“It’s good to have money and the things that money can buy, but it’s good, too, to check up once in a while and make sure that you haven’t lost the things that money can’t buy.”
George Lorimer, editor
Starting and growing a business is no easy feat. It involves numerous challenges, and while the primary focus is often on revenue and profit, there’s another equally important aspect that sometimes gets overlooked: Personal happiness.
Achieving financial stability in your business is crucial, but not at the expense of your wellbeing and time with your loved ones. Do you agree?
In this blog, I’ll share insights into balancing financial goals with personal happiness based on my own journey and experience.
The importance of happiness in business
In the early days of my entrepreneurial journey, I was laser-focused on revenue. Every day was about hitting that big number, and eventually, I did. But here’s the catch – I was miserable.
I was tired, stressed, and felt like I was missing out on life. The business was thriving financially, but personally, I was far from it.
This led me to a realisation: Business success isn’t just about the numbers.
Sure, revenue is important, but so is your happiness and quality of life. I needed to reevaluate my approach to business. It was time to ensure that while my business was financially stable, it also allowed me to live the lifestyle I wanted to build.
Here are my best tips so you can finish the year strong, and the new year even stronger!
1. Reduce expenses to improve your income goal
The first step in this journey was to cut down on non-essential expenses. It sounds simple, but it’s surprising how many tools and resources we pay for without actively using them.
I started by conducting an audit of all my business expenses and realised that there were quite a few areas where I was spending unnecessarily.
For example, I discovered that I was using only about 30 per cent of the features of a particular software tool I was paying for. This was a clear indicator that I could either switch to a cheaper plan or find a more cost-effective alternative.
Reducing such expenses can significantly improve your income goal and, more importantly, leave more in the business for other essential operations or even as your own take-home pay.
2. Increase the value of your offer
The next strategy was to increase the value of what I was offering. This didn’t mean putting in more time and effort to create new products or services. Instead, it was about repackaging existing offers to add more value.
For example, I have a service called, Business Systematise and Strategy Planning that was selling well, but I realised that I could make it even more attractive by adding a few extras.
So I included a free client portal area, action plan, follow-up call to discuss our recommendations and actions, free chat and/or email support, and some exclusive resources. This added tremendous value to the service without requiring a lot of extra work on my part.
As a result, I was able to increase the price of the service, which in turn increased my revenue. It also made my offer more appealing, which attracted more customers.
3. Manage your spending
Another critical aspect of financial stability is managing your spending. I’ve seen some businesses make the mistake of spending money as soon as it hits their bank account.
Whether it’s for coaching, courses, or outsourcing, there’s often no plan to prioritise spending, which can lead to unnecessary expenses.
In my case, I implemented a system to manage my finances better. I set aside a percentage of my income for savings, taxes, and business reinvestment.
This not only helped me avoid impulsive spending but also ensured that I always had funds set aside for important business needs.
4. Pay yourself
One of the most important lessons I learned during this period was the significance of paying myself.
Each month, I started taking 40 per cent of my business revenue as my personal income. This wasn’t a want – it was a need. I wanted to benefit my family and build the lifestyle we desired.
It’s easy to get caught up in reinvesting everything back into the business, especially in the growth phase.
But it’s crucial to strike a balance. Paying yourself not only provides you with a sense of reward for your hard work, but also helps maintain your motivation and passion for the business.
The impact of making these changes
Implementing these changes had a profound impact on both my business and personal life. Financially, the business continued to grow and thrive.
But more importantly, I was happier and more fulfilled.
I had more time to spend with my family, pursue personal interests, and enjoy life outside of work.
These changes also led to a more sustainable and resilient business. By reducing unnecessary expenses, managing spending wisely, and ensuring that I was adequately compensated, the business was in a much better position to weather any future challenges.
More tips and tricks to reaching financial stability in business
In your pursuit of financial stability, it’s vital to strike a balance that also caters to your personal wellbeing and happiness as well.
Here are some more practical strategies for you to consider.
Setting financial goals
Goals are the driving force behind financial success – and I’ll discuss setting realistic goals in the next blog.
But to get started, ask yourself, what do you want to achieve in terms of revenue, profit margins, or business expansion?
Break these down into short-term and long-term objectives, and ensure your goals are SMART – Specific, Measurable, Achievable, Relevant and Time-bound.
Then regularly review and adjust your goals based on your business performance and market changes.
Clear financial goals serve as a roadmap, guiding your business decisions and keeping you focused on achieving financial stability while maintaining personal happiness.
Investing back into your business
Allocating funds back into your business is essential for growth and sustainability – but it shouldn’t be done if you’re not paying yourself. Remember you are your greatest asset. Any investing should be done strategically.
Prioritise areas that promise a good return on investment. This could be upgrading your technology, expanding your product line, or investing in marketing strategies that have proven successful in the past.
Training and development for yourself and your team can also be a wise investment to enhance skills and improve productivity.
But always ensure the investment aligns with your business goals and overall strategy.
Exploring new revenue streams
Diversifying your income is key to financial stability. This could mean introducing new products or services that complement your existing offerings.
You might also consider expanding into new markets or segments.
Partnerships and collaborations with other businesses can open up opportunities for joint ventures and shared revenue streams. While another avenue to explore is online channels, such as e-commerce or affiliate marketing.
Common pitfalls to avoid in business
When you’re on the path to financial stability in your business, it’s important to be aware of common financial mistakes that can derail your journey.
One of the key pitfalls to steer clear of is overestimating future revenues. While optimism is important, it’s essential to stay grounded in reality when planning your finances.
Failing to separate business and personal expenses can also lead to financial confusion and problems come tax time.
While underestimating the importance of emergency funds can leave you financially vulnerable in unforeseen situations.
Financial stability shouldn’t be at the expense of your happiness
Business is never perfect.
Achieving financial stability in your business is undoubtedly crucial, but it shouldn’t come at the cost of your personal happiness.
It’s about finding the right balance between financial goals and personal wellbeing.
The journey might involve reevaluating your business operations, cutting down on non-essential expenses, increasing the value of your offers, managing spending more effectively, and seeking professional help.
Remember, a financially fit and strong business isn’t just about the revenue, it’s also about ensuring you can enjoy the fruits of your labour and live the life you want to build.
If you find yourself struggling with achieving this balance, reach out for help and guidance.
An Online Business Manager (OBM) and Virtual Assistant (VA) can help you with becoming an efficient and lean business, so you can reap the rewards – both financially and personally.
