Have you got a financial goal for your business? Not just a vague idea of how much you want to get this year, but a real, tangible goal, written down.
In my experience of working with Business Owners for over nine years, very rarely do they have a written financial goal.
Typically when I ask business owners about their financial targets, they say they “want to make a bit more than last year” or “enough to cover my costs and some play money”. Or they squirm, look away and change the subject!
Does this sound familiar? Are you squirming away from facing your financial goals for your business?
This response to such a simple question isn’t going to cut it if you want to control the future of your business and realize the potential of it, and you.
But why the resistance? Why will we happily talk about other aspects of our businesses but neglect the commercial side of it. From my experience working with women business owners, there seems to be some common themes emerging. These include but are not limited to:
- It’s not appropriate to discuss money or the financial side of my business
- Wanting to make more money is selfish, greedy. Somehow it is seen as a ‘bad’ thing
- If you focus on the money side of the business, you will lose that heart centred place of why you started the business in the first place (especially if you are a coach, well being therapist etc)
- If I want to make more money, that will mean I’ll be busier and I’m already finding it hard to cope
- If I set a financial goal, I’ll be very disappointed when I don’t meet it
- Frankly, the less I know about my money, the less I will worry about it (I call this the Scarlett O’Hara approach to managing finances)
These are all very valid reasons but honestly – they are just thoughts. Thoughts that are harming your business, holding you back from realising your true potential and more importantly, limiting the number of customers you will reach with your fantastic products and services.
It’s time for a change!
Time to shift your mindset about making money from your business. Time to start moving it from an expensive hobby to a profitable, vibrant commercial enterprise!
The first place to start is with your thoughts….yes, let’s look at how you can change your mindset.
Step 1: Imagine….
Take a moment and think what would 50% more profit in a year give you?
What would you do with the extra income?
- Would you invest more in your business for future growth?
- Take on that additional pair of hands you need at busy periods so you can get your life back?
- Give more to your favourite charity?
- Go on that dream holiday you have been promising yourself for a long time?
- Buy a new computer, printer or ipad for your business?
- Update your logo and branding?
Extra income is a great thing – you can help others, help your business and most importantly nurture yourself by taking the time out or getting more assistance.
Hopefully now you have a more positive mindset towards growing your business financially. Now let’s give you some easy ways to focus on your financial goals. And I know from my own experience, what we focus on expands.
Step 2: Create The Financial Goal for Your Business
If you haven’t already got one, create it now!
How much revenue to you want your business to generate by July 2012?
(Your 12 month revenue figure)
Do you want a 20% increase or will you be bold and double what you made last year?
I know from working with people that sometimes a goal has to be that audacious so it mobilises people to act and make the changes necessary to achieve it.
Step 3: Break it Down to Monthly Targets
Simply take your annual figure and divide it by 12…..this is a very simple approach that doesn’t allow for seasonality, but will do for the purpose of this exercise which is to get you into action!
Step 4: Track Your Revenue Every Day
Write down every day how much money you have earnt that day for the business. Then add up the daily totals at the end of each month and compare it to your target.
I attribute this single daily action with increasing my own business revenue by 50% in one year. It made me look every day at my actual versus my goal and then I acted accordingly.
Embracing your business finances is the best way to grow them. Stop ignoring them, hoping they will get better by themselves- give them a little time and attention and watch them flourish!
Wendy Kerr is an expert in Corporate Crossovers – those women who have left corporate careers to start their own businesses. Her company, Business Momentum offers coaching, mentoring and resources to enable these women to thrive in their businesses and their lives. For more information, and your free guide on “Stepping Up to 100,000 – The Truth Behind a 6-Figure Business”, visit http://www.business-momentum.com