How Much Money Do You Want To Make? - Linda Edmiston
How Much Money Do You Want to Make?
Working in your Genius Zone leads to more True Profits.
How much money do you want to make? $5,000 a month, $10,000 a month, $250,000 or a $1 million dollars a year??? That is the question most marketing gurus ask in all their webinars, classes, and courses being offered out there. They focus on the number of sales you need to have based upon your price point.
But I say WHO CARES how much money you make. It only matters how much money you KEEP!
I’m talking about the true profitability of your business. But how do you calculate your “True Profit”? And how do you make it GROW?
We all know that Net Profit is Gross Sales minus Expenses. This is the amount you pay tax on.
But True Profit is what is left after everything is paid out including what you are saving for the future. And this takes a bit more attention and commitment.
- Pay yourself first. According to the book Rich Dad, Poor Dad the best way is to set aside 30% of your gross sales for savings, investing, charities, and paying down debt before paying any expenses. I save this money in a separate savings account so I can be inspired as these accounts grow over time. By using a percentage of your sales, no matter how big or small your income is, you are always moving forward.
- Track all your expenses monthly. This is the key to having tax time be as easy as possible, even if you aren’t a numbers geek like me. You can use a simple spreadsheet, free or paid accounting software, or hire a bookkeeper/CPA. But you need to know every month where you are at financially.
- Calculate, save, and track how much you are setting aside for taxes. You are setting money aside out of every sale, aren’t you??? It’s better to save extra than not enough.
Now your True Profit is ready to be calculated. Take your Gross Sales minus those buckets. What is left? Does this make you happy or do you want more?
So how do we start to grow our True Profit? Because let’s be honest, we all want to grow that bottom line, right?
You start by reviewing all your subscriptions and expenses and determine if and how effectively you are using them. My clients typically find between $500 and $2,000 a year in expenses that they are not using or maximizing. How much do you think you could find?
Then we need to set up the software and systems that are worth the money and cancel all the rest. Our goal is to have you spend less time working on your business and more time in your Genius Zone - working with your clients.
What is your Genius Zone? This is where your passion and innate talents come together. I believe that everyone can find and enhance their genius zone. Being in our genius zone, allows us to enjoy our business and be the most successful. By aligning and focusing in our genius zone, we have more impactful and less salesy sales conversations. And those lead to working with more of our ideal clients, which makes our hearts sing and our bank accounts grow.
My goal is that as you have more time to focus in your genius zone, your sales increase, of course, but your True Profit grows even faster.
Cheers to Empowering Your Best Business!
Business Strategies and Systems Coach