Recently started tracking my contracting business finances more closely. Realized I need some clear financial goals to aim for. Not sure where to start or what realistic milestones look like in this field.
Anyone else set financial targets for their solo gigs? What metrics do you focus on?
I just keep an eye on how much I make each month. Try to save some for when work’s slow. Don’t worry too much about fancy numbers. Just know what you need to pay the bills.
Monthly revenue. Aim to increase it steadily.
Profit margin. Keep it at least 30%.
Expenses. Know exactly where your money’s going.
Cash reserves. Have 3 months of expenses saved up.
Set realistic goals based on your current numbers. Maybe aim to boost revenue by 10% in 6 months. Or cut expenses by 5%.
Don’t overcomplicate it. Pick a few key numbers, set clear targets, and check in monthly. Adjust as needed.
Most important: always have a buffer. This business can be feast or famine. Be ready for the slow times.