Monthly Archives: January 2018

Talk with Tom: Episode #28 | 5 Cash Flow Goals Every Small Business Should Have

 

business cash flow

On today’s episode of Talk with Tom, we continue with our January theme of goal setting but this time we turn it from personal goals to business goals…from Growing Your Life to Building Your Business. Today’s topic is the 5 Cash Flow Goals Every Small Business Should Have:

  1. Pay attention to margins
  2. Pay yourself a salary
  3. Have finances in reserve
  4. Avoid debt
  5. Save for growth

Be realistic about your goals. Aiming for super high margins, an unrealistic salary, or endless cash reserves can be detrimental to your business. Think about each of the above steps and prioritize each based on what’s realistic and achievable for your industry, fiscal state, and wider business goals. Start by revisiting your business plan, talking to your accountant, and then go from there.


Every month Tom shares topic after topic to Grow Your Life and Build Your Business. If you’re not already a subscriber, join us. Talk with Tom is 100% free, and there are special benefits available only to our subscribers, so be sure you subscribe yourself on iTunes or wherever you get your podcasts, and we look forward to seeing you right back here on the last Wednesday of every month with Talk with Tom.

Goals Series #3: Three Ways To Stay Motivated To Reach Your Goals

 

#GrowYourLife  #BuildYourBusiness

Life Area: Personal

Topic: Goals Achievement

When I was engaged by yoga and athletic apparel company Lululemon to train their Denver area sales people on Goals Achievement I was asked multiple times from the workshop participants, “How can I stay motivated to reach my goals?”  We’re all capable of improving, regardless of what natural abilities we were born with or without. It’s important then to acknowledge our successes or failures and remind ourselves that they are a direct result of our own effort or lack thereof, not of factors outside our control.

It’s the difference between having a “fixed mindset” or a “growth mindset”. Download this FREE infographic – Growth Mindset vs Fixed Mindset – from my FREE Resources page on my website to learn more.

growth mindset vs fixed mindsetA “fixed mindset” assumes that our abilities can’t be changed in any meaningful way, and success or failure is the reinforcement of the traits we were “born” with. On the other hand, when we have a “growth mindset,” we see obstacles and challenges as opportunities for growth beyond our existing abilities.

These two mindsets spur a great deal of our behavior so it’s essential to recognize if you tend toward a fixed mindset and try to shift your thinking toward a growth mindset.


A growth mindset will keep you trying when you hit obstacles.


When we are hungry, cold, or feel in danger, we have no trouble finding the “motivation” to eat, stay warm, or get somewhere safe. But when comes to everyday situations that don’t hold a life or death outcome, we suddenly find ourselves searching for the “motivation” to make it happen. This happens all too often when it comes to setting and achieving our goals.

Here is this third of a three-part blog Goals Series, I offer up 3 ways to stay motivated to reach your goals:

Maslow’s Hierarchy of Needs

 

According to Maslow’s Hierarchy of Needs as devised by Abraham Maslow, once basic needs such as food, water, and safety are satisfied, humans are naturally motivated to embark on an ongoing quest to reach our full potential.

So is it really the problem of lack of motivation? Or are we just having trouble following through?

Often the problem is our misguided concept of motivation itself. Read on to learn three ways to think about motivation differently in order to achieve your goals >>>


Download my FREE 7-Day Goal Setting Challenge – A Guide to Help You Set Your Goals, Create a Plan of Action and Begin Achieving Them IN ONLY A WEEK! I describe it in detail in this Talk with Tom podcast episode on the subject [here].

What if you could radically and positively transform your life in EVERY ONE of the 7 Life Areas (Personal, Physical, Professional, Financial, Relational, Spiritual, and Philanthropical)?

That’s right, your relationships, your health, your career, your finances, your fun and leisure, and even your level of contribution to the world? My FREE 7-Day Goal Setting Challenge will help you determine where you are, where you want to be, and what you want, to create the life you want, IN ONLY A WEEK! Download it for FREE [here].


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Success Series Affirmations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

#SuccessSeries  #Affirmations  #GrowYourLife  #BuildYourBusiness

Find more of these Success Series Affirmations on our Twitter and Facebook pages!

Goals Series #2: How To Reach Your Goals

 

How To Reach Your Goals in 2018#GrowYourLife  #BuildYourBusiness

Life Area: Personal

Topic: Goal Achievement

Do you want to make this year your best year ever? Keep reading and I will give you 4 key tips for how to do it.

One of your most valuable financial assets is your earning power. They call it your human capital. To earn more you have to constantly increase your value. The only way you can create more value for yourself this year is to learn and apply new skills that allow you to get better results.

Imagine climbing a mountain. Base camp is when you first start your career. Perhaps you’ve just graduated college and you’re now going out into the world seeking a first job that best fits your newly acquired education with your passion and desires. When you start at the bottom of mountain (Base Camp), most people have no earning ability, but after 10 or 20 years some are earning 20 to 50 times more than others! Even though they started out in the same place.

