Are you falling short of your financial goals?

So the first thing is…are you setting financial goals in your business?

Financial goals can be daunting ­ especially if you feel you might not be a numbers person. But financial goals can really help you know if you are on target with your other business goals, and ultimately your life goals.

Most of us in business need our businesses to generate money, ultimately, so that we can live the life we want to live and contribute to our family.

The best way that we can do that is by setting financial goals…so how do we do that?

Firstly we need to look at our life goals…

What do you want to achieve in your life, and by when? Do you want to be able to send your children to dance classes? Or to move house? How much do you need to be able to do the things you want in life? And by when do you want to do those things in your life goals? Put dates and amounts against each life goal you have.

Then is it you that will need to find all the money to hit those goals or do you have other sources of household income? So how much do you (or more specifically, your business) need to contribute to each of the life goals?

So this then gives us the minimum financial goals for our business ­ how much we need to get out, and by when.

Work backwards

Once we know this number we can then work backwards towards what our businesses income needs to be, what the sales need to be.

We go from what we need to take out, and take into account the businesses expenses ­ to get back to the sales value needed (remember to account for any VAT, sales tax or corporate taxes).

From the £/$ amount of sales we now have ­ we can then work out what that means for your business in terms of the number of customers/clients that you need to hit that £/$ number.

Tracking

Now we can track that goal amount both in terms of money in as well as the number of customers/clients.

Depending on your business it will be worth monitoring these amounts either weekly or monthly. And you can do that in a simple excel spreadsheet or even with pen and paper ­ the tracking of your financial goals does not need to be complicated or fancy.

Accountability

Without accountability, it can be really hard to hit any goals in our business. Hold yourself accountable to those goals or team up with an accountability partner to keep you on track. If you struggle to hold yourself accountable, or are looking for an accountability partner, then it might be worth checking out my Passion 2 Profits University which can really help with accountability and

Hold yourself accountable to those goals or team up with an accountability partner to keep you on track. If you struggle to hold yourself accountable, or are looking for an accountability partner, then it might be worth checking out my Passion 2 Profits University which can really help with accountability and

If you struggle to hold yourself accountable, or are looking for an accountability partner, then it might be worth checking out my Passion 2 Profits University which can really help with accountability and reach your financial goals ­ CLICK HERE 

Action points

1. What are your life goals, how much do they cost, and when do you want to achieve them by?

2. So how much does your business need to contribute towards those life goals?

3. Work backwards to how much in sales does your business need to make? And how many customers/clients do you need to serve?

4. Keep track ­ write it down ­ hold yourself accountable to that goal amount so you can live the life you want to live.

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