How Money Mindset Influences Our Sales

We start our businesses for different reasons, but for all of us creating income, making sales and building a financially successful enterprise is on the top of our lists. This is why understanding money mindset - the way we think about and handle money - is a big part of our overall approach to sales. 

Let’s look at the concept of money psychology and its profound impact on our sales strategies. Whether you're a seasoned business owner or a brand new entrepreneur, recognizing your own money mindset - and the blocks you may be facing - can truly help you uplevel in business and reach those goals!  

The Psychology of Money 

Money psychology looks at the emotional and psychological parts of our relationship with money and finances. 

That relationship, no matter how healthy or otherwise, influences how we save, spend, and manage our finances in both our personal and professional lives. 

Our relationship with money has been shaped since we were young and reinforced through exposure, experience, and cultural influence. And all of this can profoundly affect our behaviors as adults, particularly in business.

For our purposes, let's look a these types of money mindsets...

4 Types of Money Mindsets

1. Scarcity Mindset:
   Those of us with a scarcity mindset often see money as a limited resource and always hard to come by. This can lead to increased stress about financial decisions, a tendency to cut costs relentlessly, or hoard our resources.

2. Abundance Mindset:
   Having an abundance mindset means you believe that there is always enough money to go around and that more can be created at any time. This outlook fosters greater generosity, a willingness to invest, and a proactive approach to financial growth.

3. Avoidance Mindset:
   Some people prefer to avoid dealing with money altogether, often out of fear or discomfort. This can manifest in a neglect of your financial planning or an unwillingness to engage with the financial aspects of running a business.

4. Vigilance Mindset:
   Individuals who are extremely vigilant about their finances may obsess over budgeting and financial security. While this can lead to sound financial management, it may also result in missed opportunities due to being overly cautious. 

Understanding the mindset you’re in around money and finances can give you a good starting point for any work you may need to do.

It’s so helpful for entrepreneurs to recognize and understand their attitudes towards money and how these beliefs might be influencing their business strategies and decisions.

The Impact of Money Mindset on Your Sales Strategy

The mindset you have around money can deeply impact and shape your approach to sales, affecting everything from pricing strategies to customer interactions. 

Here’s how different mindsets can influence your sales approach:

Scarcity vs. Abundance

Entrepreneurs with a scarcity mindset might set prices lower in an attempt to attract more customers or use high-pressure sales strategies out of fear of losing a sale. 

This approach can easily deter potential clients who perceive lower prices as indicative of lower quality.

On the other hand, those with an abundance mindset tend to price their services confidently, reflecting the value they provide. 

They approach sales with the belief that there are plenty of leads and prospective customers out there and they don’t make decisions out of fear and uncertainty. This attitude creates a much more relaxed and authentic interaction that attracts clients who value quality and are willing to pay for it.

Risk Tolerance

• Your comfort level with risk is directly tied to your money mindset. Those comfortable with risk (often aligned with an abundance mindset) are more likely to experiment with innovative pricing models, enter new markets, and invest in new marketing strategies.

• Individuals with lower risk tolerance (often found in those with a scarcity or vigilance mindset) might stick to traditional, tried-and-tested methods, potentially missing out on growth opportunities but also avoiding possible financial pitfalls.

Identifying Your Money Mindset

Now that you understand the different mindsets around money and finances, let’s take a minute to identify where on the spectrum you land. 

Having an awareness and understanding of your own money mindset can bring a lot of clarity and insight into the reasons why you tend to make the financial decision you do.

Let’s look at it…

Self-Assessment Techniques

1. Think about your reactions to financial ups and downs:
   How do you respond to unexpected financial gains or losses? Your reactions can provide insights into your deep-seated beliefs about money.

2. Dig into your financial habits:
   Do you find yourself scrimping even when your business is financially stable? Or are you comfortable investing in growth opportunities? Your habits are a window into your money mindset.

3. Review past financial decisions:
   Look back at significant financial decisions in your business. Were they driven by fear, confidence, avoidance, or diligence? Understanding this can help pinpoint your dominant money mindset.

Impact on Business

• Decision-Making:
  Your money mindset affects everything from daily operations to long-term strategic planning. For instance, a scarcity mindset might make you overly cautious about new investments.

• Risk Management:
  Identifying your mindset can help you plan risk management strategies that are neither too aggressive nor too conservative but are right for your business’s growth.

Shifting Your Money Mindset

If you’re realizing that your current money mindset may be impacting your business's potential, consider how you can begin to shift to a more empowered and supportive frame of mind.

Techniques for Mindset Shift

• Awareness & Education
  Understanding financial principles can take the guesswork out of money matters and lessen any fears that contribute to a scarcity mindset.

• Mindfulness Practice:
  A mindfulness practice can help you manage anxiety about finances while also working through any deeper feelings and blocks around money.

• Exposure to Success Stories:
  Learning how others have successfully navigated similar money mindset challenges can inspire and motivate changes in your own life.

Practicing New Mindsets

• Experiment with Pricing:
  If you’ve always been conservative with your pricing, test a higher price point for a new service or product, even if it feels a bit scary.

• Invest in Growth:
  Allocate some of your profits solely for investments in areas of your business where you’ve held back. Maybe there’s a new technology you’ve wanted to try or you’ve thought about hiring a VA. Whatever you decide to put that money toward, make sure it’s a benefit to your overall business. 

Money Mindset & Your Sales

Once you understand how your attitude and mindset around money impacts your business, you start to see how connected it all is to the overall  marketing and sales of  your products and services. 

So take some time and ask yourself: How has your mindset impacted your sales?

If you can uncover where your mindset is negatively impacting your sales, you can start to work toward a more supportive and financially successful mindset! 

And the only way to start shifting your mindset is by taking steps, no matter how small, toward this new thinking.

Small steps will eventually lead to increased confidence and from there great business growth! Your business's future and financial success is within your control! 

At Automation On A Mission, we understand the ins and outs of running your own business - because we are entrepreneurs too! 

If you’re ready to start creating the systems, automations and marketing that take your business to the next level, reach out and let’s chat! We’re here to help!