Money plus mindset equals financial success! We’re chatting on the Fab Fempreneurs Podcast Show with wealth and mindset coach, Tess Wicks, about how and why to set specific, purposeful revenue goals. As a business owner, it is super important to know how much money you are making and where that money is going. Tess Wicks is a Wealth and Mindset Coach for Online Coaches and Service-Based Entrepreneurs. She's worked with individuals to help them master their cash flow for the past 4 years and fully understands the struggles and limitations of being a business owner and having the responsibility of both the business's finances and your own. What is considered a successful business owner has changed: you don’t have to have a 6 figure business in order to be successful. Being clear on your numbers is the first step in financial success.
Takeaways
1. Journal out your ideal day
Become clear on what you want in your personal life and not letting vanity numbers guide you. Weave in all your needs (e.g., putting money away for taxes) into your money goals. Identify your personal expenses- which are necessary and which are “on pause” right now by monthly, semi-annual and annual needs list. A common example of something you can pause if you are struggling with money, or wanting to simplify, is as simple as canceling a TV subscription or any subscription that processes automatically that you may not even use.
2. Identify all the outflows in your business - annually!
Identify your needs and what you want. For business, maybe you want to invest in content creation or hire an assistant. Create two purpose-driven goals for the needs and wants in your business.
3. Do the Easy Profit Math, to calculate your purpose-driven revenue goals, while accounting for the 4 Financial Elements of a Business (including profit!)
How does it break down: your salary (what you pay yourself), business costs, profit and taxes. Where does the money go in order to have a business. What percentage of dollars you make are you going to put aside for taxes (talk to a CPA). Think 15%-20%, this a percentage of revenue not profit. Be proactive and set money aside. And if you have money left over, save it or splurge and go on a vacation! You also want to have money aside for an emergency fund or “rainy day account”, not only for your personal expenses, but for your business. Have money as a backup to supplement your income if you are going through a hard time.
4. Use your purposeful revenue goal to inform your business decisions: pricing, launch strategy, etc.
When pricing your services, think about your revenue goals. If you know how much you want to make, this is how much you should charge. Your pricing should go into how much it costs to run the product or service.
