REPEAT AFTER ME: DO NOT MANAGE YOUR BUSINESS BY LOOKING AT YOUR BANK ACCOUNT.
Hands up if you're guilty of this!
Here's what it looks like:
Opening up your banking app.
Taking a quick squeeze and using the "cash in the bank" to assess the "health" of your business.
Making decisions on spend based on the figure you see.
Rinse, repeat.
It's normal for a LOT of businesses to operate this way.
The truth is though? It's problematic, ESPECIALLY so, when you have a business that has inherently "lumpy" income. Lumpy income means that you don't have a consistent "amount" ending up in your bank account each and every week, and it's really common for course creators (and all online business owners).
Oftentimes, we're launching so we will get a big cash injection in one month thanks to pay in full payments, and then slower months where you have MRR (monthly recurring revenue) from older payment plans still coming in. Or you might sell year round (no launch model), but you have a BIG influx of pay in fulls and have an unexpectedly big month whilst other months might be unexpectedly smaller -- even if you hit your "goal" intake numbers.
In these circumstances, running your business by simply looking at your bank account could land you in serious hot water.
In this episode, we discussed:
✔️ Implications of Managing Your Business By Your Bank Account;
✔️ Set PERCENTAGE Budgets;
✔️ Use Revenue as MRR to Set DOLLAR Budgets;
✔️ Allocate Your CASH COLLECTED Monthly Into Your Buckets;
✔️ And MORE!
Full show notes for this episode can be found at:
https://thecoursecartel.com/185
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