Writing financial goals
The key to goal setting is being very specific and writing them down. Keep your goals in various places as a reminder. It’s a practical way to help keep you motivated and focused on attaining them.
Specifically defining the goal and adding a time frame is important when writing a list of business goals. Carefully consider the costs and benefits involved when writing financial goals. Think about and be specific on time frames to help attain your written goals. A good rule of thumb is to define what your short, medium and long-term goals are. Short-term goals are typically within the next 12 months or so. Medium-term are about a year to five years and anything longer than five years would be considered a long-term goal. Many business owners choose to get outside advice or counsel from a financial professional on their business finances and goal setting.
Examples of financial goals
Here are a few examples of some business financial goals with specific time frames defined.
- Reduce business costs by year end. Examples might include reducing my debt, using technology differently and changing my operations model.
- Hire an employee this year. Examples of this short-term goal might be hiring a part time support person or a full time contractor to help with clients and jobs I can’t complete myself.
- Increase traffic on my business website in 30 days. Examples of this short-term goal might include finding ways to attract more potential customers, increasing potential sales and improving my website to attract more traffic.
- Double my revenue within two years. Examples of this medium-term goal may include increasing sales by raising prices, gaining more clients and reducing overhead costs.
- Increase my retirement fund contributions within three years. This example of a medium-term goal may include setting up a new account, evaluating my existing retirement funds or looking at my fund allocations and making adjustments.
- Upgrade space and equipment in five years. Examples of this long-term goal include buying or leasing office space, upgrading equipment or buying a vehicle.
Your chapter 2 checklist
- Watch the Your Financial Goals video,
- Financial Foundation for Freelancers worksheet, and
- Write down your financial goals.
Continue with the next chapter, Budgeting for you and your business.