Boss babe, running your own show can be unpredictable at times. It’s important to plan your income so your entrepreneurship journey does not feel like an emotional roller coaster ride. To smooth out your path to financial freedom, create multiple streams of income in your business.
We all started our business because we’re passionate about what we do. It’s great to have the flexibility to create, be our own boss, and call all the shots. Most importantly, we find out work meaningful.
In order to continue doing what we love, we need to make sure our business thrives. Specifically, we need to determine our revenue streams. Before you think of the different ways your business can bring in income, first ask:
How much money do you need or want to make each year?
Take that yearly amount and divide it by 12 to see what you need/want to make per month. Not sure that your money goals are high enough to support your business and lifestyle? Determine your business profit and break even numbers here.
Define your revenue streams.
To help create more stable income as a small business owner, it’s ideal to create multiple revenue streams. So get to brainstorming! List the different products and offerings in your business.
For instance, if you are a web designer, here are possible different revenue streams:
1:1 web design for small business clients
Online web design course
Promoting affiliate web design products/services
Membership site for web design support
How much do you profit from each offering?
Let’s define how much money you profit from each offering. This can be different than how much you charge.
Say you sell products and charge your client $100 for the product. The product costs you $20 to make. Then your profit is $80 ($100-$20).
Say you offer a service. If you charge your client $100 an hour for a service. that is money for your time. Then your profit is $100.
How many can you sell per month?
Your time and energy is limited. So it’s important to determine how many of each revenue stream you have the capacity for each month.
Are all of your offerings based on the number of hours you have in a day? Can some of them be sold an unlimited amount of times like a online product?
Be sure you actually have the amount of hours you need to reach your goals without spreading yourself too thin. Remember, you have other tasks to take care of in your business than just client work.
Finally, put it all together. Calculate your revenue streams and plan your money goals. See if your planning gets you to your overall money goals.
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Set Specific Measurable Attainable Realistic Timely (SMART) goals
Trying to get a handle on all of all your business and personal income and expenses can be overwhelming. No worries, I’m with ya.
Setting SMART money goals for your business will help to increase business profits each quarter. Not sure where to start? Here are some examples:
- Create a usable bookkeeping system by the end of the week in order to track all business revenue and expenses.
- Interview at least three CPAs to hire a trustworthy accountant who cares about the success of your business by the end of the month.
- Find an accountability partner for business support by the end of the month.
If any of the above are your goals, you may want to consider my CPA Amy Northard’s Be Your Own CFO program.
Bookkeeping and taxes are not optional.
If you own a business, you need to understand the ins-and-outs of your business financials. Be Your Own CFO makes this easy. The ongoing membership includes instructional videos, and beautiful, downloadable guides that will walk you through the topics in an easy-to-understand format with an actionable checklist. The lessons will be continuously expanded and updated based on member feedback. Also, you will receive access to a private Facebook group where you can ask questions to a CPA and small business owners like you. It’s a tax deduction! Save your receipt for the program. The course is an investment in your business. Tax deductions lower your taxable income, which puts more money in your pocket during tax season!
Have a money date with yourself.
Schedule a money date with yourself each month. It could be the first Monday of the month where you knock out your bookkeeping and review your business’s income and expenses. Check in with your financial goals to see if you’re on track to meet them. If you’re looking for a little kickstart to get your finances in order, join my CPA Amy Northard and other girl bosses over at Be Your Own CFO. The Be Your Own CFO program includes access to a Certified Public Accountant and a membership site. The site includes short videos and guides that will walk you through the main topics in each lesson.
You have time to review and ask questions throughout the program. Amy has a private Facebook group for check-ins, questions, and accountability!