This subject has already been touched on in another newsletter, but it’s such an important subject that I thought I’d expand on this a little more.
Before you start spending your money, it’s important to do Income Planning! This is planning your week/month/year as to what and HOW you are going to get your income. This will then tell you where you need to spend your money!
Example: you have a look and see what sales are already in the pipeline for this coming week/month, and you notice it’s not quite enough to cover your weekly/monthly expenses. So, you need more sales. Where are how are you going to get them? This will most likely involve some marketing and promotion. Do you have promotion ready to be done? If not, you need to work on your marketing plan. Do you still need to do some surveys? Do you need to find out what people need and want that you can provide? What are the buttons to be used? (buttons are words or statements that will entice people to buy your services or products) Do you still need to design your promotion? Have it printed? How are you going to distribute the promotion? All of these questions and answers will tell you what actions you need to take this coming week/month. And it will also tell you what your expenses will be. You need to take these expenses into account for any financial planning you’re going to do.
It’s an excellent idea to do this on a regular basis, and the frequency will depend on how your income comes in. If you get income coming in daily, then do your financial planning on a weekly basis. My income comes in monthly, as I invoice my customers monthly, so I do my financial planning once a month. And before I plan how I’m going to spend my money, I first plan my income for the next month. This will then tell me what I need to do for the next month: it tells me what my work load will be, what production actions I need to do, and if there isn’t enough work lined up, what promotion I need to do to ensure that there will be enough work. It’s also a good idea to look a few months/a year ahead to make sure that your predicted production/sales load is sufficient for you. And if it’s not sufficient, you need to start planning on how you’re going to increase this load.
If you have previously successful actions on promotion, then revive them. If you don’t have any such successful promotions, then you need to start from scratch planning this, and this planning would start with surveys. You may have some ideas of what people want, but is this your idea or theirs? Your ideas may not be correct. The best way to find out what people want is to ask them! Once you’ve surveyed, you then have the data needed to plan and design your promotion.
As always, keep it simple and… Flourish and Prosper 🙂