I admit that in the past, I was put off by certain business coaches because their brands were way more money-focused than heart-centered. If you're feeling that way because I brought up the M word, I invite you to take a deep breath and recognize this simple truth: if your business isn't making money, your work is not reaching the right people.
You didn't set out to inspire at your expense, did you you?
Let's face it: our business needs to earn money. If our business is not earning enough, it becomes a costly, time-intensive hobby.
In other words, a serious energy drain.
If you're joining us from the Finding Flow challenge, we recently talked about how to keep the money energy flowing—the right way—in our business.
Hint: it all starts with energy management.
Part of managing our energy is being able to rest easy knowing that we are being appropriately compensated for all of the time and energy we are expending. But it's more common than not in the purpose-fueled business world to overwork and under-earn.
We have to take care of ourselves—especially if our work in the world is to give to others.
The most straight forward way of figuring out just how much we need to be making in order to merit this kind of energy investment is the financial ease formula.
Oh yes, the Financial Ease Formula
Financial Ease = the dollar amount you / your business need to earn in order to spend appropriately, get out of debt, save at least 10% or more annually and live your Ideal Life
Here's what it looks like...
*Financial Ease = the dollar amount you / your business need to earn in order to spend appropriately, get out of debt, save / invest / donate enough annually and live your Ideal Life
- What are your estimated monthly business expenses? ->> find that and multiply by 12
- How much would you like to pay yourself / earn in salary each month? ->> discover that and multiply by 12
- How much would you like to save / invest / donate each month? ->> discover that amount and multiply by 12
- What profit margin would you like to see each year? ->> if you don't know, choose a healthy percentage :)
- How much do you want to set aside for vacation, time off or other large expenditures (including getting out of debt)? ->> decide on that then add it to the above figures
So, now what?
These are the actions that I assigned to the Finding Flow group last week:
- Define your financial ease amount.
- Take a look at your business financials, including profit and loss (income and expenses).
More money and more meaning in your purpose-driven work? Sweet!
Let's keep the conversation on money going! Pop on over and join the Kula today.