Numbers That Might Make You R.I.C.H
I’m on the heels of two major speaking events and I had the pleasure of speaking at both events. My presentations were all about Money: how to make money decisions, stop avoiding the numbers and attract more of the green stuff into your life (this was all grounded in real strategy, not money magic).
I was surprised by how many people in the room avoided looking at their money numbers at any regular interval. As an ex-money avoider myself, I totally understand how it gets overwhelming at times. I decided to give you my money “cheat sheet” to make it all easier. Here are some key numbers that will make getting to 10K or 100 K in a month SO much easier.
1. Know your 60, 90 or 120 day revenue goal and track the revenue that comes in each day. Write down how much revenue is coming in each day and track how close you are coming towards your goal. That way you become super focused and super clear about what you need to be doing each day. Namely, the tasks that bring you closest to your revenue goal!
2. Get clear about how many initial sessions you are doing each week.Here’s the thing – if you aren’t doing initial sessions or meetings with prospective clients every week, your business isn’t growing. Initial sessions or meetings are a conversation that includes you asking for money at the end of the conversation (or book-ending with another conversation in which you intend to ask for the money). On Friday or Saturday of every week – write down two numbers: how many initial sessions you had and how many people became your clients. If those numbers aren’t high enough – then get thee to a business training program to help with your marketing and sales skills.
3. Know your monthly necessities number. Write down all expenses you incur regularly – rent, electricity, groceries, restaurants, internet, phone etc. This is your monthly necessities number. That means that you must be bringing in at least this much revenue to break even. This can be done once, since for most of you these numbers will stay roughly the same. For those of you that are just starting – you’ll make your monthly necessities number your first goal. For those of you that are more advanced, go back to your necessities number and add in all the extras that you would like to have – massages once a week, perhaps a bigger living space etc. This becomes your monthly ideal number. That is the second number you are working towards. Every year, add to your ideal number. As you grow your life, your business will grow with you.
4. This one is for those of you that are advanced business owners out there and are doing product launches and events. You want to keep an eye on profit as well. Therefore you have to know your expenses per each launch or event (variable costs in business speak). Keep track of all the little expenses that go into your launch: building the pages, getting the writing done, doing the graphic design, extra VA work to organize the project etc. Once you get an estimate of these costs, then determine how many clients you need to break even and then how much profit you want to make. I find that way too many advanced business owners think they are making money when all of it is actually going into running the launch itself. It’s OK to break even on a launch if it is for a good reason – list building, exposure etc. But you want to make a profit on some of your launches – otherwise you won’t have the cash to get that massage you’ll surely need after it’s all done.
Ok, so I hope that those of you that are number phobes out there aren’t running in the opposite direction! But you’ll see that knowing the numbers just gives you more control and freedom in your business. You can also take risks because you know the numbers that you need to support it. And if none of that helps, this surely will – PEACE OF MIND. There is nothing better than knowing your money situation, bad or good. Then make a solid business action plan to move yourself forward. I make these plans with my clients all the time in our VIP Days. Then, just put your head down and stick to the plan and track your money. It will only be a matter of time before your business starts to respond to your attention, focus and clarity.
Please share how you are looking at your numbers for 2016 below.
