Money: The Biggest New Year’s Resolution Mistake
There’s no better time to take a moment to re-evaluate your startup and set some new year’s goals than the first month of the year. But, there’s a right way and a wrong way to everything. Many entrepreneurs end up focusing their goals on the wrong things, and in turn, their business suffers. So, in this blog, we’re going to go over the mistakes biggest mistake that entrepreneurs make when setting goals for their young business.
Don’t Make “Making Money” Your Business Goal
We all want to make money, we want our business to make money, but making “more money” your goal will most likely distract you from making a quality product.
Sure, we’ve all heard about the actors who write themselves a $1 million dollar check in the hopes that one day they’ll be able to cash that check. The elusive “one million dollars” (with a pinky raised to your lips) can be a great motivator, but it shouldn’t be your goal. Of course, you want your revenue to grow, but instead of a dollar amount, try to think about your growth in percentages. AND BE REALISTIC!
Be realistic with your goals for growth and revenue
If you’ve got your financials under control, it shouldn’t be hard to look at last year’s revenues, and last year’s growth and be able to set a reasonable growth percentage for the coming year. But, there are powers at work in the financial universe that may be out of your control, so setting up some sort of extraordinary dollar amount for 2016, could just set you up for disappointment. And, you never want to compromise quality and integrity to reach a certain dollar amount. Slow and steady wins the startup race.
When you are dealing with “growth percentages” rather that a particular dollar amount, you don’t want to confuse that growth with profit. Yes, the goal, eventually, is for your business to make a profit, but this can also be a lofty goal for a startup. Most startups don’t turn a profit for years. Not being profitable right away is not a sign of failure; this is just the reality of starting a business and being your own boss.
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Growth can be seen in many ways, not always in dollars and cents. Growth can mean that you were able to hire that employee that you need to propel your business forward. Growth can mean that you are able to move out of your mom’s basement and pay for some office space. Growth can mean that you are gaining traction and popularity on social media. Growth can mean many things, but it rarely, in the beginning, means making money or turning a profit.
Be careful with your new year’s resolutions for your startup. They are not wishes, so make them realistic, and make them achievable.