Business Planning

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Setting Financial Goals

Business Planning Your Business Concept Setting Financial Goals
Have you downloaded the Business Planning Workbook from the last topic?

Why set targets

  1. You’re not doing this to be average: Presumably your job supports you and your family so if you are going to risk that by starting a business most people want to know that the potential reward is worth it and how long it will take
  2. Understand how long you have: Companies don’t start making money right away, so you need to know how long you have:
    1. How much you need to pay your bills each month
    2. How much you have in the bank
    3. Whether you need to leave your current job to start your business

Example:

  1. Open the Workbook (downloaded In previous class)
  2. Go to the expenses page
    1. Fill in your expenses
    2. Figure out how much you need to make each month
    3. Put in your savings
    4. Figure out have many months you could go full time on your business
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Video Transcript(s):

We believe that in any project you should start with the goal and work backwards. And the goal of a business is to provide your employees with a stable and fair salary, and to make you rich.

So let's figure out how much money you and your co founders, need to make to meet your goals

And while we’re at it, let's figure out how many months you could spend between leaving your current job and when your company starts paying you, that number’s going to help us a couple exercises from now

So open your workbook to the financial analysis page and fill in:

  • The amount of money you need each month
  • Your goal salary
  • How much money you have in the bank.
  • And compute how many months of savings that represents

So now that you know how much you need to make, and how long you COULD sustain yourself if you went all in, let's get a sense for how long it MIGHT take you to start generating revenue.