Create More Income Month - Chapter 1

Are you leaving money on the table?

We are talking to the business owners, independent contractors, mompreneurs and all women solopreneurs this month. As the summer is over and the families are back home and ready for the new school year, many entrepreneurs choose September to refocus and recommit to their business goals. We will be focused on business growth this month, so we can all grow our businesses together.

This first week, I would like to talk about business growth by developing new streams of income. This can apply to you if you own a business and are looking to develop new revenue streams, or if you have a job and are considering a side hustle to increase your income. Whether you have a business already or just considering one, you need to have a goal that motivates you to do the work, so you can succeed. 

Once you have a goal, you are set to start working on your business. The next step is to make a plan for it. If you already have a business, you probably already did this, but if your business is still just an idea in your mind (or on paper), you need to give some deep thought, put on paper and then make clear what your values are - personal and in business. You write down your business vision and mission; they should be reflected in your business goals. 

This will help you stay focused when you feel an inkling of the S.O.S. (shining object syndrome) - a condition quite common to the entrepreneurs. Too many times we all start new paths in business because we think that the new idea can be our next big success, because we get excited for the new opportunity and because we want to try multiple things when we think more stuff done will bring more money. While these ideas and opinions are not necessarily a bad things and are not necessarily wrong, they are not conducive to high levels of income. 

The best way I can illustrate this point is to paint a picture: if the income is in a bag in the middle and each of the ways you choose to get the money to come to you is a direction you pull the bag, you will not be able to drag the bag in any direction. You will move a few steps in one direction and then another few steps in a different direction, but will never make great progress in any direction.

If you focus on what thing and make progress in that direction, then you move the money bag in that direction for a while. You can always pivot and make changes in your business, then you will make progress in that other direction. You can add as make revenue streams as you want, as many times as you want, as long as you are committed to each new direction at the time that you are working on it.

The best way to make sure you stay true to your values is to ensure your actions are aligned with your mission and vision. As long as you focus on the goals that contribute to your mission, your actions will fall in line. Your actions will lead the money bag in the direction you are going. 

Let's go into more ideas next week.

Financial Serenity Month - Chapter 3

Last week we discussed about the retirement ideas that pertain to entrepreneurs. This week we will also include the employees in our conversation. I would like to share some scary statistics, with the hope that you take them seriously and act on the information we are sharing here.

For someone who has a job, the retirement planning is set in place by the employer, and all they have to do is follow the system. Even with all the steps already planned, a large number of Americans do not take advantage of the offers. And the scary part is that among solopreneurs and the self-employed (without the path already designed for them) the numbers are even higher.

There are some really scary statistics I want to share: only 2 out of 3 Americans save for retirement currently (according to a statistic from 2017). And if this is not bad enough, more than half of the ones who save, have less than $10,000 in their retirement account. Yet, surveys say that 51% of Americans feel they are saving enough. The article I was reading was stating that “Transamerica found that only about half of workers feel they are building a nest egg that will sustain them in retirement” (The Motley Fool, April, 16^th, 2017). While the article implies there are not enough people who are comfortable with their level of savings, my first reaction is: how can that many people even feel they have enough? Reading the statistics, I realized that only about 30% of the U.S. population has more than $10,000 in retirement savings. And with that being the case, where does the extra 21% of people get their feelings from? Did I scare you yet?

As entrepreneurs, solopreneurs and self-employed increase in numbers all across America, this is a unique opportunity for them to change these statistics. I’m not saying it is easy but it is simple: there is no other way to be and feel secure in retirement. Even employees who see their retirement coming from the employer diminish, have to also set aside money. Entrepreneurs don’t even have that luxury. There is no cushion that can provide a feeling of security. For those who can sell their business, there may be a stress-free retirement in sight. But the majority of small businesses – the solopreneurs and the home-based businesses – will probably never have that option.

If you own a sellable business and decide to sell it, the first thing you need to find out is the value. And you need to understand that the value you think it is worth and the amount of money that someone is willing to pay may be two different things – as is most often the case. After having a valuation done by a third party, such as a CPA, the next best step is talking to a financial specialist who can educate the seller in a few options – financial and insurance products – that can be set up by the buyer in order to increase the amount received by the seller through this transaction. This is a way to increase either the retirement income or the family protection, or both.

