This is a basic question that I would bet the majority of business owners don’t know the answer to. Another way to phrase it is, “What will it take for you to be satisfied?”. This could be used in many ways, financially, socially, emotionally, or all of the above. Most business owners will tell you that they will never be satisfied, that they will always want more.
That’s the problem, we always want more, so we chase it, and keep chasing it. “If I can just get 5 more sales this year I’ll be set.” Then you get those 5 sales, and you find that you just need 5 more next year and the year after.
Why do we need to budget our businesses to grow a certain percentage each year? Because we have been trained by business owners and corporations that if you aren’t growing, you’re dying. I disagree! If you are constantly chasing more, you’re not living. By learning to live with More Than Enough, we can have successful businesses and successful personal lives. When you have a successful personal life, it will attract more than enough business!
I use a spreadsheet every year for planning and the Enough Worksheet is the first thing I do. Here is a brief outline of how the Enough Worksheet works.
First the not-fun part. Add in your basics: all of your basic household needs, business expenses, taxes, debt payments, etc. This is your family’s enough, the amount of money that it takes to survive, not thrive, or even be happy, for that matter.
Now add in your More Than Enough, this is the fun part.
What do you do weekly/monthly to make your life more enjoyable or easier? Going out to dinner, date night, wine, treats, shopping, wine, movies, coffee, dog grooming, wine, mani-pedis, beer, fishing equipment, gym, poker night, wine.
Now the really fun stuff, the big stuff. Add in vacation, big toys, a new car, etc. Be careful here, make this realistic, we are making a “More Than Enough” list, not a “Just Won the Lottery” list.
I suggest you break these big items into a percentage, so let’s say you take a big vacation every other year, then put in 50% for this year. Or if you want to buy a new car every 5 years, put in 1/5th of what the care you want costs.
Next, put in how much you want to give back to your community, donations, raffle tickets, etc. Lastly, don’t forget to put money away for retirement. Don’t say, “I’ll never retire”, it’s not always your choice!
When you’re all done, add it all up. Yep, you’re going to be shocked, it sure adds up quickly. Go back and review your numbers and adjust where you can but stay realistic. Then subtract what your spouse brings home and what’s left is up to you. Break it down into pieces by dividing it by your average commission, less splits, and now you know how many homes you need to sell this year. Now you can do your marketing plan and budget to hit your More Than Enough. It’s important to know where you’re going first when you do your planning. Knowing what your Enough is, will help you obtain your More Than Enough.
This is a very simplified explanation, if you would like a copy of my Enough Worksheet, which will outline in detail, please reach out, you can always reach me via email at brad@bradstaplin.com.
Thank you, I truly appreciate your time.
Brad