As the last holiday decorations were packed away and the calendar flipped to January, Emma Carlisle, owner of Carlisle Creative, felt the excitement of a fresh start. The past year had been a whirlwind of new clients, completed projects, and unexpected challenges, but now it was time to look ahead. For Emma, the new year wasn’t just about making resolutions but about setting actionable financial goals to help her business grow and thrive.

But like many creative professionals, Emma sometimes struggled to balance her artistic vision with the financial side of her business. That’s why she decided to work closely with Number Crunchers® to develop a solid financial plan for Carlisle Creative this year.

Here’s how Emma tackled her financial goal-setting process—and how you can too.

Step 1: Reflect on the Past Year’s Performance

Before setting any new goals, Emma sat down with her advisors at Number Crunchers® to reflect on Carlisle Creative’s performance over the past year. Together, they reviewed her financial statements, including the profit and loss statement, cash flow report, and balance sheet. This gave Emma a clear picture of where her business had succeeded and where it needed improvement.

Looking at the numbers, Emma realized she had increased her revenue by 15%, thanks to some major client projects. However, her expenses had also grown—particularly in areas like software and marketing—leaving her with a slimmer profit margin than she had anticipated. Additionally, she noticed some cash flow issues, particularly during the slower summer months, that she wanted to address in the coming year.

Lesson Learned:

Emma knew that reflecting on her financial performance was a critical first step. Understanding her strengths and weaknesses allowed her to set realistic, data-driven goals for the year ahead.

Step 2: Set Clear and Measurable Goals

With the past year’s performance in mind, Emma was ready to set her financial goals for the new year. But this time, she was determined to be more specific. In the past, Emma had made vague resolutions like “grow my business” or “increase revenue.” Still, this year, she worked with Number Crunchers® to turn those ideas into SMART goals—specific, measurable, achievable, relevant, and time-bound.

Emma’s top financial goals for the new year included:

  • Increase revenue by 20% by expanding her client base and offering new services, such as brand strategy consulting.
  • Improve cash flow by implementing a quarterly budgeting system and reducing unnecessary expenses.
  • Increase her profit margin by 10% by reviewing her pricing structure and optimizing her project costs.
  • Contribute 15% more to her RRSP, planning for long-term financial security.

Tip:  When setting financial goals, ensure they’re clear and actionable. Instead of saying “save more” or “increase revenue,” give yourself specific targets, like saving a certain percentage of your income or securing a set number of new clients.

Step 3: Create a Budget Aligned with Your Goals

After setting her goals, Emma’s next step was creating a budget aligned with those objectives. Working with Number Crunchers®, Emma developed a detailed budget for the year that considered her expected income, expenses, and savings targets.

The team broke down her revenue goals into monthly and quarterly targets, allowing her to track her progress throughout the year. For expenses, they identified areas where she could cut back, like reducing unnecessary software subscriptions and streamlining her marketing costs.

Emma also built in some flexibility for unexpected expenses, knowing that running a creative business could come with surprises. By creating a solid yet adaptable budget, Emma felt more in control of her finances.

Lesson Learned:

A well-planned budget is essential for achieving your financial goals. Ensure your budget reflects your revenue targets and spending habits, allowing you to stay on track and avoid financial stress.

Step 4: Improve Cash Flow Management

One of the biggest challenges Emma faced last year was inconsistent cash flow. Like many creative professionals, her business experienced highs and lows throughout the year—booming during the busy spring and fall months, but slowing down in the summer.

Emma worked with Number Crunchers® to create a cash flow forecast to avoid this feast-or-famine cycle. They projected her monthly income and expenses, identifying periods where she might need extra cash reserves. Emma also decided to set aside some of her profits from the busier months to cover leaner times, giving her business more stability year-round.

Tip: Create a cash flow forecast if you struggle with seasonal cash flow fluctuations. This will help you anticipate periods of low revenue and ensure you have enough cash on hand to cover expenses.

Step 5: Plan for Long-Term Financial Growth

While Emma was focused on growing Carlisle Creative in the short term, she also wanted to plan for long-term financial stability. With guidance from Number Crunchers®, she set a goal to contribute 15% more to her Registered Retirement Savings Plan (RRSP) this year. This move not only helped her save for the future but also provided immediate tax benefits.

Additionally, Emma considered expanding her team in the coming years and knew that having a healthy financial foundation was essential for sustainable growth. With the right financial plan in place, she could confidently take her business to new heights.

Lesson Learned:

Don’t just focus on short-term financial goals—plan for the future. Contributing to your RRSP or investing in long-term growth strategies can provide both financial security and peace of mind.

Conclusion:

As Emma wrapped up her financial planning session with Number Crunchers®, she felt energized and ready to tackle the new year. By reflecting on the past, setting SMART goals, creating a budget, improving cash flow, and planning for the future, Emma had laid the groundwork for Carlisle Creative’s continued success.

The new year is the perfect time to reassess your financial goals and ensure your business is on track for growth. Follow Emma’s lead and start planning today—you’ll be surprised by what you can achieve with a clear financial roadmap.

Call to Action:

Start Your Financial Journey with Number Crunchers® today and discover how we can support your business’s growth and help you achieve your goals. Whether you need help setting financial goals, budgeting, or managing cash flow, we’re here to guide you every step of the way.