Many entrepreneurs I talk to are striving to build a 6-figure business. "6 figures" has become a buzz word in the entrepreneurial world and many people dream of it without ever really getting clarity around it. That's why I am starting this new series where I will be sharing 6 steps to building a 6-figure business.
Every entrepreneur wants their business to grow. Whether you want your business to grow to 6-figures or you simply want to hit your first 4-figure month, then this series is for you.
Let's go ahead and dive in to the first secret, ready?
Secret #1: Set Financial Goals (Monthly/Yearly)
One of the biggest mistakes entrepreneurs make, and that I used to make, was to not set financial goals. I started out my business just wanting to match my full-time salary. And after I did, it basically came down to make at least that amount of money each month, if it's more then great!
But here's the thing, building a growing business is an intentional thing. You are the CEO, you are the one in charge of the finances. When you first start out, you are the CFO, accountant, financial analyst, sales person, etc.
Do you think that big successful companies go into each month saying "I guess we will see how much money we make this month."
NOT AT ALL! They are intentional in setting financial goals so that they can stay afloat as a business and also expand.
So here are some key action steps you can apply:
1. Set yearly financial goals
Start by deciding how much money you want to make for the year. Is it $30k, $50k, $100k? Set your yearly income goal.
2. Set monthly financial goals
Then, take that number and divide it by 12 to get your monthly income goal. For example, if you want to hit $100k in 12 months then you need to make $8,333.34 per month.
3. Make sure those goals are focused on growth
When you set your yearly and monthly goal I want to encourage you to make them growth focused. For example, an employee would say "I need to make $5,000 per month for myself and my family/living." A CEO would say "I need to make $8,000 per month so I can take home $5k and use $3k on business investments (employees, coaching, business costs, etc.) Make room to grow in your goals and think like a CEO!
4. Create action steps to meet those goals
Lastly and most importantly, create action steps to actually help you meet your goals. You want to make $5k per month? Great! How are you going to do it? What are you going to offer of value to help you meet that goal? Determine what you need to sell and how many each month in order to hit your financial goal. Then you will know exactly what to focus on.
As a CEO, numbers become key to growing a thriving business. So whether you want to make $3k per month or $8k, know what those numbers are and what steps you are going to take to help you get there.
If this topic is resonating with you, I want to invite you to join me in the Shepreneur Community to talk more about this topic and join me via live video every week as I go into this topic deeper. You can join here.