Strong financial goals for a business is essential for a successful virtual assistant business. Many of us start a business because we are talented in one way or the other. We are passionate about the services we are looking to offer.
In wanting to serve others and in using our talents, it would be dishonest to say that we are also not looking to make a good living for family and ourselves.
Setting financial goals for a business is important because we want to bring in an income to help support our family. Putting our expertise to good use and setting goals will help build the future you have always wanted.
Financial freedom and independence seem to be an overarching goal of freelancers and the Virtual Assistants Making Money Course is an effective way to help you get there.
You can start achieving financial freedom by setting specific financial goals for your business, setting your foundation and taking steps to get you there. Your goals for today will not be the same as your goals for 12 months from now or even 2-5 years from now.
Business Financial Goals
Begin the first step in financial goals for a business by setting short-term goals. Short-term goals are simply what you need or enough money to make ends meet.
In the Virtual Assistant Making Money Course, I provide an income goal sheet. In the income goal sheet, you can write down what your short-term goal is for this month and next month, something that would make a difference to your end goal. This short-term goal will be considered your “Making Ends Meet” month number.
The next goal to set and write down is the “Awesome Month” number. This financial goal for your business goes beyond your making ends meet number, to a number you can aspire to. This is the first goal that will blow your socks off and encourage you to keep moving onward and upward toward the next level.
The third level to financial goal setting lies at a level that you see as attainable–but is just out of your reach right now. This is your “Holy Moly Month” number for an amazing month. You will be able to look back at previous months and rejoice at how far you have come.
The financial goals to set NOW are the “Make Ends Meet” goal, the middle of the road “Awesome Month” goal, and the wow “Holy Moly Month” amazing goal.
Where would you like to be a year from now? Is your goal to make an extra $1,000 per year? Are you looking to fully replace your income? Where would you like to be in 5 – 10 years from now?
These are all questions you would need to revisit when you are setting the yearly goals for your business.
Write down these planned goals so that you don’t set yourself up to fail. Look towards a successful freelancing business.
Monthly Goals and Hourly Rates
Setting financial goals for business include figuring out what you would like to make on a monthly and/or hourly basis. I want to break this up for you in as simple terms as I can because many freelancers don’t quite get this right.
How do you set your monthly rates and hourly rates? Your rates are entirely driven by your needs. If you want to make more money per month, you will calculate the amount you want to earn more per month, divided by the hours you have available to allocate towards that extra income. This will give you the rate you would need to charge for those hours to make your desired monthly income.
If you are looking to make $400 more a month, you will need to consider how many hours you can realistically work in a week or in a month’s time to earn that money. If you have only 10 hours per week (40 hours per month) available, then $10 per hour will allow you to make that $400 per month with 40 hours per month available to do the work.
|Monthly/Weekly Income Goal Your Available Time = Hourly Rate|
|$400 per month 40 hrs per month (10 hrs per week ) = $10 per hour|
|$200 per month 16 hrs per month (4 hrs per week) = $12.50 per hour|
Reality vs. Expectations
It will be beneficial for you to make your rates attainable based on the services that you provide. Our dreams of what we can earn do not always equate to the skills and services we are qualified to offer. The same is true for the contrary. Sometimes the services we offer far outweigh or go above what we think we want to make.
For instance, a background in computer science, Information Technology, security or knowing WordPress can really drive your prices higher than general administrative skills like chore threads will. This doesn’t mean your services are less important than the other, but realistically the going rates differ depending on skill.
Evaluate your area of expertise against what you want or need to earn on an hourly basis. In a month, 6 months, or even a year or two, how would that bless your business?
Setting financial goals for a business takes a little more than knowing what you want to make a year. It takes setting clear incremental financial goals for your business then taking steps to assure you progress towards them.
Is your freelance business going too slow for you to see where you will be in a year or two? Alternatively, is it taking off so fast that you don’t have time to set financial goals for your business?
Whether you need some motivation in making more money, or you want to take a step back to make sure you are building towards the right goals, thinking about your financial goals early on is essential.