Breaking Down the Numbers
Do you know the best way to increase your chances of hitting your current revenue goals for your business?
1. Create a strategy and then commit to the actions that the strategy requires.
2. In order to create the best strategy possible, get clear on your numbers.
Are you an entrepreneur that has made it a high priority to grow your business but are not sure about where you are at or how you are going to get to the next level?
Let’s break down the numbers into an equation:
· X number of customers/clients = X number of products sold/services booked
· X number of products sold/services booked = X number of income
If you currently make $1,000 in your business but your goal is to have consistent 5K months, what does the equation look like for your current $1,000?
· Do you work with four clients each month at $250 each?
· Sell two products a month at $500?
· 4 Social Media Clients = 4 services @ $250
· 4 services @ $250 = $1,000 revenue
Looking at your current financial breakdown, helps you to evaluate what needs to
be done to increase your status. In order to hit a revenue goal of 5k, we need our income to match this equation:
· 20 Social Media Clients = 20 services @ $250
· 20 services @ $250 = $5,000 revenue
Of course, you will fill in this example with your prices for your individual products
or services and the end goal you are working to meet. I would encourage you to do this with lower ticket products or services as well.
If your most expensive package or product is $250, but you also have an offer available at $75, break down what it will take to hit the same revenue goal with a different price point option.
On your way to hitting the income goal, you might get a mix of ideal customers/clients buying from you at different price points. Keep in mind, they all add up and matter!
When you know from the beginning that you need twenty social media clients at $250 or five at $5,000, you will be able to keep track of the numbers successfully as they book your services or buy your products, regardless of the price point.
Every dollar plays a part in the big picture. Once you have broken down how many customers or clients you need at a certain price point to hit your income goal, you will be able to create the necessary action steps to finding those ideal customers or clients that will want to give you their money in exchange for the value they see in you.
By - Kim Cardona
Many businesses have closed their doors, laid-off employees, and may struggle when the time comes to reopen their doors. Those businesses that remained open are also facing their own set of difficulties. The reality is that there is never a certainty, but only the way we perceive and react to our circumstances. This post provides three concrete things your business can do to rethink your business practices to continue to earn an income, provide value and stay connected with your customers and clients during a global crisis,