u/FinancialFluentCEO

Entrpeeneurs who stress least about money don't start with what they hope to earn. They start with what they need make to survive.

The founders I work with who feel most confident about their numbers have one thing in common: they budgeted in reverse.

They don't ask themselves: "How much do I hope to make?"

They ask: "How much do I need to make to survive?"

Here's a 5-step framework to help you come up with that figure:

  1. Calculate your one-time startup costs (entity, legal, tech)

  2. Add monthly fixed business costs — the expenses you have to pay if you make a sale or not

  3. Add your personal expenses — yes, yours count too

  4. Multiply your total by 6–9 months — that's your runway target

  5. Divide your target by the expected revenue per client — that's your sales goal

Most people skip steps 3 and 5. Step 3, because it feels uncomfortable. Step 5, because it turns hope into math.

The math is actually the kinder option. It gives you a target, not a prayer.

Are you budgeting forward or in reverse?

I help first-time founders become financially fluent CEOs so they can run their business with clarity and confidence.

reddit.com
u/FinancialFluentCEO — 16 days ago