How can i set myself a financial goal?

Question

I am a wanting to set myself a goal of opening my own business but i cant get into my head how much money that i aim to make as a good financial goal for me to make enough money to live on but still have enough to keep the business going?

Answer 1

That is the wrong way round.

Work out what you need to live. Start with what you have now. Add money for the things you need but do not have.

Do not think about starting to run a business without this clear financial goal. It will fail.

Your business then has to generate the cash to pay what you need in wages, plus it's running costs, plus investment to improve assets. It is wise to add an amount for contingencies, e.g. to cover your wages if you cannot work for a month.

Financial goals are all about numbers. They need to include a timescale. You should also add some inspiration by clarifying why you need to achieve this. It will inspire you to keep going when times get tough.

Comments

This is a great answer, Thank you.