In the beginning,  our business planning is focused on just making sales. To almost anyone. We are excited about the new venture, the logo and the website, and sometimes we haven’t really given a second thought to our pricing and profit plan, because we just didn’t. We go with what the market charges, what feels good as our first price point.

Now we are a little bit into being a business owner and may have faced a few financial bumps in the road. We are making some money, maybe not keeping any, but we are cruising along and feeling a mix of frustration and accomplishment. The business planning tumbles. We all go through this phase.

The next thing we know, we are busy and feeling overwhelmed, not sure how to get through this bottleneck of growth, and maybe thinking about the business finances for the first time. I mean really thinking about them. Like you need a system. A Plan. You don’t want to worry month to month anymore and you need something to change.

This is when you need to create a profit plan. You need to put it on paper, how much you are going to make, how much you are going to keep, and what the heck you are going to do with it. This plan will help you make solid financial and business decisions. Here are the top three reasons to make a profit plan for 2021:

You aren’t supposed to just break even.

You are in business to make money. And if you aren’t making enough or you aren’t keeping any, you may have a pricing mistake, or perhaps your expenses are high. Whatever the root of your financial issue, know that you are in business to have an income. Really make money. 

Profit is impact. You need to make it to make a difference.

Ready to hire that new team member? How about committing to a monthly donation to your favorite cause? Joining a service-based organization in your community? Guess what. All these things take profit.  You won’t be able to make a sustainable impact in your business, community, or society without having profit for these things.

You need it to make growth decisions.

 When exactly are you going to be able to add that new service or hire that virtual assistant? Your general business planning and profit plan can help you know when you will have the cash to grow, when you need to invest, and it will help you decide from the choices in front of you and your business.

With your plan on paper, really well thought out and accurately reflecting your current and future business, you can make decisions with less stress and more confidence.

If you need to learn how to create an income profit plan for your business,  join me for the Q1 2021 income and profit planning intensive next month.  It’s three hours of designing your income and profit strategies through March 2021. Watch for the Entre Money Coach Black Friday Offer- you can get the planning intensive for 75% off… only $47.00!