Your Small Business, Your Money and You

Coins in a Glass JarOne of the things I like to get into with my clients pretty quickly is how much money you need to make from your small business and how quickly. That way we can make a meaningful plan. So one of the first things I need to know is how much money do you need to make each month to pay your bills in the place in your life where you are right now. This is Goal One. This is quite distinct from how much money you would like to make in the future, that’s another goal for another day.

First off, you want to be in financial integrity, which means that you have enough money coming in each and every month without fail so you can relax. Doesn’t that sound nice? How far away from that are you right now? How does it feel to think about it? And do you have concerns about whether or not your business will take you there?

Try some small sums with me. First of all, know that figure, how much do you need to make every month without fail? Work it out if you don’t know. Go on… I’ll wait.

Then next let’s work out how you might achieve that. What does your business offer to clients and customers and how many of those do you have to sell each month/year to be in financial integrity? Does that feel do-able? If not, is there a better way? I might be able to scope that out with you.

Sometimes there’s a way of expressing this sum so it feels more doable to you. For instance, fewer than 100 clients a year in your £297 program. Or perhaps challenging yourself to sell a certain number of your products, depending on their price tag and your profit on each item.

What’s good about this approach is that you will know when you have achieved your goal, it’s measurable. If you are going after your first 100 clients or your first 100 sales, then you’ll know when the money is in the bank (ka-ching) and when you can celebrate because you have sufficient reserves to live on for a year or longer without worrying about lack of cash, which is so draining.

If you are not sure how to do these sums for your own business or you would like me to take a look at them with you and find the easiest, shortest route to financial integrity for you, then simply book yourself in for one of my free Entrepreneur of the Day calls and I shall get my calculator out.

Terrified of talking and thinking about money? Don’t worry, I shall ask you only a couple of questions – tell me about you and about your business, for starters – and that all important one which I must leave you to work out for yourself… how much do you need to earn each month to be in financial integrity? Bring the answer to that Q with you; round thousands will do, but no kidding yourself please.

Let's Talk...

...about your business or plans to start one. Book yourself in to my online diary now for an Entrepreneur of the Day call. These are entirely free of charge and with no strings attached. My goal is to get to know you, offer you a great listening to and provide some guidance, clarity and inspiration.

6 Responses to “Your Small Business, Your Money and You”

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  1. Judith Morgan says:

    That’s in, in a nutshell. Thanks, Vinod.

  2. Judith Morgan says:

    We’ll take your pat on the back, Francene. Thanks! x

  3. Judith Morgan says:

    Thanks for stopping by and commenting, Meredith.

  4. Meredith Eisenberg says:

    Knowing your numbers is so important in any business – and that means tracking what is going on at each stage of your business system. You need to to be able to determine how many web page visits = how many of those sign up for your free offer = how many of those go on to buy your $297 program. That way you can then work that back to the beginning to make sure you are getting enough visitors to your website, enough opt-ins and so on. Having a lead scoring system to show who are your best prospects helps as well – that’s what my platform, the Magic Marketing Machine does. Whatever tools you use, you need to be tracking the numbers.

  5. I admire anyone who can earn enough from a small business to get by and pay their expenses. The best of luck to everyone.

  6. So true Judith.. most small businesses need to focus on this point initially.. of making enough to sustain themselves. Of course the big plans should be there, but plans cannot workout if they can’t keep the business running.

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