It’s January, and I want to talk about money.

Let’s dig a little deeper, I want to talk about the costs involved with business.

Until you’ve ran a business for a few years, it’s easy to assume you can make a lot of money. Of course you can, but only if you know your numbers.

I am guilty of not knowing my numbers too, just happily chugging along shooting weddings, getting paid, and paying off my credit card.

When I made a major career change, and my margins became tight, I needed to get educated and make adjustments. Most of what I was doing was instinctual and that can get you pretty far, but here are some important things to consider if you want to be more intentional in your creative business.

  1. Tally us your hard costs

    Do you know what a hard cost is?
    It’s an expense that doesn’t change month to month.
    Eg. your lease expense, phone bill, internet fees, studio rent, CRM software
    Figure out how much you need each month just to pay your bills (aka. Hard Costs)

  2. Save for taxes

    Don’t be like me and spend it all, set some the exact amount for GST, PST, and 25% for income tax (save too much? pop it in an RRSP come Jan).
    Automate it in your online banking, did you know you could do that?
    Those sneaky revenue Canada envelopes come quicker than you thought, be ready for it.
    Your future self will thank you!

  3. Consider the incidentals

    You know, the lens that needs repair or your awful want to kick yourself groom’s name misspelling on the cover which means you now have a sample album you hadn’t planned for… been there, done that.

    Or maybe you just needed a dinner out after the week you had and couldn't imagine cooking one more time.

    Welcome to incidentals, all the little things we never consider.
    Want a fancy coffee this week? Better include it in your costs!

    Start by calculating an average by adding up the last few months, include these items in your business cost analysis. Doesn’t have to be perfect, you’ll end up making adjustments as you move forward.

  4. Pay yourself first

    What is your 5, 10, 25 year goal?
    Retirement?
    Travel?
    A cabin?
    Make it a priority by paying yourself first. Whatever you want, whether it’s instant gratification items or long term goals. Set aside for it.

    This is the fun part where you feel rewarded for all your hard work.

    Personally, I’ve always been pretty short term. Lately that’s changed though. My kids are growing up and I’m wanting to make the most of the time with them. For me, that means saving for a big trip with them in their teen years. I love having a large goal to set my eyes upon and look forward to.

I share these things because I want you to know two things:

  • You are not alone

  • It’s not so scary to talk about this stuff

Please comment below, click the heart button, or give me a review on google. I absolutely love helping others rise, and getting my name out there is how I can increase this offering!

Catch ya later friend, and remember you can always hire me for one on one consulting through The Well Co. if ya want. I am here for you.

xo
Tams


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