How do you spur yourself on in your business? Do you set bold goals, targets or forecasting? Or are you simply winging it? By setting annual, monthly and weekly revenue and profit targets you might be surprised by how quickly you can improve your financial mindset.
Winging it works, sometimes. But setting intentions and creating a definite focus can deliver the exact results you are craving. And that would be pretty cool, right?
So how do you create the focus that delivers the results you want? Have you set an annual revenue target that you want to achieve this year? Have you broken that target down so you know how much it is for each month, week or day? What about setting a profit target; if you know your business and your numbers you should be able to develop a profit target from your revenue targets as well.
The fabulous thing about focusing on both revenue and profit targets means you are also focusing on keeping costs to a minimum. Focusing on these targets can help to develop a “financial performance” mindset. Having this mindset means you are focused on improving the financial performance of your business.
Once you have developed a financial performance mindset your decision making becomes so much easier. From then on, every time you make a decision you will ask yourself, “what affect does this have on my revenue and profit targets?” I’m not suggesting you start madly cost cutting or getting rid of employees, because expenses are a necessary part of generating revenue. However changing your mindset means you will start cutting unnecessary expenses and finding more opportunities to increase revenue to help you achieve your targets.
In the same way we often need a goal to work towards to keep us motivated when exercising, the same applies to business. Existing in “just surviving” mode is the quickest way to your demise, but a planned intention outlining what will be achieved each week, month and year is the track to success. Athletes set incremental targets to ensure they get to the Olympics, and so too do successful business owners to ensure they grow their business each year. I know, because I have witnessed business owners tapping into a “financial performance” mindset and reaping the rewards. Once they set the intention, their business grows on purpose.
Try it out. Set annual revenue and profit targets for your business. Break them down to monthly and weekly targets. Measure your results weekly and monthly to keep yourself accountable. You may be surprised at how much you learn to love you numbers by improving your financial mindset.
What targets will you set?