Do you feel like you’re constantly spinning in circles, trying to get traction for your business?
Do you feel like when it comes to moving your business forward, there are too many different actions to choose from? Where you’re never quite sure what the right choices are to get real momentum and results?
Does it ever feel like you’re fighting an uphill battle against “shiny object syndrome? Where the latest course, tool, or marketing strategy eats up all your time for almost zero results? Leaving you spread so thin you can’t even follow through on the information?
Do you wish you could wake up in the morning and instantly know, with certainty, what to do next? No guesswork, just clear, purposeful actions to move your business towards the future you want?
If any of the above feels like a page out of your life experience, you’re not alone.
I’ve seen these situations play out time and again (almost predictably so) during the years I’ve consulted with entrepreneurs, small business owners, and product creators.
Most of us get ahead of ourselves, skipping ahead in the process, ending up one step further than we should be. It’s like getting into a monster truck before you’ve learned how to drive.
We’re nose deep into all of the advanced tools and tactics without having the basic strategies nailed down.
Sadly, this is a foolproof recipe for repeated failure.
Imagine this for a second; a construction crew shows up to a building site with a truck full of tools, but no blueprint for what they’re building.
Not only is it a waste of time, it’s incredibly expensive. We instantly know that’s NOT going to play out well!
With that in mind, what I ask next may be hard to do… I want you to put the toolbox down for a few minutes.
I ask because I want to help you design your blueprint instead. I don’t want to just throw more “tools” at you.
If you’re ready to find out how to let’s dive in.
First off, it’s actually simpler than it seems.
To get clarity in your business, there are two essential pieces:
To see this in action, and so you can get a clear idea of how this works; I want to share with the story of “John, the fitness trainer.”
John is a fitness trainer who has a part-time training job and a couple of clients that make him $30-$40K a year.
John doesn’t really have tiers or packages for his services. He sort of just charges whatever he thinks he can get for his time from the clients he has.
John spends a lot of time tinkering and talking with others about YouTube videos, social media marketing, Facebook ads, and other online marketing tactics. But… he never really follows through with any of these tools or tactics deeply enough. It never gets to where he can create clear, measurable results for his business.
John knows that this needs to stop. He knows that he needs to put some structure on his services and that he needs to better leverage his “working on his business” time. He’s also aware that he needs to find a way to attract new potential clients in a more strategic manner.
John needs to ask himself the following questions:
By clearly understanding what your income goal is and how many hours you’re willing to work to earn that, you’re positioning yourself to act strategically.
You can then figure out how you’ll divide up those hours into packages, and in doing so, will find out how many clients you can support at one time. This allows you to understand how much you need to charge each client to meet your goal!
John wants to earn $2,500 per week.
His current fixed business expenses are about $500 per week, most of that being taxes, software and advertising costs.
That means that in order to take home $2,500 in pay per week, John needs to generate $3,000 in revenue per week.
He spends about 10 hours per week working on his business, and he wants to work 40 hours per week total. This number gives him 30 hours per week to put towards providing 1-on-1 services.
He’s decided that he wants to offer an online coaching program to help entrepreneurs adopt better lifestyle and fitness habits. John wants to help them achieve their goals of having more energy, feeling healthier, and becoming more fit.
After crunching the numbers, John has determined that each week, he’ll spend about one hour on the phone w/ clients, one hour via email communication, and one hour doing research and creating programs, totaling three hours per client, per week, to deliver this service.
Remember that John found out he has 30 hours per week to put into coaching. At three hours per client, that means 10 clients per week brings John to full capacity for his desired maximum working hours.
We now know that John can serve a maximum of 10 clients per week.
So how can John generate the $3,000 in revenue required to profit $2,500 per week after expenses?
If you’ve been following along, that $3,000 per week needs to be generated through what he charges those 10 clients.
And since they’re all getting the same package, all we need to do is divide:
DESIRED REVENUE PER WEEK / # OF CLIENTS PER WEEK
John now understands that he needs to find 10 clients and charge $300 per week to each of them for his fitness coaching packages. Doing so will help him meet his lifestyle and income goals through his business.
It goes without saying that John needs to validate his package offering on the market. It’ll take some testing and data to determine if he has product-market fit (a.k.a. whether his target audience will accept what he’s providing). But at the very least, John now has a framework for his business model, something that he can base his decisions off of going forward. Even more specifically, how he will approach his marketing.
Let’s go back to those two questions again, and see how John compares:
Having a specific understanding of what you are trying to build and what result you are trying to achieve:
John now knows that he is trying to build an online coaching program with 10, 1-on-1 clients, that allows him to earn a profit of $2,500 per week while working 40 hours per week.
Having a simple means to evaluate if your actions are in alignment with that goal:
John now knows that selling packages that are not aligned with this format are not aligned with his ultimate goal.
John now knows that stepping outside of his zone of expertise is not aligned with this ultimate goal.
John now knows that his marketing needs to focus on helping him maintain a constant roster of 10 clients for his $300 per week package to be in alignment with his goal. It’s to his advantage to pursue strategies that are consistent with that.
John can now easily evaluate which actions are in alignment with his ultimate goal.
Getting to 10 clients…
First off, assuming John is quitting his training job, and retaining his two clients on his new package format, he’s two-tenths of the way to his client goal.
That means he needs eight more clients at $300 per month.
Let’s say John decides to use an online marketing funnel to attract those clients.
He creates a PDF fitness guide that he distributes using Facebook advertising. Once someone downloads the guide, they are redirected to a video about his services, with a call-to-action to book a call with him.
As a basic example (there’s a little more to this), we’re going to cover how John dials into the correct numbers for his funnel. Doing so will let him determine how much he needs to spend on ads to get those last eight clients.
COST PER CALL BOOKED (Total Ad Spend / Calls Booked) / % OF SALES CALLS THAT CONVERT INTO SALES = COST PER ACQUISITION (How much it costs to acquire a customer)
For example, if John has to spend $100 on advertising to get one call booked, and he closes 25% of those calls. Then we know he needs to book four phone calls to gain one new client, which will cost him $400 to do.
So if John wants to gain eight new clients, he’ll need to spend $3200 ($400 x 8).
Let’s just say for illustrative purposes, that John’s clients have typically stayed on with him for three months time (we call this Average Customer Retention Rate).
If that’s the case, then John will need to find one new client every three months, in order to maintain his client base at 10 consistently.
So taking the numbers we calculated above, if it costs John $400 to gain one new client, and he needs to gain one every three months, then he’ll spend $133.33 per month on advertising. This fits into the original expense budget of $500 per week that he set aside in his business model.
It’s important to factor this in because if the costs were not consistent, John would have to make adjustments in order to reach his $2,500 per week profit goal.
This was quite a bit to cover in one piece of content. Hopefully, these perspectives have helped shape your thoughts on structuring your offers and business. I also hope the six questions along with the basic math exercises provided some clarity on how you can create momentum in your business.
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