Understanding The Key Elements of a Solopreneur's Financial Ecosystem
04/13/22 | Dana LaRieal Morales
In this episode, I give you some key information you need regarding budgeting for both your business and your personal life. Understanding your financial ecosystem is important when planning and focusing your actions. It helps you develop your strategic plan with facts in mind instead of guesses and assumptions.
Join us on April 24th, 2022 for a live webinar where I show you how to develop your budgeting spreadsheet by taking all the information I share during this episode and putting it into an easy-to-understand template. If you miss the live session, you can catch the replay in the Organized Academy Vault.
DISCLAIMER: This information is based on my experience in my business and in coaching others in the areas of financial ecosystem development. Make sure to do the research for yourself if you question anything that is shared with you in this episode today.
- Identify the entry points of your income
- You need a holistic view of your income, tracking all of the different income points
- You don't want things coming in that are not accounted for in your financial ecosystem.
- Your point of sale/payment processors like Stripe, Paypal, Square, etc.
- Identify the exit points of your expenses
- Do you know where your money is going and how it is being spent? Automatic payments, other participants in your business,
- Categorizing your income
- What action is giving you the highest return on investment (most beneficial) in your business or your life?
- Being able to analyze and forecast your income over time.
- Enable you to compare like with like efforts
- Tracking non-financial activities that can eventually lead to financial gains
- Categorizing your expenses
- There are systems that we pay for that we don't need to - analyzing your expenses will help you see areas where you can cut expenses
- Makes it easier to identify deductible expenses for your taxes
- Flagging fees as their own category and splitting income accordingly
- Categorizing these fees as an expense and not lumping them into income.
- It also helps you identify where you may have unnecessary expense bloat.
- Breaking down all fees (payment processor, sales tax, other fees) from income. Don't lump them together into a "fee category" instead, categorize these as well.
- Analyze your numbers
- This gives you a true picture of what is really happening
- Is your pricing set right
- How much profit are you making on each item
- Do you need to cut expenses by finding new suppliers/products
- Do you need to end a particular offering and focus on another
Check out the podcast episode above to get all the details I shared regarding the items above.
Connect with Me:
The Organized Holistically podcast strives to teach side-hustling solopreneurs how to manage a successful business and life using holistic systems. I help you develop, implement and streamline unique and organic processes and organizing systems. I do this by helping you identify the right systems and processes so you aren't spending money or time on unnecessary things and instead can spend that time and money focusing on the things that are most important to you, your family.