Yesterday I told you to analyze your data, right? Look at all of the data for each of your pillars and figure out what you need to start, stop, or keep. Today I want to talk about your 2020 financial recap. You know, if you are still working your day job, you are bootstrapping your business. Which means you are paying for your business out of your own pocket. You don’t have money to throw away, which means you really have to be honest with yourself about your financials.
Do you know how much money you invested into your business last year? Can you sustain that investment this year? How much of that investment in 2020 was a good investment that strengthened the foundation of your business and how much of it was wasted buying a tool you didn’t need or hiring someone who didn’t work out?
Look at it. Acknowledge it. See it. The point of doing this today is to learn from it. You can’t learn from what you don’t assess or try to understand. To understand what happened in your business financials in 2020.
Make some notes. If you invested in the wrong tools last year, how will you ensure that doesn’t happen this year? What process will you put into place to properly vet the tools before you buy them for example? How will you vet potential vendors?
If you bought annual subscriptions to various memberships or resources, when will those come due in 2021?
The point is this, I want you to assess all of your 2020 financials, make notes, create plans to show you learned from those actions, and then I want you to create a financial roadmap for 2021. I’m sure you already have revenue targets, but I’m talking about adding into that your expenses as well as your personal contributions. How much will they be? When will those personal contributions stop for example?
Create your total financial picture today.