Do you know what the breakeven position is in your business?

Do you know what the breakeven position is in your business?  Do you even know what that is?
 
If you don’t know (and it’s totally ok if you don’t), breakeven is when your sales and costs are the same ie zero profit.  This is taken after tax to ensure this doesn’t get forgotten.
 
Start with working out your fixed costs.  These are the items that, if you didn’t have any income, would still exist.  This might be your website, insurance, accounting costs, employees, office space costs, tech (G suite, zoom etc) or manufacturing costs.  Also, anything that you are paying on a payment plan to ease the payments.  Anything that you can’t just turn off if your business stopped for a period. 
 
Then look at the variable costs.  This could include paying yourself although I think you should be aiming for a minimum fixed cost each month to pay yourself.  So put in how much you need to live in this...
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6 Figure Myth

In this week's blog, I want to talk about all the stuff I see online about "6 figure businesses". I think it can make small business owners feel that they are not getting it right if they are not doing this.
 
Don't get me wrong, I'm sure they are making 6 figures in their business but this is only talking about the sales they make. This isn't to be dismissed, but the bit they don't tell you is how much their business is costing to run and how much money they are taking out of the business for themselves. It may even cost them 6 figures to run their business!
 
It's expensive to run a 6 figure business, often with employees and freelancers working for the business, plus all the costs of various events they run and the software that is used.
 
I think it can be aspirational to hear about people doing well in their business, but it can also leave you feeling inadequate, especially if your business is just you.
 
Don't feel bad if you are not making 6 figures, focus...
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Pricing

expenses pricing Apr 29, 2020

When was the last time you reviewed your pricing? And how much do you give away for free?

So many people I come across give everything away for free. I'm not saying you shouldn't give stuff away for free and make it some of your best content, but too many people, especially women, don't sell after the free stuff comes out. And then we are back to it being a very expensive hobby.

It's important to check that your prices are competitive in your market place, especially if you are in a price driven market, but also make sure you are charging what you are worth, plus having enough to live.

When did you last sit down and work out how much you need to charge to cover your overheads? Do you know how much your overheads are, including paying yourself? What about how many hours you work? Do you take off holidays or have quiet or busy periods in your business? Do you work full time even? And how many of the hours you work do you actually do client facing work? What about the time spent doing...

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