The Importance of a Monthly Money Report in Your Small Business
There are a number of ways in which we can determine whether or not we have a hobby or a business.
Does it make a profit? Do you wing it or run it with a plan? Do you refer to it as your business or do you brush it off as ‘oh, just this thing I do?’ Do you know every detail about the money—where it comes from, what your expenses are, what your profit is?
That last one is what I’m here to help with today. Knowing exactly where every single penny is coming from or going in your business is powerful and crucial to your success. At the beginning of each month you should be setting goals for how much money you want to make in your business. But how closely are you tracking what happens after that?
Are you actively keeping tabs on how much in revenue, expenses, and profit you are doing each month?
Are you evaluating those numbers and the information to adjust and tweak and improve?
If you have multiple income streams are you tracking them all separately so you know how each one is doing on their own?
If not (or even if you are but you want some pretty sheets to start using!), download the Monthly Money Report below and get to work tracking where your money is coming from and going. At the beginning of each month, fill in the goals you want to hit. At the end of each month, track your revenue/expenses/income and compare to the goals you set on the 1st.
Did you hit your goal? Awesome! What did you do to get there? Did you miss your goal? That's okay, evaluate what you did and what you need to do moving forward to get you to that mark! Do this each month to track your progress and keep tabs on that money, honey. This evaluation is what will give you the information needed to grow.
If you had a goal of making $500 in January and you ended the month with a profit of $350 you can easily look back at the past 31 days and see what you need to do moving forward. Maybe you only posted about your products three times in the entire month because you didn’t want to seem pushy so now in the new month you should try posting six times and see if your income rises. Maybe you left flyers for your local service based business in four locations around town and now this month you know you need to aim for ten. And if you did hit your goal (or exceeded it), use your evaluation to determine what worked the best so you can repeat it. If you got the most sales after your heartfelt post about why you made a product, channel that again moving forward. If you left flyers in four places and got three new clients all from the same place, you know that that is a good location to keep restocking with your marketing materials.
The main thing here is that we can’t focus on and get caught up on those times where we don’t hit our goal. The purpose of tracking our business money in this detail is not so we feel bad when we miss our mark. It’s going to be the catalyst for your growth, I promise. If you wanted to make $500 and you came up short, THAT IS NOT A FAILURE. It’s a learning opportunity and that’s exactly how you are going to treat it! Figure out what does not work. Figure out what does. Adjust accordingly and keep chugging along, babe.
If you are sitting there thinking that you may just have a hobby after all, don’t fret. Making the switch to a business isn’t as hard as it seems. Make a promise to yourself right here, right now, that you will start taking the steps to grow what you have into an actual business. If you don’t know where to start, download the Mother Run Business Planning Guide and get to work. There is no time like the present to go after your dreams.
Yours in business + motherhood,