If this is your first start-up, you may or may not know this one thing that people hardly talk about – and it’s a major trait in the health of your business.
You need to learn how to charge for services.
They say wisdom comes with age, but we believe wisdom comes with how we address our experiences. For instance, you can have a past filled with situations where your boundaries were tested, only to brush it under the rug or please those who you’re afraid to disagree with. Or you can have the same past, and slowly practice being sure of your word and who you are in a situation, only to grow and become more confident and self-assured.
One path leads to less self-esteem and courage, with the ego taking reign over the Self. The other path leads to intuitive decision-making that is defined by your values, which leads to courage to be yourself. Whichever direction you choose to practice, during each situation you’re challenged, will flourish. What will you choose?
Why the Home Care Industry Puts You at Risk for the Ego to Shine
As a home care agency owner, you already have the bells and whistles of a caring heart. We haven’t met one owner who doesn’t have a sentimental personality. They’re usually the type to wear their hearts on their sleeves. They come with a personal story so deeply rooted in love that they were moved to help other seniors in need. It’s beautiful and thank goodness they chose to start their legacy of in-home care.
However, with this emotional heart space, and compassionate trait, sometimes decisions can harm the business. We have only met two owners in the past 15 years who slightly sabotaged their own business, so it is not common by any means, but it’s worth mentioning. Let’s get into their stories.
The Owner Who Said “Yes” to Everyone
Here we have a classic story of a caregiver who opened her own agency. Deeply touched, she vowed to help as many seniors as possible and was prideful to be the lowest cost in her region. For the first three years in business, she said yes to everyone and at every facility. This got her agency known and really helped build her business. Once the three years passed, she found herself head-over-water with clients, needing to desperately hire, and didn’t have the profits to support the growth. Now she knows in order to reach her goal to help more people, as her compassionate heart is the root of her mission, she has to accommodate for a reasonable cost of services.
Many start-ups begin like this, with a need to fulfill their philanthropic agenda, by any means necessary. However, catch 22 is that to accomplish your goals, you will need adequate revenue. This is not to be confused with overcharging and scamming your clients. This is to get to the true cost of what it takes to serve others the best way possible.
The Owner Who Felt Ashamed to Charge
Take the person who really knows how to run a business, train his employees, and get to the bottom line. Everything was solid until his phone rang for service. When we had a catch-up call with him, asking him how he’s doing with new business, he said he has zero conversions and that no one is becoming a client with him. We dug deeper and he eventually admitted he had a very hard time charging people and instead encouraged them to call another agency. We reminded him that he had a big heart and was in the right kind of work, being so passionate about helping elderly people, but that he was hurting his business by turning people away. The truth is that potential clients call him for a reason. They found his information online and had interest in learning more. Essentially, they chose his agency for their senior. He said it was something he had thought about and really needed to work on.
We’re not so certain many start-up owners do this, per se, but we’re putting it out there because it could be common. It’s hard to be in the world of in-home care and not feel your heartstrings tugged. Absolutely it is difficult to charge a family who may be afraid or have suffering. That’s why we’re writing this blog.
Setting Boundaries with Yourself
Sometimes, the boundaries we need to set are with ourselves and not others. Our recommendation is to slowly practice being confident about your choice to charge at a rate that operates a healthy business. If you’re new to it, it won’t feel good at first. Eventually, and with “mistakes”, you’ll begin to build more competence in supporting your agency and what you have to offer.
If a business is considered a start-up for the first 3-5 years, try making this a long-term practice for the same 3-5 years. You don’t have to change overnight. Allow this to be a part of your evolution and study how it affects your business. Remember, there is no shame in equally exchanging the value you offer others for a price that keeps you in the field. If providing care is the path for you, you’ll learn all the strengths you need to work on in order to keep going on that path.
But don’t forget to pat yourself on the back. You’re doing the good work.