So you may or may not know that when I was certain that consulting & coaching was the way I was headed, I projected my income out 10 years. Bit of a pipe dream? Maybe but that wasn’t my intention.
I looked at my numbers over a six month period and saw that I had almost doubled my business in that period, so I took the number and multiplied it out – year on year.
So yes, I know it’s ambitious but hey there’s nothing wrong with ambition!
So why did I do it?
Where am I headed financially?
As a new business owner I had no idea where I was headed financially. I knew I needed to bring in more money. I knew that I wanted sustainable growth. But I had no idea what that looked like for my business. So I went back to the numbers I had and used those. Let’s face it, the past is a good indicator for the future.
By projecting my income out 10 years I also knew that there were going to be points where I was going to have to change and perhaps bring new offers into the business – just to achieve the desired growth. It gives me time to train and develop, things which take time.
To acclimatise to the financial position
Ever think of a dollar figure and get a little scared by the enormity of the number? What if you looked at it every day and you could see how you were progressing towards it and how far you’d come?
So you dream of hitting 5-figures, 6-figures, or 7-figures with your income, right? Because I’ve projected out my income (and I track my progress against it), I can see exactly when I’m set to achieve that figure. I look at my chart most days and I can see those multiple figure incomes coming. I can also see that I’m set to achieve some earlier than anticipate and that is an incredible feeling. I remember when a number seemed unachievable and now I’m shooting past it.
Repeated exposure to your goals creates a more concrete imprint in your mind making it more likely to be achieved.
To keep myself on track
Yep, there are times where I get in a rut. Bills are coming in or forecasted and the income is just not going to cut it. Tracking my income I can see where these things are and I can see with relative certainty where the horizon is for a surplus. It’s nice to see a way out knowing the money is coming.
The other way it keeps me on track is that it pushes me to achieve more, to reach next year’s goal this year, to innovate and grow my business sooner, to stop procrastinating on an idea, to try. Seeing my goals and watching them draw near motivates me to achieve more.
To anticipate business changes.
Projecting and tracking my finances means that I can see where I am likely to need to bring in an accountant or to outsource other functions of my business. By having a financial plan, I can see where I need to make business changes in the future or if I need to make them sooner.
To celebrate
This is my favourite thing. I am keen to celebrate success. I enjoy knowing that my hard work has paid off and I recognise that. Let’s face it, not many of us are in the business of making money for money’s sake. So having and tracking my finances means that I can also see that I am achieving and therefore I can celebrate. How I celebrate differs, but it’s never extravagant. And don’t worry, sometimes celebrations are put off on account of a lack of finances that month, but because I track and project, I know when I will be able to celebrate and with what.
So I encourage all business owners to project and track their income. Project out a number of years and track at least weekly. ”Keep an eye on the pennies and the pounds will follow.”
If you’d like a copy of the financial tracker I use, you can
So you may or may not know that when I was certain that consulting & coaching was the way I was headed, I projected my income out 10 years. Bit of a pipe dream? Maybe but that wasn’t my intention.
I looked at my numbers over a six month period and saw that I had almost doubled my business in that period, so I took the number and multiplied it out – year on year.
So yes, I know it’s ambitious but hey there’s nothing wrong with ambition!
So why did I do it?
Where am I headed financially?
As a new business owner I had no idea where I was headed financially. I knew I needed to bring in more money. I knew that I wanted sustainable growth. But I had no idea what that looked like for my business. So I went back to the numbers I had and used those. Let’s face it, the past is a good indicator for the future.
By projecting my income out 10 years I also knew that there were going to be points where I was going to have to change and perhaps bring new offers into the business – just to achieve the desired growth. It gives me time to train and develop, things which take time.
To acclimatise to the financial position
Ever think of a dollar figure and get a little scared by the enormity of the number? What if you looked at it every day and you could see how you were progressing towards it and how far you’d come?
So you dream of hitting 5-figures, 6-figures, or 7-figures with your income, right? Because I’ve projected out my income (and I track my progress against it), I can see exactly when I’m set to achieve that figure. I look at my chart most days and I can see those multiple figure incomes coming. I can also see that I’m set to achieve some earlier than anticipate and that is an incredible feeling. I remember when a number seemed unachievable and now I’m shooting past it.
Repeated exposure to your goals creates a more concrete imprint in your mind making it more likely to be achieved.
To keep myself on track
Yep, there are times where I get in a rut. Bills are coming in or forecasted and the income is just not going to cut it. Tracking my income I can see where these things are and I can see with relative certainty where the horizon is for a surplus. It’s nice to see a way out knowing the money is coming.
The other way it keeps me on track is that it pushes me to achieve more, to reach next year’s goal this year, to innovate and grow my business sooner, to stop procrastinating on an idea, to try. Seeing my goals and watching them draw near motivates me to achieve more.
To anticipate business changes.
Projecting and tracking my finances means that I can see where I am likely to need to bring in an accountant or to outsource other functions of my business. By having a financial plan, I can see where I need to make business changes in the future or if I need to make them sooner.
To celebrate
This is my favourite thing. I am keen to celebrate success. I enjoy knowing that my hard work has paid off and I recognise that. Let’s face it, not many of us are in the business of making money for money’s sake. So having and tracking my finances means that I can also see that I am achieving and therefore I can celebrate. How I celebrate differs, but it’s never extravagant. And don’t worry, sometimes celebrations are put off on account of a lack of finances that month, but because I track and project, I know when I will be able to celebrate and with what.
So I encourage all business owners to project and track their income. Project out a number of years and track at least weekly. ”Keep an eye on the pennies and the pounds will follow.”
If you’d like a copy of the financial tracker I use, you can download it here.