Define your product or service and set your prices

You need to nail exactly what you're selling, to whom, and for how much. Clear offerings and prices built on real costs are what make the business actually profitable — not just busy.

Do this

  1. Spell out your product or service line and which customer segments each serves.
  2. Work out what it costs you to deliver one unit or job.
  3. Set prices = cost + the margin you need, then check them against competitors.
  4. Decide how customers will access it (where and how you deliver).

Pricing Starting Point

Price = Cost to Deliver + Your Margin

1. Cost to deliver one unit/job: materials + your time + direct costs 2. Add a margin (often 30-50% over cost to start) 3. Sanity-check against what competitors charge

Then tailor offerings to your segments — different customers may need different packages, prices, or delivery. Price with intent, not by guess.

More lessons on money

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  • Build simple financial projections: Financial projections are your best estimate of revenue, costs, and profit for the first year or two. They prove the business can make…
  • Get your federal and state tax IDs: Before you can hire, open a business bank account, or file taxes, you need the right ID numbers. The big one — a federal EIN — is free and…
  • Open your business bank account: Open a business bank account on day one, before the money starts moving. It keeps business and personal finances separate — which makes…
  • Get the right business insurance: The right insurance protects everything you're building from a single bad day. Some coverage is legally required (like workers' comp once…
  • Register your Louisiana business with the state: In Louisiana, you make your business official through the Secretary of State — most of it online via geauxBIZ. Registering correctly is the…

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