Achieving entrepreneurial success isn’t just about profits; it’s about gaining the freedom to enjoy your life outside of work.
This is where the “Freedom Metric” comes in—a personalized financial goal that signifies when your business has reached a sustainable level of success and stability. It’s a comprehensive measure that factors in your expenses, investments, and fiscal duties, evolving with your business.
In this post, we’ll guide you through calculating your Freedom Metric and offer practical tips to manage your finances effectively, helping you build a business that supports the lifestyle you aspire to.
Lets dive in.
Ready to define your Freedom Metric but not sure where to start? Book a call with Outsourced Doers for personalized guidance and take the first step towards financial clarity and freedom in your business
What is the Freedom Metric?
The Freedom Metric is a personalized financial benchmark for entrepreneurs, symbolizing the moment a business shifts from stress to liberation.
It’s not merely a revenue goal but a holistic representation of financial stability, encompassing personal and business expenses, growth investments, and responsibilities.
As a dynamic target, it evolves with the business, serving as a guide towards a future where financial concerns are secondary, allowing business owners to focus on growth, innovation, and enjoying the rewards of their hard work.
How to Calculate Your Freedom Metric
To calculate your Freedom Metric, start by jotting down your monthly budget. This will be broken down into five core categories.
Let’s break them down:
- Personal Expenses: Identify your personal expenses, which typically include four to six major categories such as mortgage or rent, food, household bills, children’s expenses, and car expenses.
- Business Expenses: Note down your business expenses, which may include office rent, staff wages, and subscription software services.
- Savings: Allocate a number for both personal and business savings. This is an essential part of your budget that should not be overlooked.
- Advertising: Determine your monthly advertising budget. For example, if you plan to spend $100 a day, your monthly budget for advertising would be $3,000. Adjust this number based on what you’re comfortable with once you’re hitting your freedom metric.
- Taxes: Estimate the amount you’ll need to set aside for taxes. This percentage will vary depending on your location and could be anywhere from 20% to 50%. Insert the percentage that applies to your situation to ensure you’re saving enough of your revenue for tax purposes.
By focusing on these actionable tips, you can effectively manage your finances, reduce unnecessary expenses, and move closer to achieving your Freedom Metric.
Remember, this doesn’t need to be a 300-line budget. Focus on the significant expenses, and always round up to be conservative.
Need a hand crunching the numbers or strategizing your next move? Get in touch with the experts at Outsourced Doers and let’s work together to fine-tune your financial goals and business strategy.
The Power of Simplicity
The beauty of the Freedom Metric is its simplicity. You don’t need to get bogged down in the minutiae. Focus on the big expenses and categories that matter most. If an expense is over $1,000 per month, give it its own line. Otherwise, group smaller expenses together.
The Surprise Factor
Once you’ve mapped out your Freedom Metric, you’ll be in a better position to craft an irresistible offer for your clients.
And here’s the exciting part: you’ll likely discover that you need fewer clients per month to achieve your Freedom Metric than you initially thought.
This realization can be a game-changer for your business strategy and mindset.
Final Thoughts
As we wrap up, remember that the Freedom Metric isn’t just a figure on a spreadsheet; it’s a reflection of the business lifestyle you’re working towards. It’s about creating a business that not only thrives financially but also grants you the freedom to enjoy the fruits of your labor.
By focusing on the key areas we’ve discussed, you can streamline your path to financial clarity and take control of your entrepreneurial journey.
If you’re ready to turn these insights into action and want a partner in navigating your business’s financial journey, book a call with Outsourced Doers. Let’s make your Freedom Metric a reality and set your business on a path to true freedom.
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