Episode description
In this podcast, I talk about my favourite topic, Money! I believe it’s really important for creative business owners to understand the money in their business. Knowing your numbers will give you freedom and confidence. Ultimately, it's the money that helps us live the life we want to live. Most creatives have started a business because of a lifestyle change and it’s the money in our business that will help us achieve that. I talk through 6 practical steps you need to take to understanding and making more money in your business. Here are the 6 steps:
- Highlight 6 months bank transactions - highlight and categorise every transaction into Job Costs, Overheads or Income.
- Calculate totals - what is the total for each category you highlighted?
- Calculate profit - what is your overall profit?
- Determine percentages - what percentage can you put to each category? For example, 30% job costs, 20% overheads and 50% profit.
- Evaluate your percentages - What percentage are you taking away as profit? Are you spending enough on your business or are you spending everything on job costs?
- Determine your needs - how much do you actually need to make? How can you increase your price or decrease your spending to reach that goal?
I go into the details of each step in the podcast, but you can also download the freebie that outlines exactly what steps you need to take to determine whether you should be increasing your price in your business.