More self-esteem but less profit

**somethingcreative** · 03-29-2011 03:48 PM

I forgot who told me this, but someone has told me that I needed to increase my self-wroth/self-esteem in order to make more money. But here's what happend to me recently and I could use some advice. Thanks in advance.

I really believe that my profit actually went down as my self esteem increased. Here's what happened: I started a new business; I greatly exceeded my quota the first month, and my self-esteem increased dramatically. However, after my self-esteem increased, I decided to implement the following changes out of the simple desire to have a better quality of life (I felt that it was out of self-respect), that was when my profit immediately dropped by 75% (no kidding).

a) I got rid of that 20% of the customers that was causing me 80% of the problems.
b) I raised my rate.
c) I was no longer desperate to close deals.
d) I became a lot less willing to negotiate.
e) I was no longer willing to work ridiculously long hours.

I am simply trying to have more work-life balance, and to treat myself with more respect, but I didn't think my profit would drop like this. What should I do?

**Gary Barzel** · 03-30-2011 03:39 PM

From what it seems like it's not the fact that your self esteem increased that's the reason why your business dropped. You mentioned that after the first month when you were doing fairly well you decided to implement some changes. You have to remember that if you are in the early stages of your business that means you don't have clients that know you well and trust you and your service. If after only a short amount of time you raised prices, got rid of 20% of the customers, and dropped your overall intensity in building up your business, how do you think that looks to your remaining customers? You have to first establish yourself as a trusted name in your field, and after an extended period of time when your customers know you, and they know your a trusted name in business that delivers a good product, only then can you start implementing such drastic changes.

Remember your customers are your most valued PR, strive to keep them happy especially in the beginning, even though it can be extremely difficult with some customers, and you will reap the benefits later on.

Best of luck!