Give Your Profits a Purpose with SMART Goals

There’s no point in setting money aside without a clear plan. Many business owners withdraw profits as needed, but this lack of structure hinders both business growth and financial security.

Your net profits should be distributed into four key areas:

1. Fixed costs for the next month
2. Emergency fund
3. Reinvestment/Growth goals
4. Business owner’s drawings

Reinvesting in your business is essential for growth—whether it’s buying assets, upskilling, or expanding operations.
‘SMART goal setting’ is a tool which will make all your growth goals achievable:
S – Specific: Be very specific about your goal.
M – Measurable: Measure how much money would you need to achieve that goal.
A – Achievable: Make it achievable by putting aside money for it month on month. 
R – Reasonable: Be sure to prioritise your goals
T – Time bound: Put a clear timeline of when you want to achieve the goal. 

This tool allows you to be more specific with your goals, helps you prioritise your goals and measure your goals to being them into reality.
This approach gives purpose to every pound and makes success more achievable.

What are your SMART goals for this year? Let’s create a strategy for your business finances. Get the free E-book to gain clarity and take control of your cash flow.

Written by
Mrudula Muralidharan
Finance Coach and Founder
Million goals