1. Forecast your annual revenue by month.
You’ll never know what you can afford if you don’t know how much money you’ll have. As you forecast revenue, consider your business’s seasonality, how many leads are in your pipeline, how long it takes you to close these leads, and when money will arrive in your account based on your business model. Reference industry experts and benchmarks for your initial forecasts as you get started if your company doesn’t yet have historical data.
2. Determine your margins in advance.
With your revenue projected for the next 12 months, decide what percentage of what you earn will pay for the product or service to be produced (cost of goods sold) and what rate you want to keep for profit. Allocate the remaining percentage to operating expenses such as marketing, IT, and employee burden costs like salaries, benefits, taxes, etc. The projected revenue and the fixed percentages will give you and your team an actual dollar amount to plan around.
3. Only pay for what your team needs to achieve the organization’s goals.
Implement a zero-based budgeting process, which Investopedia.com simply describes as a method of budgeting where “budgets are then built around what is needed for the upcoming period, regardless of whether each budget is higher or lower than the previous one.” Instead of merely giving your leaders and team members a sum of money to use the entire year, ask your team to create a budget and request funds based on what they need to achieve their objectives. Most organizations have leaders develop budgets based on what’s allocated for their area. Modern business culture often perpetuates the myth that leaders must spend what’s in their budget so their department doesn’t lose it or so they can justify getting more the next fiscal year. Don’t let this type of behavior take root in your organization
What would an ideal work-life balance look like for you? What are the steps you can take to get there?
What are some aspects of your job and home life that could be delegated to someone else? What would you be able to do with that newly found time?
What are some hard constraints you can place on your time each day to allow you to become more successful at work and home?
When you think about vision, think about what you want, what’s important to you & what constraints you need to put in place to make it happen. — Megan Hyatt Miller
If you really want to have a thriving culture and high performing team members, you have to think about their life outside of work as much as their life inside of work. — Megan Hyatt Miller
It’s impossible to win at work and succeed in life unless you first believe it’s possible. — Megan Hyatt Miller
Unplugging and putting hard edges on your workday is a game-changer to your performance. — Megan Hyatt Miller
Achieving a successful work-life balance starts with a vision. — Megan Hyatt Miller
(04:22) Today’s listener question: “How can I be available and engaged with my family while growing a business?”
(06:14) Megan Hyatt Miller introduces herself and talks about her background
(08:23) What is preventing leaders from winning at work and life at the same time?
(10:27) Balance vs. Integration
(16:26) Megan shares how to make a vision for your life outside of work
(17:37) How Megan transitioned into and took on the responsibility of COO at her company, while parenting five kids
(19:09) How to put constraints on your time
(20:33) Getting buy in from your family when creating a vision for your personal life
(22:29) Megan talks about the “Ideal Work Week” tool, how she uses it, and how it can benefit you
(23:53) Meeting Free Wednesdays!
(26:11) The importance of the question “Do you need me to be there?” in prioritizing your time
(27:45) How you and your spouse can be 50-50 partners with your kids
(31:56) Tricia and Lisa share their takeaways from their interview with Megan
(35:38) Today’s One Next Step: Download this week’s activation guide, the “Ideal Week” template from Michael Hyatt & Co., a tool that will help you plan your ideal work week if you were able to control it completely
