Ep. 14 - The Price of Power - Moving from Survival to Thriving

SummaryIn this engaging conversation, CEO Sisters, Liz Szporn and Sarah Trueman explore the challenges faced by female entrepreneurs, particularly around pricing and self-worth. They discuss the alarming statistic that less than 18% of women business owners pay themselves a salary consistent with industry standards, highlighting the need for a shift in mindset towards valuing their work. The duo delves into the concept of the 'worth gap', the importance of understanding invisible work, and the transition from hourly billing to value-based pricing. They emphasize the significance of knowing one's costs, the dangers of scope creep, and the necessity of creating opportunity buckets for passion projects. Ultimately, they encourage listeners to respect their businesses through appropriate pricing strategies and to take actionable steps towards growth.TakeawaysLess than 18% of women business owners pay themselves a salary consistent with industry standards.Most  entrepreneurs reinvest profits back into their businesses instead of paying themselves.Charging what you're worth is one of the scariest things for entrepreneurs.Invisible work often goes unaccounted for in pricing strategies.Billing by the hour commoditizes your expertise and undervalues your work.The transformation economy focuses on the change you provide, not just the service.Understanding your costs is crucial for setting prices that allow for growth.If everyone is saying yes to your prices, you may be underpricing your services.Chapters00:00 Introduction and Setting the Scene03:38 The Worth Gap: Understanding Female Entrepreneurs' Salaries06:31 Pricing Mindset: The Fear of Charging What You're Worth12:09 Invisible Work: Accounting for Time and Effort14:57 Transitioning from Hourly Billing to Value-Based Pricing21:05 Survival vs. Thriving: Calculating True Business Costs26:00 The Fear of Rejection: Pricing to Avoid No30:37 Non-Negotiables in Pricing Physical Goods36:00 Hidden Discounts: The Cost of Scope Creep41:53 Opportunity Buckets: Balancing Passion Projects and Profit44:59 Mindset Check: Respecting Your Business Through Pricing46:50 Action Steps for Growth: Evaluating Your Pricing StrategySOURCESThe Polsky Center at the University of Chicago (2024): This is the source for the "18% of women vs 42% of men" stat. It highlights that even in high-growth incubators, women significantly underpay themselves compared to their male counterparts.Intuit QuickBooks "State of Small Business Cash Flow": This study found that 61% of small businesses struggle with cash flow, and 32% specifically reported that they cannot pay themselves or their employees because of it.The "Gender Pay Gap" in Self-Employment (IPSE/HoneyBook): Research often shows the gap is actually wider for the self-employed (often around 30-40%) than it is for traditional employees, largely because women tend to "negotiate themselves down" before even sending a quote.The Gender pay gap for FreelancersThe Transformational economy by, Joe Pine   (video intro)Want to learn more about what working with Liz looks like?  Head to Your Business Matters to schedule a Discovery call with her