) Reduced profit

It's not rocket science is it? If you're doing a, b or c, your profit will be eroded bit by bit, as this is coming directly off the bottom line. In some cases, it could be causing serious problems.

2) Reduced value of the business

The knock on effect will be that if the intention is to sell the business, its value which will be determined by its turnover will be less than it could have been, had charging been done correctly. For example, an accountancy practice is normally sold at the price of its turnover. So if the owner is undercharging in one way or another by say 10%, then they will lose 10% on the sale of the business.

3) Working too many hours

Effects 1 and 2 often lead to working too many hours either because the provider has taken on too much unpaid work or because she is trying to make up the shortfall.

4) Stress

Depending on the severity of the behaviours, stress is a natural by-product of not charging properly and working too many hours, as she is worried about her overheads and profit margins.

5) Inner conflict

Inner conflict is commonplace too as many professionals understand that they are under-valuing themselves and yet can't seem to change their behaviour. This is because the conscious mind and subconscious mind are not aligned.

6) Resentment

This can lead to a feeling of resentment towards clients as the fee earner is working too hard for too little and probably not even being appreciated for it.

7) Low self-esteem

Not surprisingly low self-esteem is also commonplace and has nothing to do with the individual's ability to do the work or their experience; it's all about their beliefs.

8) Fear

If you add up the effects of 1 - 7, it is likely to cause fear, as there can be a feeling of overwhelm.

9) Out of control

This can inevitably lead to feeling trapped and therefore out of control.

10) Go out of business

Worst case scenario!

Fortunately, though, there is a way out. If you are ready for positive change, then why not order a complimentary copy of True Worth, How to Charge What You're Worth and Get It by visiting: www.thetrueworthexpert.com.


by for www.femalefirst.co.uk
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