Setting a financial goal is just a small part of strategic planning!!
If that makes you feel some kinda way, let's dig into it.
To be honest - I was gonna do a LIVE on this but thought y'all needed to see the MATH for real...
So, suppose you set a financial goal for 2022 of $120,000. That breaks down to $10,000 a month that you would need to generate in your business.
BUT - If you skip that part that considers how much money you need to live/pay yourself, AND how much you PAY OUT in the biz every month, AND Putting money aside for taxes you would not realize that goal is NOT going to meet your needs effectively.
AND it will have you working much harder in the business trying to make ends meet.
If you don't believe me, Let's do some quick math:
Income for the Month = $10,000 then you subtract -
Biz Self employment Tax (15.3%) = 1530
Biz Federal Tax (22%) = 2200
Biz Operational Expenses (15%) = 1500
Biz Savings/Emergency Fund (10%) = 1000
Biz Innovation (7%) = 700
Biz Owner Pay (30%) = 3000
Remaining cushion/funds = $70
But what if you need $4500 a month to pay your bills, then what you pay yourself is not meeting your needs?
Or What if your monthly business bills AND investment in coaching, outsourcing, funnels, ads, bank fees, payment processing fees, etc., is $5,000? Then your Operational expense set aside falls short, too.
Strategic Planning considers Profit AND "Loss" when setting financial goals for the year.
And if you think this is something only "Big" companies do, I'm sorry to tell you - that thinking will ensure that you never shift into a place of "Big" business.
If you are interested in learning more about my Strategic Planning Framework, and shifting into CEO mode to take your business tot he next level, join my free group TheWHOLE CEO
What is one question that you have about strategic planning? (Ask in the comments)