The other day I was in a women in business group coaching session and a common theme was making money in business. Particularly, paying yourself when you’re in the start up phase. It got me thinking about money mindset, planning, expenses and also, being realistic about your personal circumstances.
Let’s start with the elephant in the room, reinvesting all income back into the business.
Stock and start-up costs
If you’re a product based business, your start-up costs will be higher than a service based business. The reality is, you’ll need to invest to launch a business, but that looks different to everyone. The key here is to stick to a firm budget. Can you do a small run of product X to test it out before you invest in a larger quantity. Sell products on pre-order if that works for you and your client base, plus DIY elements of your marketing if you can. Be savvy with your money by planning and monitoring closely!
Here’s something that’s true for everyone. You need to tell your money where to go rather than passively waiting to see where it ends up. Set yourself a goal for both expenses and income and work towards it. Doing this from the start will keep you honest about your money comings and goings and it will give you the knowledge you need to make smart decisions.
A budget is telling your money where to go, instead of wondering where it went.Dave Ramsey
If you want to draw an income from the business but can’t afford to unless you cut some expenses, make a choice and be comfortable in your decision.
This is a BIG one and a common thread among female-led business owners – we set such high expectations of ourselves as to what being successful is and paying ourselves. So what does ‘making money’ in business mean to you? Some thought it was about having money left over after paying the mortgage, some saw it as profit, some saw it as earning $40,000 (for example) per year or more.
Quite literally, if you are making more than you are spending, you are making money – it just depends how you manage it (covering future expenses tax and the like) and what you do with it at that point. Paying or contributing to the mortgage is income – you are paying yourself! If you want more cream on top and your business isn’t quite getting you there, you may need to look at alternative options.
Want to work on your Money Mindset – you need to check out The Clare Wood podcast, so amazing and chock a block full of super helpful topics. We all need to work on this – even me! You would be surprised at just how many things are stopping you from earning the income you dream of that aren’t actually business related.
Which brings me to my next point…
Your Personal Circumstances
Everyone has a different set-up with varying financial responsibilities. If you can afford to run a lean ship at home while your business dreams come to fruition, excellent! If not, it’s time to think outside the box. I know a heap of business ladies who have part-time jobs to supplement their income and honestly, if it gives you and your family peace of mind, it’s worth it! I did it myself while I was building Accounted For You.
Be clear on what you need and go get it – write a plan and goals. We’re all in business to make money at the end of the day so don’t be shy about shifting gears every now and then to get there.
So the answer is, there isn’t an answer as to when you’ll make money – everyones situation is unique and you can’t compare yourself to anyone else.
But I do encourage you to celebrate ALL the wins, even the small ones. Set goals, and pay yourself, however that looks for you. Everyones financial goals and needs are different, so if you need personalised advice and help, reach out to your BAS or Tax Agent, or a financial planner. They all have different areas they can help you in, but our goal is all the same, to help you be SUCCESSFUL 🙌
Most of all, I want you to know you aren’t alone in this! It’s hard going in the start-up phase and knowing the ins and outs of business and money is a big learning curve. It’s one I’m really passionate about which led me to launch my first ever course, Power In Numbers.
This course is for you if:
- You’re a newbie business owner and you need help with your numbers but you can’t afford to hire a bookkeeper.
- You’re a service provider who loves what they do but you fall over when it comes to invoicing, GST, preparing for tax season and claiming the right expenses, you’re just not sure.
- You run a product based business and the numbers side of the business is your blind spot.
- Side hustlers who are planning big things and want to start it out the right way.
- You don’t understand numbers or how to make them work for, rather than against, you in business.
- You don’t have time to sift through hundreds of Google searches to find the right information.
- You’re ready to be in control, organised & stress free and friends with your numbers.
If you answered YES to the above, I’d love you to join us in the next intake, jump on the waitlist to the first to hear about the next launch – to get you setup for SUCCESS!
power in numbers
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