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’ve been down this road. Here’s what I do:
I track my monthly income and aim to bump it up a bit each quarter. Nothing crazy, just steady growth.
I keep tabs on how much each project actually puts in my pocket after expenses. Helps me know which jobs are worth my time.
I always set aside some cash for those slow months. Learned that the hard way.
One big thing - I started tracking how long clients stick around. It’s easier to keep good clients than always hunt for new ones.
For goals, I keep it simple:
Don’t get too hung up on fancy metrics. Just know your numbers and have a clear idea of where you want to be in 6 months.
What’s your biggest money worry right now? That might help you figure out where to start.
Tracking finances is smart. I’ve been there too. Here’s what’s worked for me:
Key metrics to watch:
For milestones, I focus on:
Start small and build up. Set realistic short-term goals first, then aim higher as you grow.
Remember, contracting income can be unpredictable. Having buffer savings helps a ton during slow periods.
What’s your current biggest financial challenge? Might help narrow down where to focus first.
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.
I don’t bother with numbers much. Just make sure there’s enough for beer and bills.
Been doing this for years. Here’s what I track:
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.
I keep it simple. Focus on these:
Monthly income. Set a target and work towards it.
Savings buffer. Aim for 3 months of expenses.
Profit per project. Know your worth and stick to it.
Track these numbers monthly. Adjust your rates or workload if needed.
Remember, steady growth beats quick gains. Don’t underprice yourself just to hit a number.