A scarcity mindset, as the name implies, is commonly known as one where the holder perceives the world around them as generally lacking and in short supply of what they think they need to survive and prosper; in other words, there are not enough resources to go around.
In freelancing, this often shows up as money worries and always being on the constant lookout for new clients and alert to opportunities, fearing that there are not enough for everyone or that their current situation could change at any moment for the worse.
It’s the opposite of an abundance mindset and, if not re-framed, may cause havoc for your business and curtail your overall enjoyment of life.
Here are 3 ways it might be showing up in your freelance business and what you can do about it.
1. Working all the hours
If you find yourself constantly working around the clock and work is taking up the majority of your valuable downtime, such as seriously seeping into your weekend or vacation time, then this could very well be a sign of a scarcity mindset.
Of course, running your own business will sometimes require extra effort and hours, especially at the beginning, but this shouldn’t be a constant. You must allow yourself adequate time to rest and recover to avoid burnout. A well-rested freelancer who has taken time out at the weekend to relax and revitalize their energy is often much more productive, clear-headed and ready to go come Monday morning than one who has been burning the midnight oil all weekend.
It could be that you haven’t set adequate client boundaries, so clients contact you at any time of the day or night expecting you to drop everything and work on their projects at the expense of others, or you simply aren’t attracting the right clients for you so everything seems like an uphill battle, adding more to the feeling of scarcity.
Take time to review these areas so you don’t feel like you’re always in panic mode or feel an underlying buzz of anxiety throughout your day. Setting boundaries, attracting the right clients and saying “No” to unsuitable ones can transform your business (and mindset) for the better.
2. Working for free/at a discount
In some circumstances, working in exchange for a tangible benefit other than money can be a viable option.
For example, exchanging your services with another service professional so you both benefit (a copywriter could exchange services with a web designer – the copywriter gets website design in exchange for providing copy to the web designer). Another scenario might be when starting out, and you haven’t got a portfolio or any social proof, doing a small bit of work for free in exchange for a client testimonial.
However, most freelancers would agree that, in most cases, it’s probably not advisable to work for free.
This is especially true if you are promised more work ‘down the line’ by a new prospect you don’t have a history with in exchange for free or low-paid work.
Offering discounts to loyal and long-term clients can be a great way to boost client relationships (and a feature that can easily be added to invoices with Invoice Ninja, a free leading invoicing software designed specifically for freelancers and small businesses).
However, offering discounts just because you think it will win you a new client is something to be careful about. It might indicate that the client is coming from a place of scarcity themselves and may expect more of the same going forward, especially if you haven’t adequately set boundaries as per point 1.
Knowing your worth and charging accordingly can keep the scarcity mindset (and scarcity clients) at bay.
One way to ensure you are getting paid for all the time spent is to track your billable hours so you know how long you’ve worked on a project and can invoice accurately.
With Invoice Ninja, you can record every second spent on each individual task and quickly transfer timed data to the relevant invoice with just 1-click.
We even have a handy Google Chrome extension so you can log and manage all your tasks within Invoice Ninja.
Try Invoice Ninja for free here.
3. Not asking for what you want
The fear of rejection is real.
This can show up when it comes to increasing your rates, pitching for a new project or some other client request. But a fear of rejection shouldn’t stop you from doing any of these things. It’s natural to feel uneasy when venturing outside of your comfort zone, but this is where the growth happens. This is how we progress.
For example, you might be concerned that asking for a valid increase could result in the client no longer hiring you and the belief that there are not enough clients to go around, so it’s best not to ‘rock the boat’. However, inflation, the cost of living, changes in the market, and more all have an impact on what and how you charge, so if they increase while your prices remain the same, then you aren’t growing but stagnating.
Staying in a position we are unhappy with and doesn’t serve us due to the fear of rejection stops us from our true growth and potential and the better outcomes we could achieve. A quick re-frame is to remind yourself of all the wonderful possibilities that lie on the other side of fear, let it go, and keep on moving forward.
The same goes for other areas of your business, such as cold outreach or getting on sales calls; if you’re not doing enough (or any at all) because of your fear of rejection, just remember the wise saying: You miss 100% of the shots you don’t take.
Once you break through this barrier, learn to deal with the possibility of rejection, and keep striving forward, you’ll soon realize that there is an abundance of potential clients and options open to you.
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An abundance mindset is an essential tool in your freelancer arsenal. Having a strong, positive mindset is key to freelancer resiliency, which will help you grow and plan accordingly.
Once you let go of scarcity, you will perceive the world very differently, which in turn will improve your confidence and help you say goodbye to freelancer comparisonitis.
All upsides that will help your freelancer business flourish and lead to a more joyful and abundant life.
