Every week as SmallBizLady, I conduct interviews with experts on my Twitter talk show #SmallBizChat. The show takes place every Wednesday on Twitter from 8-9 pm ET. This is excerpted from my recent interview with Simone Craig, CEO of SRC International. She has built a solid business advising women entrepreneurs on how to become powerful and create thriving businesses that they love. For more info: www.simonecraig.com
SmallBizLady: What is the first step to hitting your financial target each month?
Simone Craig: The first step is to create a financial structure from which your financial goal will be generated. I suggest creating a 1 Month forecast that has 3 sections: (1) in the first section, list your Income goal for the month, (2) in the second section, list your expected expenses for that month, (3) in the third section, subtract your expenses from your Income goal to calculate your expected Net Profit for the month.
SmallBizLady: Once we have structure in place, then what’s next??
Simone Craig: The next and second step towards hitting your financial target each month is to create a financial strategy that reflects your Income goal. Essentially, a financial strategy is a breakdown of your products and/or services that you will sell in 1 month to achieve your 1-month financial goal.
SmallBizLady: How is mindset a part of the equation for hitting your financial target?
Simone Craig: It boils down to the 80-20 rule. Studies show that 80% of our success as entrepreneurs is due to our mindset – how we think and feel about ourselves, our business and about money. It’s a vital component to financial success. The other 20% is strategy.
SmallBizLady: Is having a successful money mindset about thinking positively?
Simone Craig: Somewhat. Positive thinking is helpful for sure. It’s more constructive for your business than negative thinking. But our feelings are more powerful than your thoughts. Feelings outweigh thoughts. Successful money mindset is based on a powerful and positive overall feeling about yourself, your business and your money. When you can start running your business from an overall positive feeling, your cash flow will increase with more consistency.
SmallBizLady: How do you create a financial strategy for your business?
Simone Craig: A financial strategy is the means through which you achieve your income goal, i.e., it is very exact and specific. A very effective way to get clear on your financial strategy is to ask yourself the following questions:
- What products and/or services will I sell to reach my Income goal in 1 month?
- How many products and at what price point will I sell to reach my goal in 1 month?
- How many service packages and at what price point will I sell to reach my goal in 1 month?
SmallBizLady: Can you give an example of a financial strategy?
Simone Craig: Sure. Let’s say my Income goal for the month is $10,000. An example of a financial strategy would be the following: Sell 1 $5,000 coaching package @ $5,000, Sell 5 $1,000 digital products total of $5,000, totaling $10,000 for the month. So essentially, selling 1 $5,000 coaching package and 5 $1,000 digital products is a financial strategy to achieve your Income goal of $10,000.
SmallBizLady: How then does mindset come into play with a financial strategy?
Simone Craig: Mindset helps you to stay focused on your Income goal without getting distracted by doubts, and other shiny objects that may take you off track. Ideally, to achieve a short-term financial goal, like 1 month, I highly recommend a daily mindset practice.
SmallBizLady: What mindset practices do you recommended to hit a financial target?
- Get clear on your PPK, which stands for Personal Prosperity Key. Your PPK is the positive feeling that hitting your financial target this month will give you.
- Use Visualization. Before going to sleep at night, visualize yourself successfully hitting your financial goal. Especially focus on how you are going to feel when your success comes. Then, go to sleep.
- Keep a Journal Bedside. When you wake, focus on how to take action, make a list of five things you’ll do that day to meet your financial goal. Then move forward you’re your task list to hitting your monthly goal.
- Affirm Your Goal: ‘Today I’ll see evidence to successfully hit my financial target this month.’ Say it with power and passion.
SmallBizLady: How often do you recommend doing mindset work during the month?
Simone Craig: Daily – mindset work keeps you thinking/feeling positively towards a 1-month goal, which is 80% achievement & 20% physical. The most valuable question an entrepreneur should ask themselves when they wake is, “How am I feeling about myself, money & business today?” If it’s a good feeling, awesome. Keep going. If it’s not, stop. Go for a walk or run, call a mentor or fellow business owner to give you a pep talk, go read your recommendations for clients. Find a way to feel better in that moment, then continue with your day and work, executing on a clear and focused financial strategy.
SmallBizLady: What’s the best approach to monitoring your financial performance during the month?
Simone Craig: What you focus on expands. Track your cash inflows (income) and outflows (expenses) in a financial forecast spreadsheet, every day. Once you do that, watch your cash flow expand during the month, and hit you’ll hit your financial target!
SmallBizLady: What happens If someone follows your suggestions, but they fall short of reaching their goal? Any advice for them?
Simone Craig: If you follow the suggestions and did not achieve your financial goal in 1 month, it’s likely you like have a money block or you don’t have an effective value proposition for your target customer. A money block is a negative association that you have with yourself, your business or making money. It’s a consistent pattern of events in your business and life, that seem to keep getting in the way of you being successful in your business. Talk with your customers and make sure you know why they buy from you. It might also be a perfect time to reach out to a business coach who can help you release what’s getting in the way of you hitting your financial goals.
If you found this interview helpful, join us on Wednesdays 8-9 pm ET; follow @SmallBizChat on Twitter.
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