The Reality Check
You’re on the job site before the sun rises and after it sets, but does your paycheck reflect that? It’s a common predicament in the contracting world: immense effort without a satisfying payoff. If you’re feeling outpaced financially, wondering what secret ingredient others have that you don’t, it’s time for a reality check. There’s no magic, but there is a method to the madness—starting with goal setting.
Understanding the Personal Impact
The consequences of financial underperformance reach beyond your business’s ledger. It’s the family time sacrificed, the upgrades to your services you can’t quite justify, and the peace of mind that seems just out of reach. We’re talking about a quality of life that you’re working towards but not yet living.
Andrew’s Story: A Familiar Struggle
Andrew’s journey might echo your own—a contractor putting in the hours but not seeing the profits. He was stuck in a cycle of marginal gains and stagnant growth, looking for the elusive ‘more’ that he felt was overdue.
The Solution: Defining Financial Success
Success starts with a vision. For Andrew, the breakthrough came when he stopped to articulate what he actually wanted from his business. How much revenue did he aim to bring in? What were his targets for Gross and Net Profit Margins? What was the salary he desired for himself? And what cash reserves did he need to maintain for stability and growth?
Setting Your Financial Goals
- Revenue: This isn’t about shooting in the dark. Determine a revenue target that reflects your ambition and the reality of the market.
- Gross Profit Margin: What percentage of your revenue remains after direct costs? Pin this down—it’s your workhorse for profit.
- Net Profit Margin: After all expenses, what should your profit margin look like? This is your business’s health check.
- Personal Salary: Pay yourself what you’re worth. Define a salary that compensates for your expertise and sweat equity.
- Cash Reserves: Set a goal for reserves to cushion your business against the unexpected and fund future growth.
Your Blueprint for Financial Growth
This isn’t about diving into the nitty-gritty of budgets or tracking mechanisms—not yet. It’s about establishing the cornerstones of financial achievement. Just as you wouldn’t start a project without knowing what you’re building, you can’t grow your income without clear financial targets.
Your Call to Action
Start crafting your blueprint for financial success now. Watch the video to get a more in-depth look into how to tackle this planning process. Then reflect on these five financial goal categories. It’s the first step toward commanding the profits you deserve. Andrew did it, and his story isn’t an outlier—it’s a testament to the power of intention.
Ready to set your financial goals? My Budget Goals Worksheet is your first tool. It’s simple, and direct, and will lay the groundwork for the profitable year ahead.
Grab the Budget Goals Worksheet and plant your flag in the ground. It’s time your financial rewards matched your efforts. Let’s build that success, starting today. And make sure to grab my guide “How to Read Financial Statement” which includes benchmarks for industry standards on things like gross and net profit margin, as well as cash reserves!