What’s Their Secret?

 

The difference is that the top performers, continually learn new skills as they go through their careers —  be it corporate America, musician, or entrepreneur. Like climbing a mountain, every new skill brings you to Camp 2 then Camp 3, another step closer to the summit. As you scale the mountain, you increase the value of your contribution. This, in turn, increases your ability to earn more money. If one of your goals is to earn more money this year, then create more value. It’s as simple as that.

Focus on these 4 skills to continue your trek up the mountain and make this year your best year ever:

 

Tip 1:    Write Better Goals

 

how to reach your goals in 2018Some people don’t know where to start and wonder how to write goals. Ask yourself this question:

“Where do I want to be in 12 months?”

Write down one major goal for each of your 7 Life Areas (Physical, Financial, Professional, Spiritual, Relational, Personal, and Philanthropical) that you want to accomplish in the next 12 months using the SMART goals definition. Look at your goals that you have written down and think to yourself, “If I could wave a magic wand, which one goal would have the greatest impact on my life … would most move the needle?”  As Gary Keller puts it in his bestselling book The One Thing,

 

“What’s the One Thing I can do such that by doing it everything else will be easier or unnecessary?”

 

For most of us, it’s a financial goal. For some of us it might be a fitness goal, a relationship goal, or a business goal, but for most of us it is a financial goal. You can still use these tips on any goal.

 

Tip 2:   Focus On One Skill At a Time

 

 Write down that One Thing very clearly and set a date for its attainment. Then make a list of everything that you can do to achieve this goal using my friend and mentor Brian Tracy’s ABC Method. Then, the next question you want to ask yourself is:

 

“What one skill will help me the most to achieve this goal?”

 

Think about all of the skills that you have and if you determine you don’t have the skill(s) that it would take to achieve that goal then focus on learning one skill that can help you achieve that most important goal.

This formula is the reason why people go from the bottom to the top of the mountain. The most successful people are very clear on where they are and where they want to be.

You must have very clear goals. Then you must be very clear about the skills you must acquire that will get you to each result/outcome you desire. When you acquire new skills, it helps you climb the mountain, every step (skill) increases your value. When you increase your value, you open up new opportunities for yourself. Keep adding new skills and keep growing to achieve your goals.


Download my FREE 7-Day Goal Setting Challenge – A Guide to Help You Set Your Goals, Create a Plan of Action and Begin Achieving Them IN ONLY A WEEK! I describe it in detail in this Talk with Tom podcast episode on the subject [here].

What if you could radically and positively transform your life in EVERY ONE of the 7 Life Areas (Personal, Physical, Professional, Financial, Relational, Spiritual, and Philanthropical)?

That’s right, your relationships, your health, your career, your finances, your fun and leisure, and even your level of contribution to the world? My FREE 7-Day Goal Setting Challenge will help you determine where you are, where you want to be, and what you want, to create the life you want, IN ONLY A WEEK! Download it for FREE [here].


 

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Talk with Tom: Episode #27 | TwT Motivational Minute: Acquiring Wealth

 

In this Talk with Tom Motivational Minute, Tom shares the 3 most important steps to acquiring the wealthy lifestyle you want to lead.

Every month, in just 30 minutes, Tom shares topic after topic to Grow Your Life and Build Your Business. If you’re not already a subscriber, join us. Talk with Tom is 100% free, and there are special benefits available only to our subscribers, so be sure you subscribe yourself on iTunes or wherever you get your podcasts, and we look forward to seeing you right back here on the last Wednesday of every month with Talk with Tom.

Goals Series #1: 5 Cash Flow Goals Every Small Business Should Have

 

5 small business cash flow goals#BuildYourBusiness

Life Area: Professional

Maintaining cash flow positive is something that many small businesses struggle with. After all, it only takes one or two late net 90 clients and you may find yourself among the 90 percent of small businesses who fail every year due to cash flow problems.

Setting goals for cash flow management can help make sure you have a profitable business and enough cash to offset your monthly expenses. Here are five cash flow goals that every small business should aim for:

 

5 Small Business Cash Flow Goals

 

1) Pay attention to margins

By “margins”, I mean both gross margin and net profit. Gross profits are what are left over once you subtract the cost of goods sold. Margins vary by industry, but there are some things you can do to ensure yours are healthy. That includes controlling the cost of materials, labor, and setting the right price point.

Don’t forget your net profit margins (before taxes are paid). This is what’s left from your gross margins after your expenses have been paid. If your net margins are below 10 percent, you should reassess all the above. A good goal is a minimum 10-20 percent. Grocery stores run 3-4%, home builders 8-10%, and suppliers can run as much as 25-50%, so be sure to compare yours to the relevance of your industry.

 

2) Pay yourself a salary

It’s not uncommon for new business owners to work uncompensated. However, many continue doing so even when they start turning a profit. It’s believed that as many as 90 percent of small business owners underpay themselves.

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