When selling the business is not an option – or if you want to have more money in retirement to ensure enough income – the best idea is to start saving as early as possible. Now, I understand that most entrepreneurs reinvest the majority of their income in order to grow their business. Even so, retirement savings must be a priority. And if the 10% that financial advisors advocate sounds like too huge and intimidating of a number, it is OK to start with a lower percentage. The main goal is to start. You can always increase the amount. Plus, something saved is always better than nothing saved. One of my favorite quotes is a Chinese proverb: “the best time to plant a tree was 20 years ago. The next best time is now.”

Saving – for retirement, for a big-ticket item, or for a rainy day – works the same way. The younger you are or the earlier you start saving, the more time you have for it to grow.  But it is never too late to start, and you are always better off starting to save NOW than Never, or even Later.

Financial Serenity Month - Chapter 2

Let's continue our conversation regarding financial serenity with some ideas for business owners this week.

For the business owners who want to grow their business to the point where it becomes their retirement vehicle, while reinvesting all their earnings back in the business might seem like the smart thing to do, it may prove a disastrous financial sacrifice in the long run. According to the sensible principle of diversification, you should never put all your eggs in one basket; and when that basket is your own business, especially if it is a service-based business that relies heavily on you, that may be a very dangerous path to follow.

A wiser decision may be to save some of the money earned through the business in a retirement account – either pre-tax or after-tax – that will accumulate over time and be there when the business owner is ready to retire. Besides the tax advantages of this plan, the main benefit consists in the fact that the retirement money is not directly tied into the business, and it is protected from any hardships that the business may encounter, plus it will be available when the owner of the business wants or has to retire.

Most people are familiar with the term “compound interest” but that is usually in an abstract sense; they are familiar with the fact that it is important, that it can work in one’s favor or against them. And for the majority of people, that is where their knowledge gets blurry. They do not understand that the more time they have, the more they can benefit from the effects of the compound interest. 

Some of the most frequently used examples show friends who save for retirement at different times. While one starts in their 20’s and only saves for about 10 years, the other starts saving at the same time the first one stops and continues saving until retirement age. Even so, the first friend ends up with more money at the time of retirement – depending on the amounts used and the interest percentage used in the example, the difference can be from a few tens of thousands to some hundreds of thousands.

The difference between the two friends comes not from the amount saved but from the time they invest. The more time you give the compound interest to work for you, the more your savings grow, while the interest gains interest upon interest.

I’m not going to get on my soap box lamenting the lack of financial education from the US school system. Even though it is important to raise the level of understanding for all the people growing up in an economy so very different from the one experienced by their parents and grandparents. While the good news is that more and more people start businesses and/or become self-employed, the bad news is that these people’s financial security and safe present and future is in their own hands, since their employers are no longer present to provide the benefits that will take care of them in the long run.

Most solopreneurs make the decision to put all of their income back into the business in order to build the business. They think that it will all pay off in the future because they will make more money and, in the end, can sell the business. Unfortunately, most of the time, this is not a solid exit strategy. Nobody wants to buy your job. Therefore, the only way to have a sellable business is by building systems that can be followed and duplicated.

For the business owners reading these lines, I would like to suggest a great book that gave me a lot to think about, and made me tweak a few things in the cash flow of my company: "Profit First" by Mike Michalowitz. He uses the principle of "pay yourself first" - so often used in personal finances - and adapts it to the set up of a company. I would encourage anyone who wants to find their financial serenity, to read Mike's book and apply the knowledge he shares. It will change your life - literally!

And if you are an employee, don't despair, there is also a path to financial serenity for you! We will talk about it next week.

Planning Your Way to Success, What are your Career Goals

Successful people have goals, but even if you have a career or are already in a professional position, you may struggle on occasion with progressing along a path upwards in your career. It can be easy to feel suffocated, confined, or lacking direction when it comes to navigating through a career. To keep from veering off track, it is helpful to set up career goals. Career goals will represent objectives, benchmarks, and milestones in your career. Let’s take a look at some beneficial career goal examples to set you up for success with your chosen field. 

Can you schedule your career? Are there specific achievements you need to achieve in your 20s/30s/40s/50s to accomplish your dreams? Yes and no.

How to Set A Career Goal

Before you set a career goal, there are few things that you should know about goals, as they are set on various levels.

1. First, decide what you want to do, accomplish, or be in life.
2. Secondly, split your larger goal into smaller and more achievable goals or targets that you have to achieve.  This will make accomplishing your goal easier to manage and will help streamline the process into reaching your ultimate goal.
3. Finally, you will want to formulate and develop a proper plan for your goal.  It can be best to establish a step by step plan that will enable you to start working towards achieving it.

