Last week we were reviewing income sources for the past 3-4 years in order to set new income goals for 2011.
After you have your goals, it’s time to figure out how the money will come in.
This was the next step (the 7th step) I took for myself in the process, and here’s how I did it.
Time to create another spreadsheet!
Record all of your areas of income in the left column. Across the top, you’ll list the months, January through December.
Under the corresponding months, you’ll note your major events: exhibits, festivals, sales, trade shows, and so forth. This gives you a visual as to where most of your activity will be happening.
Based on previous performance and new goals, divvy up your income goals across the columns.
Let’s say your goal is to make $2400 from selling greeting cards, calendars, and other low-end products.
It’s too easy to add $200 to every column (12 x $200 = $2400), and you know that’s not the way it usually works. Some months see stronger sales than other months, which is why, as I mention above, you consider your planned activity.
Take care to understand when and how the money will come in. If you do this exercise without thorough deliberation (number crunching!), you won’t reap the benefits.
After you have input all of the figures, total each row and each column.
Do the rows equal your final income goals in each area?
Are the monthly figures realistic, yet challenging?
Where are your slow months?
What will you have to do to account for less income during those periods?
Are you actually doing this process with us? How are you doing on it?
If you aren’t, why not?