What’s Up, Young Boss!
Being clear about what you want from your business is going to be vital to your success as an entrepreneur. We all have something that we are passionate about but will our passion business generate the type of revenue that we want and need to pay for bills, debt and desired lifestyle.
Maybe you want to pay down student loans or maybe you want to save up for a family trip to Disney Land. No matter what your financial goals are, you need to be clear about what it is that you want to accomplish because if it’s not going to make you the money that you need, you should try doing something else.
Is My Business Real or Is it just a Hobby?
A passion that does not make you any money is a hobby. The first year, or two, for most businesses are challenging. You will have to spend money on branding, social media marketing, and other unexpected expenses but within that year you will be able to determine if your business is going to survive or not. This is why researching your industry before launching your business is so important. You do not want to start a business, simply because you think its a great idea. No there must be a demand for your product or service. You want to know if people are willing to spend money with you prior to your launch.
If you write books but no one buys them, it’s a hobby. If you make body lotion and creams, but only your friends and family buy from you, it’s a hobby. Your business must be able to thrive without you depending on friends and family members making a purchase.
Questions to Help Determine Your Financial Goals
To get a better understanding of your financial needs please answer the following questions:
How much money do you need per month?
What do you need money for? (List everything)
How much does it cost? (Then round up)
When do you need the money?
How much time are you willing to commit?
How many products/services do you need to sell to hit your goal?
How many sales do you need to make a month, week, day, hour?
What actions do you take to make a sale?
How can people buy from you?
How much money are you willing to spend on advertisement?
What are you willing to do to generate more sale?
By establishing your financial goals early you can determine quickly if you are in business or in a hobby. Of course, there are learning curves with every new venture, but your goals should help you seek out shortcuts to reaching your goals sooner, rather than later. Remember this, your student debt, car loan, upcoming birthday bash or new child do not wait for you figure things out. They need you to focus on the end goal now and get there as soon as possible.
If you answered these questions and realize that you are not achieving the financial success that you desire, you may want to examine your sales process. To be in business, no matter what business, means that you are in the business of sales. You are always selling an idea, a vision, a product or a service. Focus your energy on improving your ability to make sales. This is where your money is.
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