3 things you can do this January to set yourself up for a Financially Successful Year
I want to talk to you about 3 things you and I can do this month to set ourselves up for a financially successful year.
I’m thinking… taking home at least $10k/month, a biz generating at least $500k in revenue, increasing team wages, and taking a few nice trips..
And how is all this going to happen?? ➡️➡️
Well, one way is by taking a closer look at our finances. Why should we do this??
🤷🏼♀️ Well, I usually go a little overboard in December and I spend more than I’d like (maybe you can relate).
👍🏻 I know I have tax filing obligations coming up with CRA and I want to be ready.
💰I don’t want to run a side-hustle-hobby-of-a-mgt-consulting-firm, I want to continue running a thriving business with things like employees, clients, and computers lol.
💅🏻 And finally, if I’m not looking at my money sitch, who is?
Unfortunately, I’ve seen far too many business owners who keep their heads in the sand when it comes to their finances - and I’ve been guilty of this at times too.
When there is $20k, $50k or $150k coming in the door each month, it’s easy to fall into the trap of believing that the money will just take care of itself.
But it doesn’t. Sorry/not sorry, friend.. 🤯
And even if you have a bookkeeper or controller or a full-time CPA on staff, I can guarantee that no one on your team will bring the same attitude towards your business’ financials as you do. 🤔
✨ Your biz pays your mortgage
❤️ Your biz also supports the lives and families of your team members (this is a sacred responsibility for me)
🔥 Your biz funds your trips to Tulum, Sicily and Canmore
🎉 Your biz gives you the big, juicy, freedom-filled life that other people only dream of.
And if you don’t have your eyes on your biz’s finances, there is a risk that you are not going to be able to pay your team members, or you aren’t seeing the ROI you desire on certain investments or worse
-
you are inadvertently creating a situation where you will have to quickly pivot because all of a sudden you’re super low on cash.
So let’s not do that.
Instead, today I thought I’d pull back the curtains a bit and share the 3 things I do each and every January to ensure the money-side of my life/biz is on-track for another successful year.
And what does a successful year look like for me?
📈 My biz generates at least $500k in revenue
💰 I can afford to increase my team’s wages by at least 5%
💅🏻I pay myself at least $10k/month, and
🎉 I take at least 3 big trips.
So let’s discuss how to ensure we’re both on track for a great 💰💰 year.
I make a “back of a napkin” cash flow projection for my biz for Jan - Mar
Yes, I know I harp on this, but as my first Scholastic agenda told me in grade 4: Those who fail to plan, plan to fail.
So just do it - here’s a link to a simple template you can use.
You’ll need 4 numbers for each of Jan, Feb and March - your anticipated revenue and your largest 3 anticipated expenses.
This should take you about 15-20mins.
If you get a positive number, good (you have more $$ coming in than going out).
If you get a negative number, that’s less good (you have more $$ going out than coming in). I need you to look at ways to either increase your revenue and/or decrease or defer your expenses.
I review my debt levels and ensure I have a plan for repayment
I write down my debt balances - credit cards, line of credit, off-balance sheet loans, etc.
I write out the interest rate associated with each debt amount
I ensure I know my minimum payment required each month and also set up automated payments for these amounts (if I have extra cash, I top up these payments but automating things makes sure I never miss a payment)
And last, but not least… every January, I go back to using cash for some of my personal expenses.
Yes, you read that right - I put my credit and debit card away (for the most part) in January. I do this because I feel like swiping and tapping all day long puts me out of touch with the amount of money passing through my hands each month. Having cash that I can touch, feel and misplace (lol) allows me to feel more gratitude for all that I have.
So, in true Gail Vaz Oxlade style, I get out three ziploc bags. One for food (groceries + restaurants), one for fun stuff (entertainment, books, etc), and one for fuel.
I put cash in each bag each week and make a game of trying to stay on budget. If I have extra cash left at the end of the week, I spend it.
That’s it.
And also, I am so frickin excited for one new client to start in 7-Fig CEO in the next few weeks - I don’t know who she is, but I can feel that she’s close!!
This program is perfect for you if you’re interested in improving your biz’s profitability by managing key expenses and investing your precious dollars strategically. **As you grow and scale, this is crucial so that growth in revenue doesn’t inadvertently decrease your bottom line such that you actually have LESS in your pocket at the end of the month. **
My 7-Fig CEO helps by taking your big goals (aka doubling your revenue, expanding to that second location, adding team members) and chunking them down into bite-size steps that me and my team will help you execute.
What is it:
Me and my team of CPA, admin and systems experts will provide consulting services over a period of six (6) months,
Your program will be structured as a monthly allotment of 50 CPA and Admin/Systems consulting hours. While you will work one-on-one with me (financial and leadership coaching, strategy development), I will also include my team in your file. My team brings over two decades of combined experience supporting professional services firms with the admin, systems, and execution-side of big goals.
Extended payment plans are available
Basically, you’ll get six months of 1:1 strategy, leadership and financial coaching from moi and dozens of hours of support from my admin, systems and CPA team.
And why do you need team support? Well, I can give you all the coaching in the world, but I can’t give you more than 24hrs in your day so let me and my team help carry the load.
If this all sounds good to you, click the link below to set up a time to chat :)
Take care and talk soon,
Tanya