Why Setting Financial Goal For a New Entrepreneur Can Feel Scary

When I transitioned from and employee to an Entrepreneur, I felt very uncomfortable to set a financial goal, as I was afraid of not reaching the goal. When I was an employee, I was mentally programmed to get paid for the hours I worked. However, that is not the case for an entrepreneur. As entrepreneurs, we get paid for results, solving problems and our creativity. This fact reinforced my fear of not achieving the goal. Over a period of time, I discovered that it is OK to set a financial goal, but constantly keep these two things in mind while pursuing your financial goal:
1. Be emotionally detached from the financial goal/money itself.
2. Be inspired and give focused attention and energy to “WHY” you set the financial goal and WHAT you want to do with the money.
With that said, as an entrepreneur it is very essential that you set your financial goal. A goal must be a ( SMART) one-S-specific, M-measurable, A-achievable, R-realistic and have a T-timeline. Let us say you set a goal of making $10000 in next two months. This is a SMART goal if you have at least made say $5000 in the previous two months. You have set a time line of two months, and it is specific, measurable, achievable and realistic. If you have never made any money in your business, then this is a not a realistic goal.
“Questions To Ask When Setting Financial Goal”

Next, it is not the goal itself that will drive you to achieve it, but what the goal means to you WILL ONLY pull you towards the goal. What would you do with this money? Would it help you support your family? Would it mean going on a family vacation? Would it mean expanding your business ? What percentage of earnings will you donate to charity? Would it mean pursuing your hobby that you had given up for want of money? When my clients set their financial goals, these are the questions I come up with. Most often I immediately get an answer -”I am not making $10000 NOW. When I make $10000 in next two months, I will decide on how I will spend my money”.

Most often we put off asking those questions, because we do not have that much amount of money NOW. I have been there. I would suggest asking those questions and start putting away money for that purpose right now . Let me give you an example. In 2002 When I started as an Entrepreneur, I knew that making $10000 in 6 months was a big deal, because I have never owned a business. My biggest “WHY” is to spend more time with my family, provide for my children’s’ education, have regular family vacations and be a mentor to my kids. I always wanted to contribute a certain percentage to charity, offer financial support in my children’s education, contribute for my family’s vacation and invest in personal development and business coaching. These were my motivating factors. Hence when I received my first check, I created savings accounts for each of these purposes and was able to easily contribute. This act made me feel that I am already living my dreams. The key here is the intention and not the amount. Hence when I set bigger financial goals, I had crystal clear answers to the questions mentioned above. This way I was motivated to take consistent action towards reaching my goal.

As you can see I was doing the thing NOW, that I WANTED to do eventually. This is referred to as ACT AS IF principle. This does not mean faking, but means setting true intentions, taking small steps that lead to bigger success. Why should you do this way?

According to Michael Jude here are the three reasons:

First, YOU are affirming your success.

By doing NOW, you are no longer WAITING. You are practicing today.
As you are having a good time and living the life you want to live, people are drawn to you like the magnet and they want what you have.
Here are the ACTION exercises:

Even if you have a job with regular income, make a commitment to start your own business by doing small projects as a Freelancer.

Set a Small financial goal and using the principles above start doing NOW what you WANT to do if you were not to work for a LIVING.