26 Oct 6 steps to passion, purpose and profit
One of the key factors I share in my presentations is my six step process of how you can create a business that has passion, purpose and creates PROFIT for you.
It’s fantastic to have passion.
It’s fantastic to have purpose.
But without profit, your business will be a very expensive hobby.
You don’t want to get caught up in the hobby trap…
Giving away your services for free, or not understanding your numbers leading to you not charging enough for your products or services to enable you to make a PROFIT.
At the end of the day you started your business to create a profit, to create financial and lifestyle freedom for yourself.
Below are my 6 steps to creating your successful, profitable business!
Step 1: Passion and Purpose
What does passion and purpose mean to you?
Throughout my experiences of running presentations, client meetings, and speaking gigs, passion and purpose normally comes down to “what is it that your heart desires?”
It can be difficult to find your true purpose in life, your true calling.
But there are ways that you can discover your passion and purpose.
I’ve been doing a lot of meditation recently, journaling and reflection, and really diving deep into what my passion and purpose is.
I’ve discovered that it’s actually linked to many of my life lessons, the things that I personally need to learn, the lessons that I need to reveal, uncover and work my way through.
Finding your passion and purpose will always be a work In progress.
But as long as you are constantly focusing on that passion and purpose piece, and doing the work, connecting with yourself on a deeper level and asking the questions, you will have your “AHA” moment and realise your true passion and purpose.
Step 2: Freedom number
What is the “Freedom Number”?
The Freedom Number is the most important number in your business.
It is the Income Goal you set for yourself after you clearly work out the following three key numbers.
- Your Personal expenses.
- Your business expenses.
- Your estimated taxes.
By becoming clear on each of these three numbers, on a monthly basis, you calculate the FREEDOM Number for your business.
The total income you desire to reach each month to enable you to cover not only the business expenses, but also your personal income goals and taxes.
It is a way of working backwards to become very clear on your monthly income strategy. Once you have calculated your Freedom Number you can then create your marketing & sales strategy and become clear of the key targets you need to achieve to reach your monthly income goal.
I like to say that it helps you to determine the numbers behind the numbers.
For example, the number of sales calls you need to make, the number of products or services you need to sell, the traffic you need to have on your website, past your shopfront and the list goes on.
Step 3: Income Strategy
Once you know what your freedom number is, then it’s time to look at all the different types of income sources that you have.
In your business, you might not just have the one source of income, you might actually have a number of different products or services.
For example, as a consultant myself, I have my consultant income, bookkeeping income, my events and commission payments.
When I review my income strategy, I take into consideration all of the different income strategies and work out how many of each of those I need to sell on a monthly basis to reach my freedom number.
Step 4: Profit Plan
Once you have calculated your “Freedom Number” and worked out your Income Strategy, you put it all together to create your 12 month Profit Plan, AKA your budget (I much prefer to call it a Profit Plan).
This Profit Plan (budget) can be entered into your accounting software to help ensure you are on track each month towards your goals.
Step 5: Review, Reset, and Realign
The number one most important step of this six step process to creating passion, purpose and profit is to “Review, Reset & Realign” your Profit Plan on a monthly basis.
This review process enables you to really track, measure and tweak your progress every month, rather than waiting for your accountant or bookkeeper to do your accounts at year end.
My belief is what you measure you can improve!
As you review your Profit Plan, ask yourself the following questions:
If you’re not hitting your income goals, what do you need to tweak to to hit those income goals? Maybe you’re not connecting with the right people, or you don’t have enough leads coming into your business or your website is not quite hitting the mark. What are the possible reasons for you not reaching your income targets?
As you review your expenses, you will start to see where you are spending your money on a more granular basis, and therefore you can manage them a lot better. If you notice expenses starting to creep in, you can put in place a strategy to make sure that you reduce those expenses.
If you determine that the budget you created at the beginning of the year isn’t quite in alignment anymore, you can realign it by changing the budget. It’s not set in concrete, you can actually realign that budget depending on your business and what’s happening.
You don’t want to set a budget that’s too high that it becomes demotivating, but you also don’t want to set a budget that’s too low.
Step 6: Confidence
Step 6 is Confidence.
As you begin to increase your knowledge of your business finances, your personal confidence will increase.
Your confidence in your team, in your systems, in your business knowledge will all improve which is really, really important to your success.
I must admit I didn’t have the confidence I needed when I first started in business.
It was my lack of confidence that led me to making one of the best decisions for my business. This was the decision to start working on my own self confidence. As I worked on myself personally, and built that confidence muscle, by learning new strategies, new life skills, I began to step outside my comfort zone and do the things that I hadn’t done before my confidence grew.
As my confidence grew, I began to take the action in my business that I needed to take to take it to the next level.
I personally believe that anything you do in business or life that grows your confidence is a key component of your business success.
Do you desire a business that is not only sharing your passion & purpose with the world but is also making you an amazing profit so you can live the life of your dreams?
You can create your very own “Profit Plan” with my FREE Profit Calculator tool.
To access it click here: https://www.profit2.cash/f/profit-calculator
Hi, I’m Phoebe. and I love business! As a sought-after qualified accountant, I come from a place of experience, with over 15 years of running my own accountancy firm, MGA Accountants, I scaled the business to double the size before successfully selling in 2015. Now I am focusing on what I love, helping Professional and Trade service business owners step up from being the Technician to the true CEO of their business, to create more profit and time freedom to live the life of their dreams.