E53 | Know your numbers
Manage episode 354350716 series 3326046
We hope you’re all well and have had a great week so far?
On this week’s episode we’re highlighting how important it is to know your numbers!
A way we can all have piece of mind in knowing we have the right amount of income, enquiries and bookings to make this a reality, and to feel empowered to price our services confidently, is to fully understand our numbers!
We discuss starting with calculating your personal living costs, the costs of doing business, and move onto the deductions you’ll need to know about ie: Tax, NI, Pension contributions, how to calculate profit and finish by highlighting the importance of making sure you’re consistently tracking all of your financial and performance data.
Jules prepared a helpful breakdown example of calculating exactly how much revenue your business would need to make if you needed £30,000 to live.
(Figures are created for illustration purposes and using UK Tax & National insurance deductions, as at January 2023).
£30,000 per year to live
£6000 business expenses
£30,000 + 6000 = £36,000
UK tax allowance - £12,570
Therefore, taking the £30,000 per year needed to live and deduct the tax allowance of £12570 = £17,430
(Now consider 20% tax and around 11% National insurance of £17,430, would be around £5229 in deductions) and added together (£22,659) + 12570 = £35,229
So, your personal expenses to live of £35,229 + £6,000 Business expenses = £41,229
**Which means that to earn and enjoy £30,000 in real terms each year, your business would need to generate £41,229 as a minimum in REVENUE.
Also, consider that you’ll want to include a buffer into this if you want to be able to save, pay for holidays, unforeseen expenses.
If we can help any further or you have any thoughts on today’s topic, we’d love to hear about them so please hit us up on the socials at: @weddingmavericks (https://www.instagram.com/weddingmavericks)
Take care everyone and have a great week,
Jules & Lyndsey
The wedding mavericks podcast is all about building successful and sustainable wedding photography & videography businesses.
You can find out more about the wedding mavericks here: https://www.weddingmavericks.com or firstname.lastname@example.org
If you want to learn more about our wedding videography and photography business 'Your Story Studios' please visit our website: https://www.yourstorystudios.co.uk
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