What Do You Want Out of Life?
I see hundreds of people every year with an overwhelming desire to be their own boss. The catalyst for this life changing decision may be unemployment or the threat of redundancy in these challenging times or simply wanting to make sure that the profits that are earned through their hard work comes their way rather than heading for the ‘boss’.
What is very common however is the fact that they very rarely have thought through what they want to achieve other than the somewhat inaccurate wish to make a lot of money.
The starting point to understanding what they are trying to achieve should come from looking at either the lifestyle they are aspiring to attain or the survival income they must make to keep a roof over their heads, food on the table and clothes on their backs. We provide all our clients who attend our free workshop programmes with a survival income form to calculate the monthly income needed.
To be honest I don’t want to get out of bed in a morning for survival income, the hard work I am prepared to but in and the hours I will spend on the business deserve more than that so I like to think through the lifestyle I want and then cost that out.
On considering new business opportunities recently I thought about having two foreign holidays every year with a new car every other year, concerts and theatres, fine wines and a few shopping trips to keep my wardrobe up to date. I did hint to my wife that I wanted to take her out for a fine dining experience every month but that didn’t meet with unalloyed approved and a more frequent experience was forcibly suggested. All this was costed out and it was the first line I added to my cash flow forecast, if the business wouldn’t achieve this it was a non starter.
A cash flow forecast spreadsheet was then used to establish the level of sales that would provide sufficient profit to cover the business overheads, provide reserves for expansion and cover my income needs. A spreadsheet can be downloaded free from Enterprise Trust.