Pricing Your Work for Profit with Shanna Skidmore
If you've ever thought about starting a business or taking your side-hustle full time, chances are you've had to think about money. If the idea of money management invokes feelings of anxiety instead of confidence, then this podcast is a must-listen.
Meet Shanna Skidmore, the fairy godmother of finances for the creative entrepreneur. Shanna is a business strategist and financial coach, and is even nicknamed the "dream-releaser" by her clients. In this episode Shanna discusses how to gain a better understanding of money in your business, what you should consider when pricing your work, and gives us an overview of the must-know numbers for your business. Shanna also talks about the importance of money-mindset, identifying your money personality, and how to set expectations for your clients.
12:00- How Shanna got started as a financial advisor in the creative industry
15:15- Where to start with money management for your business? Open a separate bank account.
17:45- When is your business a "real business"?
19:00- Knowing what you want from your business from the beginning
20:10- Importance of knowing your money mindset or money personality
21:43- Numbers you need to know
22:35- #1: Total Sales in 1 year
23:50- #2 Total Expenses + Costs
25:55-#3 Your profit (what is left after you factor in your costs/expenses)
26:05- Take yourself on a "money date" once a month
28:28- Why 70-80% of small business fail in the first 10 years (hint: it involves money)
29:30- Activity does not always equal success
31:40- Importance of the "daily bread" product in your business
33:20- How creatives can structure pricing
33:45- Give yourself permission to let your business be a hobby (if you want it to be)
35:10- Pricing for profit
36:20-Why Shanna prefers hourly pricing rates for creatives
38:30- Reclaiming your time as an entrepreneur
40:40- Defining the "done point" of your work + what's included and what's not
45:00- Setting up expectations with clients
51:00- Why Shanna encourages small business owners to take sabbaticals