FINANCES: Goals

We've spent so much time talking about our five stages (idea - content - product - platform - marketing) that we have yet to mention money! That's definitely part of our overall master plan! We want to be able to make a comfortable living from our writing and selling, don't we?

Um, that's a loud YES!

In terms of finances we need to do three things:

1. Track expenses.
2. Track income.
3. Make a profit.

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TRACK EXPENSES:

We are not just writers, but business owners and we need to think professionally about our finances. We need to keep track of our expenses. This goes for every expense we've incurred on all the five stages. We separate expenses into two categories:

1. Fixed
2. Variable

Fixed expenses are the unchangeable costs that go into creating, producing, and distributing eBooks. The fee that our platforms require and our web hosting are fixed expenses. They stay the same.

Variable expenses are the lion's share of our expenses and will be the changeable costs like graphic and web designer fees, cover costs, marketing costs, POD costs, and audiobook costs.

Designing an expense sheet is a lot like creating a household budget. We must accommodate every single possible cost associated with eBooks. Also, keep track of all business-related receipts.

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TRACK INCOME:

Every sale we make must be tracked - both because it's fun to see how many books we sell, but also so we're heading in the right direction.

It's pretty easy to track income. Tally up the amount of sales at the end of each month, quarter, and year. Compare this year's sales to last year's and so forth.

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MAKE A PROFIT:

We must make a profit; otherwise, we'd be losing money every month and not be able to sustain ourselves. Our eBook costs must be offset by both our eBook price and the volume of sales.

Profit is what is left over after expenses have been subtracted from income. Don't be surprised if you don't make a profit for months - even up to a year or two! Most small businesses and endeavors don't make a profit when they first start out. But, of course, it is the eventual goal.

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FINANCES SPREADSHEET:

The easiest way to track expenses, income and profit is to create a spreadsheet. There are plenty of business finance spreadsheets to help you.

Set aside a specific time during the week to update your finances spreadsheet. It is just as important, if not more so, to see what direction you're heading. You can also see if you're spending too much in one category or too little in another.

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FINANCE GOALS:

Goal: Create finances spreadsheet.
Timeframe: 20 minutes to create, 2-3 hours to fill in.

Week 1: Create finances spreadsheet.