1-Financial-Goals.pdf - SheMeansBusiness

Managing Your Business Finances#SheMeansBusiness

Modules#SheMeansBusiness

Financial Goals

PersonalFinancial Health

Business FinancialHealth

Financial Records

Financial Reports

Costs & Pricing

Business Plan

Financial Services

Crisis Management

BusinessFinancing

FinancialGoals#SheMeansBusiness

• Financial goals should be○ Specific○ Measurable○ Achievable○ Relevant○ Time specific

• Personal vs. business goals

• Stability and normal operations vs. Opportunity and growth

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Financial Goals

Managing Your Business FinancesFinancial Goals

Case study: Ana

Managing Your Business FinancesFinancial Goals

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Short-term Long-term

• Household • Health • Education• Loans

• Emergency funds• Higher education• Pilgrimage• Retirement

• House• Property• Gold• Mutual funds

• Health insurance• Life insurance

Pay Save Protect Invest

Personal Goals#SheMeansBusiness

Managing Your Business FinancesFinancial Goals

Short-term Long-term

Business Goals#SheMeansBusiness

Expenses Savings ExpansionRevenue

• Optimize operations• Hire more people• New equipment• New distribution

points• Buy office building

• Emergency funds• Cash reserves

Managing Your Business FinancesFinancial Goals

• Suppliers• Bills• Salaries• Financing costs• Insurance premiums• Taxes

• Increase sales volume

• Increase selling prices

Revenue

Selling

G&A

COGS

Net Profit

=-

.

Net Profit = Revenue - Cost of Goods Sold - Selling - General & Administrative Costs - Interest Expenses - Taxes

I&T

Retained Earnings

or Owner’s Drawing

Net Profit#SheMeansBusiness

Managing Your Business FinancesFinancial Goals

Case study: AnaAna’s Personal/Family & Business Goals

Managing Your Business FinancesFinancial Goals

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Goals andMindset#SheMeansBusiness

• A strong entrepreneurial mindset is needed to seperate personal goals from business goals, as well as the finances.

• The more successful and profitable the business, the more benefit it serves in meeting personal and family goals.

Personal Goals

Goals and Mindset#SheMeansBusiness

Managing Your Business FinancesFinancial Goals

Business Goals

Entrepreneurial Mindset

Managing Your Business FinancesFinancial Goals

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• Money to buy Things• Spend than Save

Money

ENTREPRENEURIAL MINDSET

CONSUMER MINDSET

• Money to build Assets • Save then Spend

Asset Money Things

Managing Your Business FinancesFinancial Goals

#SheMeansBusinessEntrepreneurial Traits

Hard workingDisciplinedOrganized

Visionary

OptimisticSelf-ConfidentCommitted

CreativeRecognizes

Opportunities

Builds Assets

SALARY Business Family

Business & Family Finances are Mixed

Business & Family

Business & Family Finances are Separated

Managing Your Business FinancesFinancial Goals

Separating Business and Family Finances#SheMeansBusiness

• Household needs• House/shop rent• House utilities• Children’s education• Transportation• Communication• Personal shopping

• Raw materials/merchandise• Salaries• Shop/office rent• Business utilities• Business transportation• Business communication

• Household needs• House rent• House utilities• Children’s education• Personal transportation• Personal communication• Personal shopping

SALES SALES

Managing Your Business FinancesFinancial Goals

SALES Business Family

• Separate and account for costs resulting from use of family assets for business operations

• Business can reimburse family for these costs or set aside the money as cash reserves

Use of Family Assets #SheMeansBusiness

• Family members• Community members• Suppliers/Clients• Employees• Other businesses

• Health expenses• Community activities• Education fees• Basic needs and/or

services

• Urgency to make decisions• Increased risks• Unpredictability, instability• Business disruption

WHO? WHAT? POTENTIAL IMPACTS

Family & Social Pressures

Managing Your Business FinancesFinancial Goals

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Financial GoalsRecap#SheMeansBusiness

● Specific, Measurable, Achievable, Relevant and Time specificgoals help us stay focused while creating a plan to achieve ourtargets.

● Business financial goals support personal and family financialgoals, as the ultimate goals. The more successful and profitablethe business, then the more benefit it serves in meeting personaland family goals.

● Successful entrepreneurs have clarity on the purpose of theirbusinesses. They have strong mindsets that focus on savingmoney for building assets to make more money and prioritizebusiness needs over unnecessary personal or family wants.

● Segregate business money from family money. Pay yourself asalary and pay for your personal and family expenses from yourpersonal account only.

● In planning personal and business goals, we must consider theneed for insurance and long-term savings to cover our healthcareand retirement needs.

Financial Goals Recap#SheMeansBusiness

Managing Your Business FinancesFinancial Goals

Thank you#SheMeansBusiness