Common Mistakes for New EntrepreneursUzorak

Common Mistakes for New Entrepreneurs: Part V

A new entrepreneur I recently coached reminded me of several common mistakes that new business owners can sometimes make. Failing to realize the impact of taxes on a small business, inadequate bookkeeping, the lack of a clear purpose, and inconsistent messaging are all included in this list. The fifth mistake I’ve encountered is poor pricing practices.

Recently, a young web developer was hiring someone to help him. This entrepreneur’s billing rate was only $23 per hour, and he was going to pay this new employee $15. I realized my friend had a problem. 

After taxes, benefits, and management time, this young man would lose money. It’s often difficult for new entrepreneurs to establish an hourly rate that adequately pays them for their value.

1 Timothy 5:18 teaches, "Do not muzzle an ox while it is treading out the grain. The worker deserves his wages."

When possible, establish pricing based on the value you bring rather than the hours you worked.

Questions for Reflection:  

• Why is it hard for some new entrepreneurs to pay themselves fairly?   
• What are some ways a new entrepreneur can ensure he or she is receiving a fair wage?   
• Are you sometimes tempted to cut your own pay to invest it elsewhere? Is that a Godly approach according to 1 Timothy?

Heavenly Father, Thank you for your wisdom and your sovereignty over my small business. I confess there are times when I want to do things myself and run my business my own way based on my own strength and knowledge. Forgive me for those times. Please continue to guide and direct me and help me seek wisdom and understanding through those you place in my path. Thank you for giving my business a purpose that outweighs profits. In Your Son’s name I pray. Amen.

Are you a new entrepreneur looking for sage business advice based on Biblical wisdom? Unconventional Business Network invites you to take part in a business leader group! Consider joining a forum designed specifically for small business leaders, regardless of role, or a roundtable targeted toward small business owners, partners, and CEOs. Groups meet monthly with virtual and in-person options available. To find out more about forums, click HERE. To find out more about roundtables, click HERE.