Are you a FBSOP? You know… a Fly by the seat of your pants type of entrepreneur?
Let me be transparent here. When I worked in retail, I used to be an “admin clerk”, and my actual JOB was to stay on top of the financials for my store location; I did P&L’s (profit and loss) I did budgets, I did forcasting, I paid invoices and did expense reports… I even did accruals (and still have nightmares of those bloody things! 😮).
When I became an entrepreneur I stopped all that.
Balance sheet smallance sheet sister!
Yeah I was winging it big time! I honestly was happy to not have to report to anyone or be accountable to anyone, just me!
That is…until it hit me in the face that winging it was NOT going to get me out of debt, it was NOT going to get me out of my hum drum apartment with the incessant noise, the inconsiderate neighbours and get us away from the construction of a subway that was just MONTHS away from being 40 feet from our windows.
Winging it was NOT going to put that cushion in the bank we needed to take the vacations we longed for, get the new couch we desperately needed or the new bed my back was begging for.
Winging it did none of those things. The only thing winging it did was make me feel nervous at the end of the month. And stressed.
I had to realize that it wasn’t just me this business was supporting, that I had other people counting on me and I had to smarten up. I swear to you, that for about 15 months, I was complacent, no f**ks were given and I was RESISTING being a grown up.
If you wanted to find me…. I was in the sandbox playing and hiding my head in the sand until I was good and ready to do any adulting… Embarrassing but at the same time, it was an adjustment to being an entrepreneur.
Now I have a customized balance sheet where I forecast each month’s revenue, I have a budget that accounts for all the monthly expenses in the business, and we plan out what we need to make, what we wish to make and how we are going to get there.
THIS IS WHAT YOU NEED TO BE DOING, nooooowwww, not in the spring, not when it dawns on you that you need a new laptop and you don’t know how you’re going to afford it, not in 12 months after failing to hit what you hoped to make in 2017… The time is now.
And it’s not going to hurt one bit to do it. It’s just going to take a bit of effort.
Now, I’m not an accountant, and I’m not even good at math to be honest, but I don’t have to be because I have Excel!
Also I’m sure you can find some nifty templates online for budgeting – I based mine off this style you can see below. Or you accounting software might have this build in – I think Quickbooks has this feature.
Wait, don’t get freaked out… it’s going to be ok… I promise. Take your finger away from the mouse button, and stick around, this is easier than you think.
Ok Simple steps. Breathe!
- HOW MUCH DO YOU NEED TO MAKE IN 2017? What will cover rent/mortgage, car payments, food, kids activities etc., and debt repayment (if you have a spouse who’s contributing, how much do you need to contribute to cover expenses off?) Once you have that number write it down. Let’s just say it’s $60,000 USD. That means you need to make $5,000 in revenue each month in your business to hit your goals. How are we going to get to 5k a month? I will show you in a bit…
- WHAT DOES IT COST TO RUN THE BUSINESS? Real numbers here my friend, what does it cost each year to run your business… how much is your email marketing software? Your website expenses (hosting and URL renewal)? How much does it cost to use Leadpages, or Clickfunnels or other software you use? So take that total number (let’s use $10k USD for our example). So you need to make an additional $10k to have the revenue to cover off your personal obligations.
- HOW MUCH MONEY DO YOU WANT IN YOUR BUSINESS BANK ACCOUNT? You should try to have a few months of income in your bank account, just in case crap happens and you need to take time off. Like I know I might need to get some dental work in 2017, and I might need to take some time off to recover… so I need to plan for that. We know that we have some expenses like software upgrades we want, a new laptop is going to be a must in early 2017… I need a new office chair… etc. Make sure you BUDGET FOR A BUFFER. Let’s just say 2 months salary – which in this example is $10k.
What do we come up with?
You need $60k to pay personal expenses ($5k a month)
You need $10k to run the business
You want $10k in working capital to serve the business
So then you can see we need to Forecast and budget for making $80k in 2017.
Ok let’s look at how you do that… if your eyes are glazing over, sorry but there’s only so much “sexy” you can add to budgeting. At some point you just need to accept and get on with it.
Look at what you currently offer and what you want to offer in 2017.
Online coach (any type) with 2 group coaching programs running per year (6 months each), private coaching (12 months) and an ecourse that can be bought and run at anytime during the year.
Let’s break it down by pricing first then we can get into how many you need to sell to hit your $80k goal.
- Group coaching 6 month program is $300 a month per person = $1800 total
- One to one coaching 12 months program $500 a month per person = $6,000 total
- Ecourse is $250 per person and can be bought and started at any time
To hit your goal of $80k for 2017 you will need:
7x one on one coaching clients @$500 per month for 12 months = $42,000
10 group coaching clients in each 6 month group @$300/m for 6 months = $36,000
8 Ecourses @$250 per person = $2,000
Grand Total = $80k in income
And if you have extra bonus stuff like affiliate income and other products or services such as Black Friday sales… you could exceed your goals of $80k 😍.
So now you have your numbers, now how do you make that money? Well the easy and simple answer is you need a list. And if you want to hit that goal in 2017, you gotta plan out your list building.
Once you know your numbers you need to start planning the marketing to make it happen. How much list building do you need to do, will it be webinars, summits, etc… will you do Facebook ads? Start answering those questions but the one thing you will need to plan is your list building for sure.
Our seasoned list build clients know they must finish their larger list builds in the spring and the fall as well as their consistent list building projects like lead magnets throughout the year.
What do you do now?
- Start planning your list building for 2017 to support your income goals. Look at ways like summits, webinars as well as being a guest on other people’s podcasts. We’ve got some great swipe files for you for list building if you’re doing a summit or webinar with another guest. Click here to check them out.
- Talk to someone about how to make it all happen. If you’re struggling with how you’re going to make it all work, TALK TO US. Seriously, we are happy to talk with you for 30 minutes, free, to help devise a plan.
- Start connecting with other experts in your niche who you could join venture with for list building and brand recognition for 2017. Having a few partners that you collaborate with for common interests could help move you along with your list building faster than if you try it alone
- Create and promote your lead magnets on all your social media channels, promote them at least 1x a week. Also use FB groups you can promote in to share your lead magnets and get the word out. Be consistent!
- Audit your online presence. Check your FB business page, do you have all your links on there? Is it connected to your personal profile? Is your website working, links working? Do you need to update anything? Cover photo? etc…. make sure everything is ready for you to promote and grow.
I PROMISE you that if you take the time to plan out your upcoming year, you’re going to reap the rewards of it. You will actually know your goals, you can have a plan to hit them and exceed them and you will have what it takes to scale up your business for the future!
P.S. We are heavily using funnels to drive our content/lead magnets/services in 2017, it’s worth checking out! Go to our Resources page and scroll down to get a FREE 14 day trial!