In this episode of Lean the F*ck Out, we have a frank discussion about money with financial coach Lynne Somerman. We talk about the challenges (and anxiety) entrepreneurs face when it comes to finances like forecasting, revenue versus profit, cash flow, budgeting and paying yourself. Lynne offers great tips for getting your money on track for your business and personal finances.
A Real Conversation About Money Episode Highlights:
- You are not the only one that doesn’t know what they are doing when it comes to budgeting for your business.
- To start budgeting get realistic with where you are right now.
- Remember, the numbers are facts.
- Talk to people that are in similar place as you.
- Revenue goals and profit goals are different.
- Growth happens in years, not months.
- Entrepreneurs often have unrealistic revenue goals and ideas for the speed at which they are able to attain them.
- The amount you are able to grow your business each year depends on where your business is currently and the trends you have experienced over time.
- Making 20% profit is a good place to begin.
- Be really realistic about business expenses and keep them separate from your life expenses.
- Look at your cash flow and budget daily.
- Base what you spend on actual numbers.
- For paying yourself a salary: a good goal to work toward is paying yourself 50% (250K under a year biz) of what you bring in.
- Change in your business is possible. Make small, methodic changes to reach your goal income.
Budgeting Tool: You Need a Budget (YNAB)
Book Recommendation: Profit First
Lynne Somerman helps entrepreneurs feel less stupid and sad about their money through practical skill building, habit change, and mindset work. She loves speaking about budgeting as radical self-care and coaching a client when they light up, realizing that they’re not doomed, after all. She lives in South Portland, Maine with her feisty daughter, snaggle-toothed dog, and chickens named after strong women.
You can find Lynne online at:
Facebook: Lynne Somerman Financial Coaching
Download the FREE Lean the F*ck Out Launch Kit
If you are thinking about starting a business or side hustle, check out our Lean the F*ck Out Launch Kit. The kit gives you tools and inspiration to start thinking like a fempreneur and start designing the life you want! You’ll receive a guided meditation to help you figure out your vision, a budget worksheet to see what you need financially to make a go of it, daily practices including printable worksheets and daily affirmations to help you keep your head up when your confidence is waning. Again, it’s free and it’s available at leanthef-ckout.com/launchkit.
Music: Sunshine by The Icicles