Setting SMART Goals
When setting goals, use the SMART acronym (specific, measurable, attainable, relevant, and time-bound). This acronym helps you identify and achieve your goals, increase your motivation, and keep your teammates on the same page. While some goals may not meet all of the SMART criteria, you should set them anyway. For example, if you want to save money to start a business, setting SMART goals to save for it is an important part of your business plan.
Organizing expenses into one-time and month-to-month categories will make it easier to plan your expenses. Identify one-time expenses, such as business equipment or a logo designer’s fees, as well as monthly expenses, such as rent, utilities, and employee salaries. Many of these expenses can be deducted for tax purposes, reducing the overall tax bill. Monthly expenses, on the other hand, are more variable, and aren’t as predictable.
Having An Emergency Fund
Building an emergency fund is one of the most important steps for any business owner. You don’t want to be caught off guard and without enough cash to cover unexpected expenses. The best way to build a fund is to set small, realistic goals and stick to them. Start saving at least three months’ worth of expenses and then aim for a higher target. Over time, saving will become a habit and positive motivation will propel you to your larger goal.