Financial Goal Setting

If there’s one topic bus owners don’t like to talk specifics about with each other, it’s finances. Sure, we make jokes and comments about collecting money, speak in general terms about profit, and how the summer months are harder, but we never go deeper.

What I’ve learned as a Financial Coach is that most people don’t budget their personal finances let alone their business finances. Many of us smile and nod when terms are mentioned that we don’t understand, all the while, we keep putting our QuickBooks reconciliations on the back burner. And, the same goes for those of us with knowledge and experience in finance and accounting. While it’s one thing to know what to do, it’s another entirely to do the work, set goals and create an operating budget that guides your decision making.

So what can we do? How do we turn this around and do better?

I suggest starting with a simple list of all the things that need our attention, words or concepts we don’t know, elements of software we aren’t clear on, and how much money will flow through our business on a given month. Next, prioritize one item and get it taken care of, put it on your calendar and book a meeting with yourself to work on it.

Next, examine your business financial goals. Do you want to increase your profit margin, lower expenses, increase salaries, invest in new equipment, or save for a big move? Once you’ve decided on your goals, take the time to write a plan and assign a due date for each part of your plan. Book the meeting with your accountant, meet with your managers, schedule a block of time to enter all those receipts, call your insurance broker, and open up your QuickBooks account and see the last time you reconciled an account. Now, get to work on implementing your plan, use your plan to work towards your goal. Use your goal to motivate and inspire you to reach new levels.

Lastly, let’s all stop playing small. Instead of using phrases like “I hope we can”, or “maybe one day,” change the language to take the power back and the control to make a difference. Try “when we reach this, then, we will do that” or “ we have big goals because we have big plans, let’s work together to do this.” Instead of trying to just make as much money as you did the prior year, stretch yourself to see what’s possible. Tell your team what your big goals are so that they can help support you and work towards those goals alongside of you, understanding the reason for what is being done in the business. Instead of thinking that it’s impossible for us to get a raise or take a vacation, put your pay and time off substitute teachers or office staff into the budget to make it happen.

If you are new to setting financial goals or creating a budget for your personal or business finances, no that it can take at least 90 days to get the hang of it to figure out what you’re doing and how to get dialed in to your own situation. Give yourself grace and know that you’re going to learn and make mistakes along the way. And also remember that you don’t know how to do something until you’ve done it.