Hi! This is Brittney Castro of FinanciallyWiseWomen.com and today’s video is for all of you women out there who are small business owners.
So I’m talking to you if you’re a freelancer, if you’re doing independent contractor work, if you’re a consultant, if you’re a solo practitioner, really anybody who’s running their small business. My message today is that you need to calculate how much business revenue you actually need this year. So looking at 2012, what is the number you need to produce in your business? Usually this number is going to be very dependent upon the current lifestyle that you want today and the lifestyle you want in the future. So for example, let’s say we have a woman business owner and she knows she needs $50,000 just to pay for all of her bills in the current year. Then, she also needs another $25,000 per year to meet all of her financial goals because she has done her financial plan for the year. So we already we know she needs $75,000 just to support her current lifestyle and future lifestyle. Then you’re going to want to factor in personal income taxes and possibly business taxes and business expenses. You’ll probably need to need to work with your CPA to really figure out those numbers specifically for your situation. For example purposes let’s just say that this number equates to another $50,000 per year. So those two things combined equals $125,000 which is what the business needs to produce every year, or this year specifically, to support the current lifestyle of the woman business owner. So that’s the number you need to use in your business plan, marketing plan, you need to know this number, you probably need to break it out on a monthly weekly basis just so you know that you’re moving in the right direction.
If you haven’t already done so I really encourage you to calculate with that number is specifically for your situation. So take the time, think about it, what is the life you want to lead, and just help ensure that your business supports that lifestyle. If you haven’t done so already I encourage you to calculate your 2012 business revenue needs and start planning away. Thank you so much for watching!