Every business needs structure, strategy, and system. This is the trifecta of your business and part of this is having a good plan in place every step of the way.
If you don’t have a plan, then the IRS has one for you and their plan is going to cost you a ton.
First, you need to know your numbers because this gives you the flexibility to make good decisions. If you don’t know what it costs to run your business every month or cost to run your monthly budget every month, then you cannot make a decision because you don’t know where your cash sits.
Here are the numbers you need to include in your monthly checklist:
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How much money are you making?
Personally, you must know how much money you make and how much money you take home after taxes and expenses.
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How much are your expenses?
What does it cost you to live? What does it cost you for the extras – vacation, shopping, etc.? What does it cost to run your household?
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Know the value of your time.
You are not exchanging time for money so you have to know the value of your time.
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Know your price point.
Many business owners underprice their services, and they are devaluing themselves in the services that they give. And so as a provider of your products and services, you have to understand those price points. What’s the marketplace number and what’s your value? What do you do that’s unique? What’s your value? And what yields that price point?
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Know your client lifetime value.
It costs far more to go get a new client than to keep your customers happy. Make sure your customers stay happy with you because they will refer more people to you when you do a good job. Word of mouth is one of the best and most successful ways to advertise and market your business – and it costs nothing!
If you want to learn more about how to create a great financial system in place, check out https://marissanehlsen.com/llr014.
