3 Ways To Know Whether Your Business Is Working For You
Do you have a business that works for you?
Are you working for your business… or is it working for you?
At first glance, it may seem like the answer is obvious. You’re a business owner. You’re running a business, and therefore, it’s working for you.
But if you dig a little deeper, does that still hold true?
When most of us start our businesses, we have these lofty ideas about walking away from corporate life, having significantly more time to spend with our families, working from anywhere and it 100% being on our terms… and yet, in reality, we often end up working harder and longer hours than we ever did in corporate. And if I might be so bold… for less money.
That new business that we dreamed of, built with blood, sweat, and tears, isn’t quite living up to our expectations.
Early on, we might be okay with this sacrifice. We might have been willing to skip out on some family time, work long hours, and not pay ourselves because it’s all going back into the business. That’s just part of it, right?
That was the case for me. When I switched to a completely different niche and set of service offerings, I essentially started over. I made a lot of sacrifices and tolerated a lot of stuff that I shouldn’t have… all because I knew I’d have a thriving business down the road.
But if I could go back and do it all over again, I would do some things differently. I’d pay myself from the get-go, take a more strategic approach to my business, and set better boundaries and guardrails for myself.
That’s why one of my favorite parts of the S.T.R.A.T.E.G.Y Method begins at Step 1: State of Affairs. Right off the bat, I encourage you to really take a hard look at your business to make sure your business is working FOR you, rather than YOU working for it.
What Worked For You And Your Business This Year?
Too many entrepreneurs allow their businesses to suck up all the time, energy, and cash without seeing or *gasp* even expecting a return. Now’s the time to take off the rose colored glasses and really examine what’s working and what isn’t in both your life and your business.
Ask yourself:
What did you accomplish this year in your life? In business?
What were your disappointments this year in life? In business?
What did you learn this year in life? In business?
There are always ups and downs, so acknowledging and celebrating the wins - big or small - and lessons learned is a powerful tool to honor the work you’ve done and what you’ve built. It’s equally important to identify where things didn’t go as well as you had hoped. It’s inevitable that a launch you had planned didn’t pan out the way you wanted, or the podcast you hoped to start kept getting pushed by the wayside. There’s nothing to be embarrassed about, but it’s difficult to move forward and prepare for the upcoming year when you don’t acknowledge and release the disappointments.
Examine Your Revenue
I really like to get into the nitty gritty of the money. You may find yourself clamming up over that, but I invite you to take a deep breath and engage with me here. Your numbers tell an important story and give you the insight and power to either press forward or redirect your efforts. You can’t make adjustments that matter for your business and your life without this step.
One of my favorite exercises is to look month by month at the revenue you generated and where it came from. You may be surprised to see that the bulk of your clients came from one particular source (referrals, social media, networking events, speaking engagements…) and yet the majority of your time, energy, and effort has been spent elsewhere. This process is very enlightening, and just like with the disappointments, there’s no room for shame or guilt. We’re dealing with facts, and we can’t make good use of our resources if we never acknowledge the facts.
Did You Pay Yourself?
This may be a touchy subject, and I acknowledge that. For years, I didn’t pay myself much or anything at all. I was very focused on reinvesting my money into the business and into my own growth as the leader of the business.
Hear me loud and clear: you absolutely need to invest in yourself and your business.
And it can't be at the expense of your own paycheck.
Alice Bredin, a B2B marketing entrepreneur and small business advisor for OPEN said, “Compensating yourself is important for you and your company. If you are not allocating funds for your own salary, your books do not accurately reflect the health of your company, since your expenses are missing a large cost, namely you. Without factoring in all expenses, you won’t know if you need to raise prices, market more, cut costs, or make other adjustments that will help your company succeed.”
You may be tempted to work for free, but your time and hard-earned experience and expertise has immense value.
When was the last time you paid yourself? When was the last time you paid yourself a proper salary?
If you haven’t, this is a great opportunity to start!
Your business should be working for you! If your passion project has turned into an albatross around your neck, I invite you to join me at Design Your Best Year Yet! This 5-day free challenge is packed with all the things you need to build the life and business you truly want! To join us, simply click here and save your spot!
