Your Business Milestones May Be in the Thousands, But Even £1 Is Worth Celebrating
New business owners are often chasing that six-figure business goal. Where that number came from is anyone’s guess. Perhaps, £100,000 is just a nice round number and sounds like someone who has “made it.” But, £100,000 can take a while to get to, especially if you are talking profit, not revenue.
In January, we talked a little bit about how to set business goals, but you also need to set small milestones along the way to really big business goals. Sure, £100,000 in a year may be the number where you feel you’ve “made it.” But, what is your profit goal for this year? For a business with a lot of overheads, breaking even in the first year or two could be huge. 10 sales per month are amazing for a business starting from scratch. Every £1 you make represents someone who was willing to pay for something you made.
Every £ Is Data
Every sale a startup makes not only brings in money but provides the business owner with valuable data. You could talk to your customer and find out why they purchased from you and what problem your product and service solves for them. While you are small, you can take the time to build a relationship with your clients and uncover what their pain points are and, therefore, how you can make your product or service more attractive to that client type.
In addition, every sale you make can help you realise things about your financial state. Like:
- How much does it cost you to offer each product or service?
- Do you make a profit once you account for your labour?
- Does your profit margin allow you to scale, or does it put a ceiling on how much you can make before you have to expand?
- Are there things you can automate or outsource to increase profitability?
So, every sale is a win.
What Money Milestones Should I Set For My Business?
When you first start your business, your first sale should be your first milestone. Then, 10 sales should be your second.
After that, set milestones in amounts that make sense for your business. That could be every £1,000 or could be every £10,000. It could be revenue or profit. Do what makes sense for you. Just allow yourself to feel the little wins. Because, honestly, the first few years can be so difficult because you are consuming content from business “gurus” who are hitting £10k months, and you are only making a handful of sales. Celebrating the sales you do have coming in can help you stay upbeat and optimistic about your startup.
Get excited about your business again. People are buying from you, that is huge. You don’t need to be raking in cash the first few months; it could take you a year or two to hit £10k months, so you might as well enjoy the journey. What are you going to do otherwise; be miserable and not celebrate the fact that you are out there building something? What you are doing is huge and difficult. Most people will never know how much work goes into starting a business. You deserve to recognise the fact that you are doing something amazing.