May 19, 2020
Money plus mindset equals financial success! We’re chatting on the
Fab Fempreneurs Podcast Show with wealth and mindset coach, Tess
Wicks, about how and why to set specific, purposeful revenue goals.
As a business owner, it is super important to know how much money
you are making and where that money is going. Tess Wicks is a
Wealth and Mindset Coach for Online Coaches and Service-Based
Entrepreneurs. She's worked with individuals to help them master
their cash flow for the past 4 years and fully understands the
struggles and limitations of being a business owner and having the
responsibility of both the business's finances and your own. What
is considered a successful business owner has changed: you don’t
have to have a 6 figure business in order to be successful. Being
clear on your numbers is the first step in financial
success.
Takeaways
1. Journal out your ideal day
Become clear on what you want in your personal life and not letting
vanity numbers guide you. Weave in all your needs (e.g., putting
money away for taxes) into your money goals. Identify your personal
expenses- which are necessary and which are “on pause” right now by
monthly, semi-annual and annual needs list. A common example of
something you can pause if you are struggling with money, or
wanting to simplify, is as simple as canceling a TV subscription or
any subscription that processes automatically that you may not even
use.
2. Identify all the outflows in your business - annually!
Identify your needs and what you want. For business, maybe you want
to invest in content creation or hire an assistant. Create two
purpose-driven goals for the needs and wants in your business.
3. Do the Easy Profit Math, to calculate your purpose-driven
revenue goals, while accounting for the 4 Financial Elements of a
Business (including profit!)
How does it break down: your salary (what you pay yourself),
business costs, profit and taxes. Where does the money go in order
to have a business. What percentage of dollars you make are you
going to put aside for taxes (talk to a CPA). Think 15%-20%, this a
percentage of revenue not profit. Be proactive and set money aside.
And if you have money left over, save it or splurge and go on a
vacation! You also want to have money aside for an emergency fund
or “rainy day account”, not only for your personal expenses, but
for your business. Have money as a backup to supplement your income
if you are going through a hard time.
4. Use your purposeful revenue goal to inform your business
decisions: pricing, launch strategy, etc.
When pricing your services, think about your revenue goals. If you
know how much you want to make, this is how much you should charge.
Your pricing should go into how much it costs to run the product or
service.