Unfortunately, it is not unusual to find that entrepreneurs don’t have any financial goals in place. Yet establishing your goals up front is one of the surest ways to help make your day-to-day decisions easier. So whether you are here looking for ideas, or accepting that it’s time for a change, let’s go through a few financial goals your business should have.
1. Have an Emergency Fund
Having an emergency fund is sometimes considered a short-term financial goal. However, an emergency fund has important long-term benefits – which is why it’s one of the good financial goals that you should plan to achieve.
Here are just a few ways an emergency fund can help your business:
- It reduces your stress level
- It helps you out during low seasons to keep the business running
- It is a good way to manage your money
- It helps you to cover payroll when accounts receivables are not coming in on time
- It helps you survive economic swings
2. Get Completely Out of Debt
This one may sound difficult but you can do it, regardless of how much revenue or savings you have.
If you want to get the most out of your profits, you must get out of debt!
Not convinced? Here is a few reasons:
- No debt means you have full control over your revenue. Wouldn’t you love that?
- You will have more money for profit, investing or growing your business
- Decisions about the customers you hire will become easier. Yea, you know that customer you wish you didn’t have to serve but they help pay your loans
- Free your mind and reduce the stress that comes with having debt
3. Create Multiple Income Streams
You never know which product or service will be the most successful, so if it makes sense for your business and target customers, then have multiple product or service offerings.
- One of your income streams could become the cash cow for the business
- Extra cash can help you fast track your emergency fund financial goal
- Multiple revenue streams reduce your dependency on any single source of income
4. Run Your Business on Less
If you reduce your expenses you will automatically have more money to use in your business. Combining this with the multiple-income-streams financial goal will make your business lean and efficient.
5. Share Your Good Fortune
If your business is doing well, consider sharing your extra profit with people who are less fortunate. If this doesn’t sit well with you then remember the love of money is the root of all evil and money may have control over your life.
It doesn’t matter how much profit you make in your business you should never let it control you.
Besides there are good reasons you should give to others:
- It shows you have control over money. Somehow the more you give it always seems to come back
- Giving to others makes you just feel good
- Giving makes you a part of the solution to the world’s challenges
Bonus: A Plan Upon Your Death
Yup, this is something you don’t usually think about, especially as a financial goal.
How is the business going to continue running after you die? Do you have a succession plan?
What about what happens to your family or dependents after you die? Do you have a financial plan for your loved ones? No? Then sit down with a lawyer and plan your estate. This way you don’t leave them with a financial burden to carry and you provide them with sufficient finances to support themselves after you are gone.
What other financial goals have you set for yourself? Tell us in the comments below.