Last week in Part 1 of Money Talks we explored our relationship to money and looked at the categories of Expenses to start pulling together a realistic financial goal for 2013. As promised, this week is fun.
But only if you like making money.
Time to figure out all the ways we can bring income to our business. All. The. Ways.
It’s really important that your business has multiple avenues of income.
Why?
1. Businesses run in seasons and cycles. Multiple avenues of income ensure that you have enough coming in year-round.
2. Some customers need an entry level option so they can test you out.
3. Variety is the spice of life. Most entrepreneurs get bored easily so having different products and services keep you active and engaged in your work.
If you need help developing your multiple avenues, contact me here. I’m happy to share some examples.
Note: This is where the Profit + Loss Projection worksheet I made for you last week comes in REALLY handy.
List out all of the products and services you plan to offer in the next year. Focus first on the things you want to do – but don’t discredit the things that are steady/boring/dreadful just yet.
Plug these puppies into your worksheet in the Revenue section along with the Price (what you charge).
Now we’re ready to project. I’ve set this worksheet up so you can easily manipulate the quantities sold each month and get a different result. Set the quantity of sales in each category for every month of 2013.
The first time you do this, be super realistic. If January is typically a slow month, treat accordingly.
When that’s complete, take a look at your numbers and see where you landed. Did you cover your expenses each month? Did you come out ahead?
It’s not pessimistic to say that you probably didn’t hit your annual ‘goal’ in this round but that’s okay.
You’re going to have to stretch a bit.
So keep playing with the numbers – think about small but significant increases. Make your quantities increase every month…even if just by 1 or 2. Ask yourself “Is this possible?”
The answer is almost surely
Yes.
When you have the numbers worked out in front of you it becomes surprisingly easy. Knowing what these numbers mean to your BIG picture goal will give you motivation you need to make it happen.
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