Entrepreneurs typically start their businesses to have some sort of freedom: Freedom to be your own boss, freedom to spend more time with your kids, freedom to travel, or whatever your “why” is.
However, so many business owners end up getting bogged down with the day-to-day of running their businesses that they no longer get to focus on their passions or get to do their “why”.
Our goal is to help you design or re-design your business model and get back that freedom so you can live the life you want.
To get you back on track of living in freedom like you truly want, you need to look at your finances. We’re going to take a deep dive into your profit mechanism, which is essentially your cost structure and revenue streams. Everything in your business affects your profit mechanism!
Costs aren’t just monetary, your key resources, partnerships, and key activities (your time) are also a cost. Once your costs are listed out you can go through them and identify your variable and fixed costs. Identifying all of your costs helps you see where your money is going every month.
Once you have a true understanding of where your money is going you can make changes if you see you’re spending money in unnecessary areas. Freedom isn’t only based on money but it is typically a large part of it. The second biggest factor is usually time. Your time is incredibly important and if you’re spending too much of it doing business tasks then you’re spending less of it on your “why” which is why it’s so important to monitor how you’re spending your time.
Revenue is your next focus when designing your freedom-based business. Your revenue comes from the value that you’re delivering to your customers and clients. The value that you provide is the foundation and the center for your whole business. Everything you do revolves around what you can do for your client. You need to be structuring the services you offer with your freedom in mind. Again, this goes back to considering your time for your freedom. Next, you need to look at your pricing to make sure it covers your costs and covers the freedom-based life that you want to live (within reason).
Online businesses come with a big advantage because it comes with no or a very small overhead which is perfect for a freedom business model. Generally, all you need is internet and a laptop, maybe some software as well and you’re good to go! This should keep your costs low while allowing you unlimited potential to grow your revenue which in turn gives you more freedom.
Your freedom is ultimately based on you and how much you balance it. Yes, it will take time to find the right balance but anything worth having is worth working for and you’ll appreciate your freedom so much more when you get the balance right! Your business model isn’t set in stone, this will always be a work in progress as your life and your needs change.
Your goal is to cut costs while increasing revenue. But we want you to be mindful that you don’t take it too extreme. Don’t cut too many costs to the point that it starts to negatively affect your business. Whether that be monetary expenses or your time, some costs are necessary. The same principle applies to your revenue. Yes, you can grow your revenue as much as you want! Just don’t get carried away with charging prices that you can’t justify. There are many business management tools out there, like Honeybook, which will help you manage projects, book clients, send invoices and get paid.