Just finished a big project and realized I have no idea if I’m actually building a sustainable business. How do you guys figure out if you’re on track financially for the long haul? Feels like I’m always chasing the next gig without a clear picture of where I’m headed.
I keep it basic. Track income and expenses monthly. Save for taxes. Know my living costs.
Anything extra goes to savings and business growth. Review every quarter to see if I’m on track.
If the numbers don’t work, I raise rates or cut costs. Having a cash buffer for slow times is key.
It’s not rocket science, but it keeps me in business.
Numbers ain’t my strong suit. I just work and hope for the best.
I’ve been running my own gig for a while now, and here’s what I do:
Every month, I look at what came in and what went out. I use a basic spreadsheet - nothing fancy.
I set aside about a third for taxes right away. Learned that the hard way after a rough year with the IRS.
Then I figure out how much I need to live on. Whatever’s left, I split between savings and reinvesting in the business.
I also keep track of how many hours I work and what I actually make per hour. Sometimes a project that sounds good isn’t worth it when you break it down.
Every few months, I look at the big picture. Am I making enough? Do I need to raise my rates? Are there costs I can cut?
The key is to actually do it regularly. I set reminders on my phone so I don’t put it off.
It’s not perfect, but it helps me sleep at night knowing where I stand.
I don’t bother with fancy math. Just keep cash in the bank and work steady. If there’s money left after bills, you’re doing okay. That’s how I stay afloat.
Look, it’s simple. Track your income and expenses monthly. Set aside 30% for taxes. Figure out your baseline living costs. Whatever’s left is profit. If you’re not hitting your target after 6 months, raise your rates or cut costs. Don’t overcomplicate it. Just keep good records and review regularly. And always have a few months of expenses saved up for slow periods. That’s how you stay afloat long-term in this business.
Been there, felt that uncertainty. Here’s what helped me get a clearer picture:
- Track everything
- Income from each project
- All business expenses
- Personal spending
- Set financial goals
- Monthly income target
- Savings amount
- Retirement contributions
- Review and adjust
- Look at your numbers quarterly
- Spot trends and patterns
- Tweak your rates or expenses as needed
I use a simple spreadsheet for this. Nothing fancy, but it gives me peace of mind.
Also, don’t forget about the non-financial stuff. Think about:
- Skills you want to develop
- Types of projects you enjoy
- Work-life balance
It’s not just about the money. Building a sustainable business means creating something you actually want to keep doing long-term.