Quote:
Originally Posted by RedEvo
Realistic pricing is very important. I think many new businesses don't factor in the true cost of delivering their services. Then, when their savings run out their businesses go pop.
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Totally true RedEvo, one of the things I certainly have found the most problematic in new companies is under selling themselves, someone starting out on their own can easily make the mistake of believing they only need to take "x" per week to keep things a float, so they under price.
I think under pricing can take a year to catch up with a new enterprise and at first they do feel they are making great grounds, but reality ultimately hits.
If you are starting a new venture, it is worth taking the time to really cost out how much you need to charge and how much your overheads are going to be...be it from asking on this forum, or taking advise from an experienced business advisor. The figures may surprise you!