Why Six Figures Might Not Be The Right Goal For Your Business
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February 1, 2023I’m going to come right out and say it: Your business goal doesn’t need to be six figures a year.
Are you still fighting the urge to make it all about the money because you don’t know another way? Here are a few equally acceptable and, dare I say, magical business goals you can have that don’t involve income:
Create a long-lasting business that lights you up
Have the energy to prioritize your relationships and health
Make time for your hobbies and vacations
Over the course of my own journey to “make it” in business, I’ve learned a lot about letting go of the need for a six-figure income, healing from burnout, and charging my worth. Now I want to share those lessons with you!
Making money like it’s my job
In my second year of business (2019 for those of you counting!), I made $120K. I had doubled my income from the previous year and finally hit the elusive six-figure mark. I was so excited, but that isn’t the full picture.
This was also the year my expenses went up. As my income increased, I had more materials to purchase, subcontractors to hire, and taxes to pay. This often isn’t considered when we set a six-figure goal.
And why not? Because it’s exciting to shout from the rooftops about how you made $10K each month but to actually do the math on how much you brought in… not so much.
This realization helped me understand that ebbs and flows in my income are normal. Plus, giving myself permission to evolve my business in a way that feels good to me is more than okay, it’s necessary if I want to continue to enjoy what I do!
Burnout was my bestie, but not by choice
That enjoyment wasn’t always there though. My jump to six figures led me to burnout, big time.
There were times when I had 12 projects going on at once. I also took on gigantic mural projects where I was just painting, not designing, and I wasn’t happy. I found myself working 10-12 hour days painting on-site and traveling 1-2 hours away.
It wasn’t fucking fun. But it taught me something I’ll never forget…
There’s no “magic number”
Money isn't everything. Money doesn’t bring you happiness. Money won’t make you feel successful long-term.
What will? Freedom. The option to choose, welcome in ease, and feel fulfilled by doing whatever the fuck you want. It can be making your own hours, taking vacations, or working less. It’s living life to the fullest, whatever that means for you.
I know it feels like there’s this elusive number where everything will feel perfect but, I promise, it’s not true. Besides my personal experience, there are statistics that show if you bring home $75K a year, you're just as happy as people who bring home more.
If money isn’t the goal, what is?
How do you switch gears and move from focusing on six figures to prioritizing freedom and abundance? It starts with determining the right number for you. This is where the magic lies.
And because I’m all about transparency, here are 3 steps to calculate how much your business needs to make in one year for you to feel successful on YOUR terms.
1. Get clear on your personal business goalsWhat are you building up your business for – to buy a house, adopt a puppy, take more vacations, invest in new branding, or hire a VA? Your goals should align with you and the direction you want your business to go. This is when it’s time to put your blinders on to get clear about your future.
2. Find out your revenue vs. profitThey're different. Revenue = gross income or your earnings before any deductions or taxes. Profit = net income or what you’re left with after covering expenses and taxes (and sometimes your own salary). I see a lot of creatives mix this up and I don’t want that for you.
3. Decide your hourly rateHow do you do this? Look at your business expenses and your personal expenses and divide that by the number of hours in a year you want to work. That’s how you get your hourly rate AKA how much you need to reach your goals.
Love this money talk? I talk more about this in the Holy Fuck Pricing community. If you’re just diving into this world, you can also use my free downloadable that I created after reading Freelance, and Business, and Stuff by Hoodzpah.
The bottom line
Here’s the deal… making six figures isn’t worth the burnout, especially if that amount doesn’t align with your business goals or personal values. It’s time to get back to the basics.
More money may not be the answer… but it could be! That’s why checking in with yourself is key.
If you do the work and find out that $100K is what you need to make to do the things you want to do, that’s incredible. It’s totally possible to raise the value of the services you offer to increase the capacity at which you can make money.
It’s also possible to love what you do, enjoy working hard, and still have a sense of ease, freedom, and flexibility within your business. This is hard to do if your services are priced too low though. You’re only one person and you didn't leave your 9-5 to work yourself into the ground trying to make six figures.
There’s another way.
Ready to explore what that looks like for you?
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