As entrepreneurs we love to think big and dream even bigger. The sky is the limit right? However, when it comes to your financial goals, they need to be both realistic and attainable. If not, you may find that a few weeks into the financial year you have lost your momentum and motivation because you are quickly falling way behind your financial goals.
In order to stay focussed and on track, you need to set better financial goals for your business.
Be clear with your figures
When you are writing down your goals, be clear with your expectations. Don’t just mention business growth, give specific figures. Same with the debt you owe, acknowledge it all. Put everything down on paper so you can physically see the direction you are heading and can be held accountable at various steps along the way.
Acknowledge increase in debt to coincide with growth
With increased growth comes increased expenses, therefore don’t forget to note them down. For most businesses, you cannot expect your costs to stay the same if you are working at twice the level you are now; something has to change. How are you planning on growing your business? Are there extra dollars required for marketing? Are there increased outsourcing costs?
It’s not all about the numbers
Sometimes it may not be about the numbers at all – maybe you want to work less, or move into a more rewarding avenue of your business. If this is the case then planning growth while you are downscaling or switching gears may not be realistic at all.
Reduce Your Expenses
If you find that your outgoing expenses outweigh your incoming expenses then something has to give. Perhaps there is an area in your business where you can reduce your expenses, even just for a short period of time, to help you catch your breath?
Financial problems can influence all aspects of your life including that of your personal life, affecting the quality of your mental state and even your ability to sleep at night.
The State Farm Center For Women & Financial Services has created a quick quiz to see which kind of business owner you are and to see where any issues may lie. They believe that women business owners fall into one of four categories:
Sleeping Soundly – balanced and in control
Tossing and turning – concerned and overwhelmed
Sleeping with one eye open – living in the now
Dreaming about the future – long-term focussed
Take the quiz and see which of the four groups refers to your current situation.
If you find that you are in the tossing and turning stage then you definitely need to work on your financial planning and goals in order that your business can flourish and you can achieve a good night’s sleep.