Can we say enough or too much about setting financial goals—especially when it comes to operating a home business? The very fact that those of us who are starting and running our own business are on our own (no “company” or cushion) makes it imperative that we develop a plan and re-evaluate our financial goals periodically to make sure we are staying on track.
Our goals DO NOT have to be lofty—for some us, just making sure all the basics are covered is enough: paying bills on time, paying off debt, saving some money for college and retirement. For others, buying that vacation home or taking that cruise are on the list of financial goals. But, we can expect our goals to change over time. As the kids grow older and our priorities change, it is necessary to re-think our financial plan and make adjustments.
The most important thing is that we actually take the time to develop a financial plan. This means taking a good, hard look at our home business, and all of our revenue streams and expenses—as well as projecting our continued efforts and responsibilities into the future. Getting it all down on paper (or on our computer) gives us a document we can refer to and reevaluate as our circumstances change or as new opportunities present themselves.
For things like retirement and college savings, it may be necessary to contact a financial consultant to make sure that we’re covering our bases since we’re working from home. We may need additional life insurance, an individual retirement account, or other financial considerations to make sure we reach and achieve our financial goals.
Having financial goals and a plan will likely actually give you a sense of peace as you cope with the precariousness of building a home business. It is often the unknown that can give us so much grief and make us feel unprepared. Knowing that we’re taking the time to identify and work towards our goals can help diminish stress—just when we might need it most!
See Also: Planning for NEXT YEAR’S Taxes and Keeping Track of Business Expenses