Do you set goals when it comes to money?
Goal setting isn’t a new concept. You’ll most often see it in the health/life coaching space, particularly when it comes to the end of the year and everyone’s looking for the “New Year, New You”. This can be when the good ol’ new year’s resolution can get mistaken for a goal. Totally not the same thing.
Goals are specific. They are measurable, achievable, realistic and timely. S.M.A.R.T.
And that’s what we want when it comes to setting goals for our money. We want to be smart.
So let’s take a look at a few of the things that are going to help you develop some SMART goals for your business.
How much money do I need PERSONALLY
Yep, we’re going to start our business goal setting by looking at our personal finances. That’s because when you’re an entrepreneur, particularly a solo-prenuer in the first few years of business, our personal money is inextricably linked to our business money. Most of the time we have gone into business to fund our life.
So, what are all your “must-have” personal needs and expenses. Get real on #allthethings - mortgage, rates, insurance, utilities, school fees etc. And then add a little bit of fat.
What would I like in an “ideal world”?
We need to have dreams, and if we only focus on what we “need” then that’s exactly all we’re going to get.
It’s time to get creative and tap into that vision. Put a $$ figure on it and write it down. We will revisit “realistic” later.
These two questions provide you with a rough salary goal that you want from your business.
What are your Business needs and expenses?
Your business needs are those that you require in order for your business to function. Bare minimum. Your expenses may be slightly more outside this box, commitments that are “nice-to-haves” and make your life easier. Put down everything you currently spend and you can review a bit later to find the grass amongst the weeds.
This is also where we put our salary goal - how much you want the business to pay you to cover all your personal money goals.
What do I need to spend to achieve my business goals?
This question assumes you have done your operational goal-setting for your business and you know which direction you want to head. You may want to increase exposure and so more marketing money is required, photo-shoots, updated website, outsourcing…..the list can go on. Again, be realistic here. Tap into what you feel you can actually achieve.
Now that you have some bones to work with for expenses, you can begin to work out the income you need to achieve these amounts.
Remember - goal-setting isn’t an exact science. There’s an element of wants, needs and expectations. The idea here is to start thinking about the things that go into setting your money goals, get you really looking at the money you require, and the money you can bring in. Once you have something on paper, you can start to look at whether your goals are SMART. Then refine until they are.
To help you start this process, grab this Money Goals Workbook. It will take you through the above questions, plus the ones you need to ask yourself on the income side.
Ready for that next step and need help getting set-up?
I can help you sort out your financial foundations and get you started with some solid systems for your business, plus I’m able to provide you with a discount on a Quickbooks subscription, saving you money every month.
Or maybe you're ready to begin implementing Profit First in your biz.
Book a call and we can have a chat about how I can help.