How to Make a Financial Plan for Your Business (Before Leaving Your 9-5)
“You must gain control over your money or the lack of it will forever control you” – Dave Ramsey
This week’s episode is a lesson on financial planning. Whether you’re still working your 9-5 while building your business or you’ve made the leap to full-time entrepreneur, getting clear on your cash flow and making a financial plan are imperative for success and growth. Grab your notebook and pen and dive into this episode. Also, download the free financial planning template and start building your money grail.
“Money Grail” – your money grail is the end result of income or revenue you are working towards.
Target Revenue and Target Income
The amount of money you need on a daily basis to run the business, and your life, while also having some cash flow that you can reinvest into your business so that you can grow.
If you are full time in your job – focus on replacing your income
If you have already made the leap and are full time in your business – focus on creating a revenue goal that is realistic and trackable.
Soon, the brand grew, always fueled by the mission of bringing financial literacy to young people in a way that’s unique, relevant, and entertaining.
Why do we look at “Per Day” revenue?
Observing how much money you need to make per day is the fastest way to remove any emotional limitations, and stop you from making huge lofty goals. Looking at your revenue per day also will force you to be a bit more creative and direct with the activities you can actually achieve in a 12 hour period.
Your New Plan
Create a realistic target, not an idealized one based on your current circumstances. To do this you need to understand your financial world:
Fixed Costs – Expenses that remain constant for a period of time no matter the level of outputs, like rent, insurance, car notes
Variable Expenses- Expenses that change directly to the changes in your activity, like groceries, shopping, self care, entertainment
Sacrifices – Expenses that you can completely cut out cold-turkey; daily Starbucks, Netflix, Uber Eats.
What do you do with what you save?
All the money you are saving by trimming should go back into your business for faster growth.
Invest in something that will result in more income / revenue.
Create your Money Grail- Now that you have reduced overall expenses use the free financial planning template to create a more refined Money Grail, this number may be significantly smaller that your current income level or revenue goal. That is a good thing!
Remember: work smarter, not harder.
Rate, Review, & Subscribe on Apple Podcasts
“I love Morgan and The WorkSmart Advisor Podcast.” <– If that sounds like you, please consider rating and reviewing my show! This helps me support more entrepreneurs— just like you grow and scale their business. Click here, scroll to the bottom, tap to rate with five stars, and select “Write a Review.” Then be sure to tell me what you loved about the episode!
If you haven’t done so already, subscribe to the podcast. I’m adding new episodes weekly and if you’re not subscribed there’s a good chance you’ll miss some new gems. Subscribe now!
Expenses that remain constant for a period of time no matter the level of outputs, like rent, insurance, car notes
Expenses that change directly to the changes in your activity, like groceries, shopping, self care, entertainment
Expenses that you can completely cut out cold-turkey; daily Starbucks, Netflix, Uber Eats.