Financial literacy, not gut feelings, key to female founders scaling past the $1m mark | Dynamic Business

COMMON PAIN POINT: PRICING STRATEGY

Asked to name an aspect of business female founders commonly struggle with when they seek to scale, Titman said their pricing strategy: “It’s important for founders to accurately value their time, especially if their business is serviced-based, and price it correctly in their business model. If they’re basing their pricing on what their competitors are charging, that’s not necessarily the right approach.

“Pricing strategy is all about gathering data and working out the true cost of delivering your product or service,” she said. “Understanding how much time it is really taking and valuing that time is critical. My advice is to use technology to track everything you’re doing from admin and research, to client liaison and actual delivery. This should always form part of the pricing structure and many women are surprised at how much time they invest behind the scenes. I also recommend restructuring your Profit and Loss statement so that these activities are not hidden in the expenses. Changing the way you track your time and finances can provide a clearer indication of what your pricing should be.”

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Financial literacy, not gut feelings, key to female founders scaling past the $1m mark | Dynamic Business – Small Business Advice – Forums | Dynamic Business Australia.