5 Steps to Hitting Your Income Goal
Remember those goals you wrote down at the beginning of the year? Or the ones you wrote down when you first started your shop? It’s time to find them, pull them back out, and see if they’ve become a reality for you yet. One of the most important goals we biz owners set for ourselves is an income goal (the exciting part, right?!). While much of a business is cycling money right back into your shop, the income you make should align with your personal life goals as well. So, first things first, how are you going to hit that income goal? Let’s start this journey together, shall we.
- What do You Want your Income to Align with?
Whether you’ve written this goal down or not, think about what your income goal includes what you want it to align with in your life. Do you want to pay off credit card debt? Student loans? Start a savings? Or simply have it be your main gig? Not only are all of these things valid, matching them up with a solid number is a great way to get the ball rolling. No matter the number, don’t be afraid to write it down. There is no number too big or small!
- Decide the Number then Add a Little More
Just like anything else in life, it’s important to give yourself a little cushion. Once you’ve set your income goal it’s customary to add a percentage that covers the operational costs: equipment, hiring, taxes, etc. Once you’ve determined what these monthly costs will be, chalk that up to a percentage and be sure to include it into your income goal.
- Invest in Bookkeeping
One of the best things a shop owner can do for themselves is invest in solid bookkeeping. Whether that’s by hiring a professional to do the parts you can’t or invest in a software that tracks things to makes your life easier, do it! By keeping track of your monthly costs and revenue, you’re able to keep things tracked and pay yourself what you really deserve (and of course, what aligns with your income goal).
- Pay Yourself First
While much of income goes back into your business, it’s important to “pay yourself first”. Since this can only be done by taking care of the big stuff first, it all goes back to why an income goal is so important and why the number you choose should not be judged as too small or too big. Covering what YOU want to make from your income should be the biggest factor in the goal you make, so don’t be afraid to dream big. As soon as you’re able to, set aside a certain “you” percentage for each sale that you make.
- Revisit & Raise the Stakes
Just when you thought your income goal was enough, we thought we’d throw you this curve ball. Don’t be afraid to ask yourself for more. Your income goal is one you should be revisiting on a daily basis, at least within the first year of business. It’s a goal that you have no choice but to make a reality, so setting a precedent will be a crucial step in the overall success of your shop. Your life will change from month to month, so don’t be afraid to align each monthly income goal with your personal wants, needs, and desires as they grow.
There’s a lot of jargon and business terminology to learn in the means of business, but we thought we’d give you steps to form a bigger picture. Especially when it comes to your income goal. These are the steps that help you pay yourself but also maintain a sense of pride and resilience with your shop’s success. With that, we’d love to know which step you’re on in your biz journey and how we can help you stay on track! Share your questions, concerns, and excitement in the comments below!Love this post? You may also like Passive Income Ideas for Your Shop