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Know Your Worth

Know Your Worth

Knowing your value is critical for your business’ success

 

There are so many articles out there that tell solopreneurs, freelancers and other entrepreneurs on how to price their products or services.  The best course of action, is to first think about what type of lifestyle you want your business to provide for you and your family. Then, you can actually quantify how your products and/or services should be priced accordingly.

 

Opportunity cost and your magic number

 

What is the opportunity cost of being an entrepreneur or small business owner?  Opportunity cost is a benefit missed when an investor, individual or business chooses one alternative over another.  Simply put, what do you need to make annually to make the cost of leaving your job worthwhile? How much money (after taxes and expenses) do you want to make annually? What does that mean you have to make monthly?  Weekly? Take the time to reflect and provide an honest answer to this question. For some of us, the business is solely designed to replace the opportunity cost of our salary earned prior to leaving our job to start our own business, and that’s okay.  For others, their entrepreneurial goals are to provide for their family for generations to come.

 

I know my magic number, now what?

 

So, now that you’ve figured out your opportunity cost and know your magic number to make small business ownership or entrepreneurship worthwhile, are your services priced accordingly? Since annual targets are hard to focus on, I recommend breaking it down further to monthly targets.  If you offer a premium service, are they at a premium price? If you offer premium services, but it takes 100 people or more to equal your monthly target, you are undervaluing your services.

 

Let’s say you are priced at the top of your particular industry and you are still not meeting your monthly target.  Then it may be a perfect opportunity to add to your product or service lines. Figure out how this additional service can help you reach your monthly targets and then price accordingly.

 

Next Steps

 

We took a simplified approach to pricing to drive a particular point home.  There is so much more that goes into pricing your products and/or services. This is a good start for you to delve deeper into how your products and/or services can help you reach your monthly and annual targets.  Veteran Wealth Partners is a veteran-owned company and is proud to be the go-to resource for veteran-owned small businesses and entrepreneurs. If you’re stuck on how to get your business to the next level, Veteran Wealth Partners are experts at growing businesses serious about building wealth so that they can leave a legacy.

Veteran Wealth Partners © 2018 All Rights Reserved

Insurance Products Offered through M&O Marketing and Crump Life Insurance.

The information on this site is for information purposes only and is not intended to provide tax, legal or investment advice. You should not rely on any material contained in the website and/or reports and should consult a licensed professional or seek independent advice prior to making a decision. The information does not constitute a solicitation. The information provided herein may be displayed and printed for your personal, non-commercial use only. You may not reproduce, retransmit, distribute, disseminate, sell, publish, broadcast or circulate the information to anyone, without the express written consent of Veteran Wealth Partners.

Veteran Wealth Partners, its affiliated companies, and their representatives do not give legal, tax, or Social Security advice. Producers and their clients are encouraged to consult a tax advisor, attorney, or the Social Security Administration via their local office or online at www.ssa.gov

Veteran Wealth Partners All Rights Reserved 2018

A Veteran Owned Business

Site designed by TC Creatives

How Small Businesses Can Proactively Combat Cyber Lawsuits

How Small Businesses Can Proactively Combat Cyber Lawsuits

Cyber attacks on small companies are soaring, and businesses that have a data breach can face steep fines or lawsuits.  If you are a hair salon or landscape artist, it is laughable and completely unrealistic to expect your business to have the same level of sophisticated cyber security defenses as Microsoft or Cisco.  And yet, small businesses are forced to pay the same fines as big businesses, sometimes as high as $2500.00 per client data breach.

So now, businesses such as the hair salon or landscaping need to become experts in data security?  These fines are too large for small businesses to handle. What’s even more concerning, is that some states levy hefty fines on small businesses for breaches although there is no fault on the part of the business.

 

The Law

There are state notification laws that inform consumers about data breaches as well as potential problems that may arise from those breaches.  These notifications provide that if the consumer sues the company and wins, they get their attorney’s fees reimbursed from the business owner.

In addition to the fines by the state, business owners also have to deal with potential legal fees for both themselves and the folks that are suing them.  That can become quite a significant amount of money and extremely detrimental to the owner’s bottom line.

Then some court cases have required businesses to provide customers with an identity-theft protection service [which monitors consumers’ credit records and alerts them of activity using their personal information, at $25 to $60 per customer].

 

Things Can Change

Researchers Ms. Selznick and Dr. Lamacchia from Bloomsburg University of Pennsylvania made their case recently in the Journal of Business & Technology Law.   They argue, lawmakers should find a way to protect smaller companies from devastating penalties.

They suggest that small businesses obtain cybersecurity services from their information-technology vendors, so they get the advantage of the abilities of the vendor. A vendor could say, “If you use our application, we’ll give you cybersecurity protection.” It would be a market-driven solution.

 

Protect Your Business

In the meantime, how can businesses protect themselves from taking a significant financial hit from potential cyber lawsuits?  Businesses and Entrepreneurs should consult with a financial advisor that specializes in supporting them like Veteran Wealth Partners.  

This is one of many situations where the Wealth Protection Plan from Veteran Wealth Partners can help business owners and entrepreneurs mitigate exposure to potential lawsuits and protect their assets.

 

*Source: The Case for Protecting Small Firms From Cyber Lawsuits | Wall Street Journal

Veteran Wealth Partners © 2018 All Rights Reserved

Insurance Products Offered through M&O Marketing and Crump Life Insurance.

The information on this site is for information purposes only and is not intended to provide tax, legal or investment advice. You should not rely on any material contained in the website and/or reports and should consult a licensed professional or seek independent advice prior to making a decision. The information does not constitute a solicitation. The information provided herein may be displayed and printed for your personal, non-commercial use only. You may not reproduce, retransmit, distribute, disseminate, sell, publish, broadcast or circulate the information to anyone, without the express written consent of Veteran Wealth Partners.

Veteran Wealth Partners, its affiliated companies, and their representatives do not give legal, tax, or Social Security advice. Producers and their clients are encouraged to consult a tax advisor, attorney, or the Social Security Administration via their local office or online at www.ssa.gov

Veteran Wealth Partners All Rights Reserved 2018

A Veteran Owned Business

Site designed by TC Creatives