Money equals business. You got started in business because you wanted to make a profit. Yet money is not just business; it’s emotional too. Money can cause disagreements, make us feel amazing, or frustrated. So what’s a practical way to view money in your business?
In this episode, you’ll learn how to set real, practical, and beneficial financial goals for your business. We’ll look at how else business success can be defined, and the one question I answered that changed my life.
Success in Business Doesn’t Always Look Like Revenue
“As a business owner, money is messy.”
Let’s break down a practical approach to set realistic financial goals. For so many of us, we’ve heard that business success looks like making $100k in our first year so we feel frustrated when we don’t hit this magic number.
“How do you measure success in your business?”
True business success can be measured in several different ways:
- Amount of impact you want to have
- Time freedom
- Ability to volunteer or give back
- Take-home pay
My Financial Goal Journey
In my first two years as an entrepreneur, success to me looked like profit and time freedom. These past two years, I’ve reframed success to look like profits and impact. I want to help equip, empower, and mentor women to be successful with the skills they already have.
However, in my first two years, I was only striving to reach $100k in revenue. Because of this drive, I lost out on family dinners, time with my kids, date nights, health, and happiness. I thought the magic number of $100k would do it for me.
There is no magic number in revenue. The only magic is in how you define success.The more profit, the more we save, share, and invest. Revenue can’t do any of that.Click To Tweet
“The most impactful number we need to feel success is profit; what you actually take home and contribute to your family.”
Three Steps to Help You Define Your Financial Goals
- Start by understanding what the business’s contribution to your personal or household finances should be.
- Set your real business goals by using the Good-Better-Best framework.
- Update your business plan.
But let’s say that you’re not meeting your Good goal. You can correct it in three ways:
- launching a new product/service or a current product/service more often,
- increase your pricing, and
- find efficiencies to minimize expenses.
Real Talk about Financial Goals
In my first two years of business, I worked hard but wasn’t living the legacy kind of life I hoped for. Then my husband and I sat down and talked about the question that changed my life:
“What monetarily do I need to bring home?”
This one question reframed how I organized my days, my offers, and my pricing. I encourage you to ask yourself if you are in alignment with what you need to bring home as well?
Weekly Ops Activity
Determine your Good-Better-Best Goals
Join the Ops Insiders Facebook Community:
Other Ways to Connect with Me: