How to set your Financial Priorities for 2021
Are your finances in need of a little tidy-up and you need to know how to set your financial priorities for the year ahead? If your books are a mess and you’re sick of feeling overwhelmed by it all, keep reading.
This handy checklist will make it easy to set your priorities and action them efficiently. Trust me, you’ll be thanking yourself when the mad rush of the end of the financial year hits and your ahead of the game.
1. Select your Top Priorities for 2021
Select a max of 3 some ideas below!
- Paying back debt
- Increasing your profit
- Giving yourself a pay rise
- Scaling your business
- Hiring help/outsourcing things you don’t like doing
- Increasing revenue
- Investing in the growth of your business
- Decreasing your expenditure
- Other: ___________________________________________________
2. Take Action
The easiest way you can take action is by doing some leg-work now. Work through this list and you’ll be ready to strategise your way to success in 2021.
- Evaluate your pricing to ensure your profit margin is on-point. I’ve created a free pricing calculator to easily help you work out what you’re going to sell your amazing products (or services!) for and the related profit.
- Review your expenses, including the time it takes you to deliver your products and/or service. See if there are any opportunities to decrease costs and save yourself some $$$. Check your subscriptions, small leaks sink ships….
- Focus on selling your most profitable products and services! This is a no-brainer but it’s easy to get caught up. As a rule of thumb, the products and services that cost less to produce and bring in the most $$$ are your big hitters.
- Analyse your income and expenditure to create a budget. Make strategic decisions on where you will spend your money to grow your business. Will you hire a social media manager? Will you invest in training? Create your wishlist now and make sure you have a budget for it!
3. Pay yourself & save
Create a plan on how you will pay yourself, save for taxes and save for a rainy day. For example – You could put aside 30% of your income for taxes, 10% for business savings, 20% for expenses and then pay yourself 40% (be it through drawings for sole traders or wages for other entities, chat to your BAS or Tax Agent for your situation). This is not financial advice be sure to change to suit your personal/business circumstances but gives you a good idea.
If you’ve just launched your business and you’re not sure where to start with the boring business stuff, I’ve created the Ultimate New Business Checklist to guide you. It covers domain names, GST, insurance, social media and MORE.
You can download it here totally free.
Oh, and if you’re looking for answers to your number related questions, my FREE Facebook Group ‘Accounted For You Numbers Club’ is the place to hang.
Best of luck with your 2021 business plans!
Lisa x