Let’s face it: its costs a lot to live.
As a small-business owner, you have to deal with not only personal expenses (housing, food, etc), but also the cost of growing your business.
The stress of being in charge of your own paycheck can make even taking care of your basic needs feel like an overwhelming task.
We all have a bottom line. What’s yours?
With a clear understanding of the numbers, you will be empowered to accomplish anything. Let’s break it down:
Your personal expenses will be a combination of fixed, variable, and discretionary expenses. You need to also factor in your long-term goals (BIG WHYs), and let’s not forget taxes, to determine how much you need to be saving.
Put these numbers to paper. This represents how much you need.
The two biggest factors in determining net revenue are:
Business Income: What do you sell, and how much?
Business Expense: How much does the business cost to run at that level? (Including Cost of Goods Sold, and Cash Reserves)
A word of caution: properly accounting for your business taxes IS tricky, and you will likely want to speak with a CPA to make sure you’re not paying too much (have you talked about filing as an S-corp?)
Put these numbers to paper. What’s left represents how much you can make.
The Bottom Line
What you need, and what you can make. How do those numbers compare?
If what you can make is less that what you need, you need to make adjustments somewhere.
Of course, this is all easier when you have someone to walk you through it step by step, and some way to keep it all straight.
In our micro-course, releasing at the end of the month, we break this process down step-by-step into easily-digestible parts, using a simple tool that takes the mystery out of the data.
Want more? Join our community to get access to this course, as well as 1:1 coaching.
Get Paid, and Get it Done!
Jessica Fletcher grows micro-businesses by getting them from where they are to where they want to be through advice, coaching, and fractional-COO support. Which business are you?