6 Career Goal Examples

Increase Performance Metrics:  Certain industries and companies use performance metrics when they evaluate an employee’s performance, productivity, and effectiveness levels.  Metric numbers generally measure things such as customer satisfaction, organization performance, employee competence, and cost management.  Metrics are usually measured on a weekly basis, but they can be measured daily as well.  A good career goal could be to increase your performance metrics, which will help show the value that you bring as an employee to the organization or company that you are working for.

Earn a Promotion:  It is always a good feeling to get promoted, and a promotion involves careful planning, commitment, and execution on your part as an employee.  For instance, you may need to: do additional work, take on more projects, develop relationships with other department members, and update your resume.  A promotion will generally be a long term goal that you can work towards overtime.

Earn a Management Position:  After you have been working with a company or business for awhile, you might have an itch to advance in your position.  If your career goal is to earn a management or an executive position, your goal could range from lasting 6 months, to 5 to 10 years depending on the field that you are in.  This type of career goal can require a series of short term goals to help you reach the position you desire.

Start a Business:  A lot of people associate success with branching out on their own, and a viable career goal, in that case, can be to start your own business or open your own practice to become your own boss.  Many people, generally between the ages of 18 and 34 have the desire to start a business if they have not already started one.  When opening your own business, it can be helpful to outline a series of short term goals that can help you get to where you need to be.

Get a Job:  For many people, especially in this economy, an example of a career goal might be obtaining employment and finding a career.  If you are looking to find employment, there are plenty of short term goals that you can develop that can be completed before you reach your final goal of obtaining a career.  Remember to be patient in trying to find a job, as it can be a long but rewarding process.

Earn A Degree or Certificate:  Earning a degree or a certificate is a great step into jump starting you career goals and putting you on a path towards success.  Most careers require that the person has specific knowledge, education, or a specific degree when it comes to furthering or advancing in their career.  Once you are able to obtain proper education, you can look to increasing your career goal options.

More Career Goal Examples

• Switch jobs to one that you know you will enjoy more.
• Identify personal boundaries at work and know what you should do to make your day more productive and manageable.
• Communicate more effectively at work.
• Feel happier and more positive during your workday.
• Develop more friendships at work and try to be less competitive.
• Double your sales or productivity, depending on your job.
• Pick up and learn a new skill.
• Set your eye on a specific award at work and go for it.
• Be more organized with your daily goals.
• De-clutter your work space and keep yourself organized throughout the week.
• Partner up with another person to increase productivity.
• Find a mentor or become a mentor.
• Be known as an expert in a certain field or area.
• Manage your clients better and more efficiently.
• Create a website, promotional material, or social media page for your business.
• Improve company profitability by a certain percentage.
• Delegate work and tasks more effectively to increase your own productivity.
• Send thank you notes to staff, clients, and managers.
• Take a vacation and log off from work to fresh your mind.
• Learn how to network better and attend networking events.
• Learn how to reduce work hours without compromising productivity.
• Go after the career of your dreams to find work in a field that does not feel like a job.
• Stop micromanaging your staff.

• Reduce personal or business expenses by a certain percentage.
• Join Toastmasters to improve your presentation and speaking skills.
• Delete old emails and old files from computer to make yourself more organized.
• Learn how to say “NO” politely at work.
• Learn how to under-promise and over-deliver with clients or managers to surprise them.
• Develop relationships with coworkers and clients to make work seem more enjoyable.
• Become more creative and break out of your rut.
• Build a personal brand or an online website or blog.
• Do things that will make you feel more energized at work.
• Ask for a raise.
• Update your resume and cover letter.
• Send out a certain number of resumes each day to potential employers if you are looking for a job.
• Ask your boss for more responsibility or more clients at work.
• Ask to be trained more for skills in a new department.

Tips for Setting A Career Goal

1. Know your strengths and weaknesses.  There are probably certain areas of life where you can better excel professional than others.
2. Know what you overall goal is for your career.  Ask yourself questions such as, “Where do I want to be in “X” number of years?”  This will help you know where your life is going and how it will intersect with your career.  There may be other goals that you will be interested in pursuing with time, so develop a time frame for your goal.
3. Know the steps you will need to take to achieve your goal in “X” amount of time.  Consider any road blocks you may face and think about how you will overcome them.
4. Be sure to measure the progress of your goal each week or month.  This will help keep you motivated and provide you with a sense of accomplishment.

Plan Accordingly

A career is one of the most important things in your life, and with the properly planned career and career goals, you will be able to achieve what you want from your career in the most efficient way possible. 

Contact us for help in defining your career goals. I will be excited to learn of what the future holds for you!

Thanks to udemy and their blog of the amazing research!