How to Create Financial Projections for Your Business
Let’s talk about creating financial projections in your business.
I know this can be a really scary topic to talk about which is why a lot of newer entrepreneurs might avoid it altogether! It’s common to feel overwhelmed to look at your finances because you don't have a lot of experience in this or you don't have a bookkeeper or an accountant to help you. However, when you’re starting to scale is — it's so important to get familiar with your numbers and to just play with your numbers when you're making goals!
If you are a service provider and you're starting to scale and you're wondering when is the right time to outsource or whether you should be raising your prices — you're mostly concerned about how can you pay yourself. That's the biggest concern for a lot of newer business owners and really just sitting down and playing with your numbers (not making them right, not making them wrong) is going to make you feel a lot more confident that you can make your business successful.
We go back to what's the big why in your business, what are your big goals in your business, how do you want your business to support you and the life that you want to be leading because there's some people scaling sounds great. It's the business that's making more money. If you're not taking into account expenses, you may not be making any extra money. And how is that going to make you feel as a business owner? You're either going to feel supported around that, or you're going to want to burn it to the ground in two years because you're stressed out and you're not making enough money. This has happened so, so often. And that is why it's so important to get a handle on your numbers, even if it's just estimating. Play with those numbers, and it is going to have such a big impact.
