Does YOUR Month-End Process Support Income Generation?

Following this step-by-step process at the end of each month – or year – will guarantee that your focus stays on income generating activities AND will help you set goals for the next 30 days.

Often, Solo Pros get so caught up in the chase for the next client that they fail to pay attention to steering their business. I like the teach what I call the “Kayak Business Model’ which revolves around strategically building your craft (your business) to include systems designed to keep it afloat and moving forward with a minimum of effort on your part.

This ‘Month-End Process’ is one of those systems that helps keep your oars in the water paddling in the right direction. It also keeps you on course with your income goals and shows you where to make course corrections quickly so you don’t waste time spinning your wheels on non-income-producing activities.

10-Minute Month-End Process

This simple 10-minute month-end process will help you be aware of where your money is coming from, where it’s going, and – most importantly – it will create energy around your money that helps you focus your efforts where it counts the most.

1. Track ALL your incoming money. Total up ALL the money that has come in during the month. Be sure that you’re tracking all the money coming in, including money not associated with your business. It all counts.
2. Compare with last year. Do a quick comparison with the same month of the previous year. Do you see a pattern?
3. Compare with previous month. What story does it tell you? Are you finishing off a big project and using that momentum to springboard into the next projects? Or are you dropping the ball? Don’t create drama with what you see. Just notice patterns and opportunities.
4. Set you speedometer higher. In my ‘Charge What You’re Worth’ program, I teach an exercise called the Money Speedometer where we incrementally increase the amount of money you shoot for. Just like cruise control in your car that focuses on maintaining a specific rate of speed and will actually slow you down when you pass it, many Solo Pros subconsciously set their Money Speedometer lower than necessary and sabotage themselves when they begin to surpass that amount. During the course, we do several exercises to move beyond that behavior. For now, just set a goal on how much you’d like to be making – make sure it’s MORE than you’ve done in the past and a little OUTSIDE your comfort zone. Initially, do this speedometer reset once a quarter. When you’re meeting or exceeding those goals, start doing it monthly.
5. Set your money goal for the next month. Here are 5 specific goals to set for yourself each month:
• A new minimum bank balance. Set an amount that you will not allow your bank account to go below. It might be $100 or $1000. Get into the habit of ALWAYS having at least that amount in your bank account at all times. Why? It helps create discipline AND helps to create a sense of security – which many Solo Pros struggle with. Additionally, many banks are beginning to charge a ‘low-balance fee’, and this will ensure that you do not waste money on fees like that.
• Establish a lowest monthly revenue minimum. Set a goal that you will not allow yourself to earn less than that amount each month. Don’t waste time berating yourself if you don’t hit it, but challenge yourself to make it happen even if it’s a small amount. For example, if you decide that you’re going to bring in at least $1,000 a month and it’s the 20th and you’ve only brought in $850 – have a sale or do a special or some other pro-active thing to try to hit your minimum.
• Pay yourself. Decide on an amount that you will routinely transfer into your savings or personal account as your monthly payment. Even if it’s a tiny amount, get into the habit of doing it regularly. Transfer it from your Business account into your Personal account on the same day every month. What’s important is to get into the flow of paying yourself. When you’re consistently paying yourself, then it’s time to give yourself a raise.
• Have a savings goal. This is not just an amount, it’s the real and meaningful purpose FOR that amount. For example, maybe you want to save $xxx to cover this year’s taxes; or $x,xxx to put into your IRA this year. It can even be for a reward for yourself like a great vacation, but make it something very real and important to you – not just a dollar amount. Attaching significance to the dollar amount will help you keep to your goal.
• Set a ‘Best Month Ever’ goal. For next year, pick a monthly income amount that you’d like to reach. Make it a little outrageous: $7,000, $10,000 whatever – and make a game out of ways to reach it.

Focus on setting realistic goals so you don’t sabotage yourself. Incrementally increase your goals to keep you moving upwards. Small steps are easier to reach than huge ones.

Look at which goals seem most challenging to you and dig into why that seems hard for you. For example:

• Does setting a monthly goal seem frustrating for you because you’re holding back from launching new programs, packages, or services?
• Are you hiding out with your old comfortable clients even though they aren’t paying you what you’re worth and not stepping up into a higher grade of clients?
• Maybe you need help to grow and you’re hiding out and not asking for the help you need.
• Are you resisting investing in your business because you’re holding onto money because of scarcity mentality? You MUST get comfortable feeding your business if you expect it to feed you
• Do you over deliver and under charge your clients?
• Are you creating drama in your business to distract yourself away from areas that may be uncomfortable? (raising your fees? creating packages instead of customizing?…)
• Are you hiding out and not presenting yourself as the expert you are?

You’re welcome to use this article, I just ask that you be sure to keep the author’s info with it and please link to our website.

Author Info: Barbara Saunders is a publication designer and has run a successful solo pro business for more than a decade. She is the Solo Pro Success Coach and the Director of the International Association of Self-Employed Communication Professionals and the Solo Pro Academy. She also hosts the Solo Pro Radio show every Wednesday at 10am Pacific and 1pm Easter. It’s our mission to build community and help creative solo pros build and run successful businesses by providing support, innovation, tools, and strategies. Our goal is to liberate our members from the feast and famine cycle.