A clear destination makes it easier to create a budget that gets you where you want to go.
Last week, we kicked off our 2027 planning season by talking about why fall is the perfect time to create your budget and financial game plan for the year ahead.
But before you start filling in revenue projections, payroll budgets and operating expenses, there’s an important question to answer:
What do you want your business to accomplish financially in 2027?
A budget shouldn’t determine your goals. Your goals should help determine your budget.
Why Financial Goals Come First
It’s hard to build a meaningful budget when you don’t know what you’re trying to accomplish.
If you simply take this year’s numbers, add a little growth to revenue and increase expenses, you may end up with a perfectly reasonable-looking budget—but not necessarily one that moves your business or your life forward.
Your financial goals give your budget direction.
They help you make intentional decisions about how much revenue you need, how much you can spend on payroll and other expenses, where you can invest, and what financial results the business should ultimately produce.
For most pet care business owners, I recommend starting with three key financial goals: revenue growth, profit percentage and owner pay.
Goal #1: Revenue Growth
How much do you want your business to grow in 2027?
It can be tempting to simply choose a percentage—maybe 5%, 10% or 20%—and call that your revenue goal. A better approach is to consider where that growth will actually come from.
Could you serve more pets with your existing capacity? Is there an opportunity to improve occupancy during slower periods? Are you planning a price increase? Could your service mix change? Are you adding a new service or expanding capacity?
Your revenue growth goal should be ambitious enough to move the business forward, but realistic enough that you can identify a path for achieving it.
Instead of saying, “I want to grow revenue by 10%,” take the next step:
What will need to happen in the business to create that 10% growth?
We’ll dig deeper into planning next year’s revenue in an upcoming article.
Goal #2: Profit Percentage
Revenue growth is exciting, but more revenue doesn’t automatically create a healthier business.
That’s why your second goal should focus on how much of your revenue you want to keep as profit.
If revenue increases by $100,000 but payroll and other expenses increase by the same amount, you’ve created a larger business—but not necessarily a more profitable one.
Setting a target profit percentage before you build your budget gives you a financial guardrail.
As you begin planning payroll and operating expenses, you can ask:
Does this spending plan still allow us to achieve our profit goal?
If it doesn’t, you have the opportunity to make different decisions before the year even begins.
Goal #3: Owner Pay
This is the goal business owners too often leave until last.
What do you want your business to provide for you in 2027?
Your owner pay goal may include regular salary or draws, distributions, retirement contributions or other financial benefits you receive from the business.
Whatever structure you use, put a number around what you want the business to provide.
Your business needs to support your team, care for your clients and pets, pay its bills and fund future growth. But it should also provide a financial return to the person taking the risk and carrying the responsibility of ownership.
Owner pay shouldn’t simply be whatever happens to be left over.
Make it part of the plan.
Your Three Goals Need to Work Together
These goals aren’t independent of one another.
If you want to substantially increase owner pay, where will that money come from? Do you need additional revenue, improved profitability—or both?
If you want to grow revenue aggressively, will you need to add staff or make other investments that temporarily affect profit?
If your priority is improving profit percentage, do you need to look at pricing, payroll efficiency or expenses before pursuing significant growth?
This is where goal setting becomes financial leadership.
You’re not simply picking three numbers. You’re deciding what you want the business to accomplish and how those priorities need to work together.
Make Your Goals Specific
Once you’ve identified the direction you want to go, put actual numbers around each goal.
For example:
- Increase annual revenue from $1.2 million to $1.3 million.
- Improve profit from 8% to 12%.
- Increase annual owner pay from $80,000 to $100,000.
Then ask yourself whether those three numbers make sense together.
What would need to change to achieve them? What opportunities could help you get there? What challenges might stand in the way?
You don’t need every answer yet.
That’s what the planning and budgeting process is designed to help you figure out.
Give Your 2027 Budget a Destination
Before opening your budgeting spreadsheet, take some time to answer three questions:
What is my 2027 revenue goal?
What is my 2027 profit percentage goal?
What is my 2027 owner pay goal?
Write them down.
They may change as you work through your annual planning and budget—and that’s okay. The important thing is that you’re starting the budgeting process with a destination rather than simply filling in numbers.
Next, we’ll take the first of those goals and turn it into a realistic revenue plan for 2027.
Want More Support Building Your Financial Goals?
Setting goals is only the beginning. Knowing how to connect those goals to pricing, payroll, budgeting, forecasting, cash flow and your day-to-day financial decisions is what turns them into results.
The Financial Leadership Masterclass was created specifically for pet care business owners who want greater confidence leading the financial side of their business.
You’ll learn how to set meaningful financial goals, build a budget that supports them, monitor the numbers that matter and create a practical financial leadership routine to keep your business moving forward.
Ready to lead your numbers instead of simply reviewing them? Learn more about the Financial Leadership Masterclass.