Most people want more of me.
They think about me, but don’t often talk about me or want to hang out with me.
In fact, a lot of people avoid talking about me altogether.
Many people are even more comfortable talking about sex than talking about me.
What am I?
…
…
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MONEY!
Did you know…
Small businesses with a revenue plan grow 3x faster than those that don’t.
3x faster.
Money can be a challenging subject to tackle, but I am all about your success and the success of your business so we are digging in and creating a plan.
It is a challenge and an investment of time that we must make if we are committed to the growth and success of our businesses.
Are you with me?
Let’s ease in with some basics:
Revenue, Expenses, and Profit.
REVENUE
Amount received by a business for goods or services sold.
Example: Coaching program costs $395 x 10 people purchased the program, revenue is $3,950. If you were to compare this number to what someone makes via a paycheck from an employer, this would be the equivalent to the salary (amount paid before taxes and other deductions are deducted).
EXPENSES
Money spent or cost incurring in support of generating revenue and running a business.
Example: Monthly expense for bookkeeping or accounting system (e.g., Freshbooks, Xero, Wave Accounting), business education/training (e.g., DailyWhip, B-School, Client Attraction).
PROFIT
Positive gain after costs/expenses are subtracted from the amount earned in the business (revenue).
Example: Revenue – Expenses = Profit
So, now that we have some of the terminology down, let’s create our plan and pump up our growth rate.
Sound good?
ACTION JACKSON
Let’s start with our revenue plan. To get started:
#1) Products + Services :: Make a list of all of the products and services you offer
Service A
Service B
Service C
#2) How much of each when? Identify how many of each product or you service you want to offer in a given time frame.
Service A 2x/month all year
Service B 3x/month all year
Service C 4x/month once a year
#3) Do the Math :: Multiple the number of times you will offer the service (2*12) times the price of the service.
In example of Service A, the calculation would look like this:
2 x 12 (offer 2x/month all year) x $100 (price of product) = $2,400
#4) Organize & Assess Results :: After you’ve done the math map out how much you will make on a monthly and annual basis based on your products or services, prices, and the number of times you will sell each item.
Now you are ready to assess, tweak, implement, and reset as needed.
As you look at your revenue plan, consider:
Is the amount of income you will generate in line with the targets you had in your head?
Are you undervaluing or low-balling your service offerings in your pricing strategy?
Does your revenue model align with your business model and your core values?
Is the amount of revenue you will bring in worth it based on the amount of energy you will have to expend to generate those services?
So, how’d it go? Let me know in the comments!
If you are struggling at all, pop me a message.
I am happy to help you tackle this important piece of your business planning process.
More tomorrow!
Amber
