3 August 2022
Have you set any financial goals for this year or quarter? If you haven’t, no worries, it’s never too late to start.
Do you ever think that creating financial goals is pointless? I used to think that. I used to establish goals and deadlines, then completely FORGET that I had ever set those goals in the first place. I’d eventually come upon a crumpled-up piece of paper with my objective written on it and think, “Oh yeah, I had a goal once.”
Setting financial goals is a skill that requires consideration of the past, the present, and the future in order to produce a target that is both realistic and applicable to your situation. Setting financial goals calls for reflection and vision in order to determine what you REALLY want and how to get it. Wanting something is not enough..
The following 3 steps will help you develop financial goals that will help you accomplish your business goals:
Step 1: Understand why it’s important
Understanding why this goal is vital to YOUR life is a sometimes forgotten step in the financial goal-setting process. When you achieve your goal, how does your life change?
Using generalizations like “I’ll be happier” or “I’ll have more freedom” is insufficient. Investigate this thoroughly.
When you are happier, what is possible? Who do you choose to represent your true self?
When you’re free, what fundamental principles are being upheld? How can adhering to those ideals help your firm succeed?
Why do we act this way? To put it plainly, if a goal isn’t essential to you, you won’t take the necessary actions to achieve it.
Probably one of the tasks on your list is something you really don’t want to accomplish. And instead of doing that one thing, you’ll find a million other things to do. You’ll be able to accomplish that awful task you’ve been putting off if you understand the major WHY behind the aim.
Step 2: Visualize the outcome
The first step in defining goals is to ask yourself, “What do you want?”
* Be particular when you think about what you desire. Saying you desire more family time doesn’t convey a powerful message. Specify the kind of time you wish to spend with your family.
* Would you want to pick up your children from school earlier? Make supper each evening? Take long road trips with your family? Take a full day off to spend the summer with your children?
* Setting a financial objective that meets your true needs is made easier the more specific you can be when defining what you want.
Step 3: Review your data
Review where you are in order to figure out where you want to go and your current financial data has a lot to tell you about where you’re at right now.
This is what you can gather from your financial data:
* Your best selling product or service
* Your busiest and slowest times of the year
* Your spending pain points (i.e. where you overspend)
* What’s driving the profitability of your business up or down.
Yup, you can really discover all that from just a few reports!
At first, looking at your reports will feel like reading a foreign language. Keep with it! The more time you spend looking at those numbers the more sense they will make.
TIP: Run a basic Profit & Loss report for your business this year. Look at your total numbers. What surprises you? What seems out of the ordinary? What do you have more questions about? Write your observations down.
Now, run the same report for every month of the year. Look at these reports using your list of questions as a lens. Notice where big shifts occur. Try to answer your questions using just your reports.
I hope this will help to get you started.
If you’d like to chat, click this link https://go.oncehub.com/JEANETTACARDINE to schedule your strategy session now.
Yours in Business,