Have you ever felt very shameful, when you set a goal to make a certain amount of revenue in your business and did not make it, even though you did your best? I have felt this way whenever I did not reach my revenue goal. Apart from causing an impediment in the growth of your business,it can even put you in doubt to stay in the Entrepreneurial game. It is the choice of thoughts that can help you stay in the Entrepreneurial game or quit.
When we are Self employed or start a business, we get so excited, that we tend to think only of REVENUE and attach our emotions to revenue ONLY. We tend to shut down our logical brain and seldom set a goal for expenses OR Net-profit, as the thought of expenses may not seem so exciting OR the thought of figuring out Net Profit may seem overwhelming.
Let us take a hypothetical example of Ann. Please don’t shy away from numbers. I promise, you will feel more empowered, when you take some time to compare your current situation to this hypothetical case. Ann set a goal of creating a revenue of $50000 per annum in the first year of her business. She never set any goal for her expenses OR Net Profit.:
In the first year, she achieved her revenue goal of $50000 and made $30000 in Net Profits, which works out to 60 percent of her Revenue.. She was very happy! However she was mindful of the fact that due to slow economy and her time commitments to her family, it would not be realistic to set a higher goal for the second year.
In the second year, her Revenue Goal was $50000. She made $30000 in revenue and $22000 in Net Profit (66% of revenue).
Considering her realistic business and family commitments, she set a realistic goal to make $30000 only in the third year. She also committed to invest in training and creating systems to help grow her business. Even though she tried her best, she made only $5000 in revenue and $2000 in profit (40% of her revenue).
I believe in thinking BIG and setting bigger goals. Hence the above example of setting goal may seem contradictory to what I believe. I want you to be with me here. The reason I am sharing this example, is that-Many Self employed/Start up businesses are facing this true situation. We should dream BIG, but the goal, must be SMART (Specific, Measurable, Achievable, REALISTIC, Have Timeline). In this case Ann can choose to interpret her business situation in ONE of the two ways:
I have only achieved my Goal the first year and thereafter my revenue has gone down drastically. Even though I have been realistic and set lesser goal, I have still not made it. Business is not for me. I will quit.
I choose to acknowledge that I have achieved 100 percent of my Revenue Goal in my first year, 66 percent of my Revenue goal in the second year and 16 percent of my set revenue goal in third year.I have achieved Net profit ( 60 percent of revenue) in first year and 66 percent of revenue in second year and 40 percent in third year. I choose to acknowledge myself for taking appropriate timely steps to pay all my bills and loan payments and taxes in full and in time. While being in the Entrepreneurial game, I have learned and developed, Copy writing skills, publishing, public speaking, blogging, accounting and Social Networking skills. I could spend quality time with my family and take regular family vacations. Going forward, I choose to create both revenue and Net Profit goal, stay in the Entrepreneurial game and strive to become better.
Which one would you go with? Personally I would go with choice #2
Conclusion:1. You want to explore the ENTREPRENEUR in YOU and hence you are in the Entrepreneurial game. It is OK to get excited with an idea and just make a beginning.
2. Be realistic. Keep doing course correction.It is a process and not an end result.
3. You thoughts will become your reality. Develop the habit of asking yourself-“How can I choose to view this situation in an empowering way, learn and become better and not quit”?
Lalitha Brahma helps Small Business Owners, consultants increase their bottom line by understanding their needs, inspiring and moving them to ACTION. For her FREE Powerful tips visit http://www.elbeeservicesllc.com. To receive educative series on how to protect your family and GROW you business with Peace of mind go to http://www.lalithabrahma.com