Most entrepreneurs have the goal of hitting consistent 4-figure months in their business at a minimum. However, I have found that a lot of entrepreneurs struggle to hit it.
This is a process I work through with all of my clients and through that I have found that there are some common misconceptions that keep entrepreneurs from hitting those consistent 4-figure months.
I want to dive into what might be stopping you from hitting that financial goal and how to set yourself up to hit it.
Identify What Your Financial Goal Is
Saying 4-figures, 5-figures and even 6-figures has become fancy verbiage that gets thrown around the online space all the time. What not many people talk about though is profitability, income and also what those numbers really mean for them. I don’t want you to make it your goal to hit 6-figures just because everyone else is talking about it. I want you to really figure out how much money you need and want to make in order to life the lifestyle and have the business that you dream of. When I walk through this process with my clients some of them have come back and told me they actually want to build a million dollar business! How incredible is that?! The only way to know what your financial goal is, is to sit down and actually look at what kind of life and business you want to have and then identify how much that’s going to cost you. Whatever that cost is, that’s what your financial goal should be.
Have a Minimum Goal
Like I mentioned above, doing this exercise has led some of my clients to come back with realizing they want to build a million dollar business. That might be the case for you too, or it might look more like 6-figures. Either way, before you build either one of those businesses you first need to build a consistent 4-figure business. For example, if you want to hit $5k months you have to first learn to hit $1k, then $2k, then $3k and so on and so forth. So while your goal might be to build a 6-figure business, you have to start somewhere. Identify what that minim number is that you need to start with and then you’ll build from there.
Determine Your Bandwidth
One of the things that a lot of entrepreneurs overlook that eventually leads them to burn out is that they don’t decide on their bandwidth. What I mean by that is deciding what the maximum number of clients or sales are that you can handle per month. For example, if you offer 1:1 services, your bandwidth will most likely be a lot smaller vs. someone who sells products. Decide on the minimum amount of clients you would like to work with every month as well as the maximum. For the maximum, don’t push yourself. Ask yourself how many clients you feel like you could work with and still give 100% to.
Price to Hit Your Goal
I want to give you the best advice I can possibly give you here and by that I mean I want to give you the exact same advice I give to my clients.
Make your maximum financial goal match your minimum bandwidth if at all possible.
What I mean by that is this….
If your maximum monthly financial goal is $3,000 and your minimum bandwidth is 5 clients then create an offer that can be valued and priced at $600 per person.
Why? Because then you’ll hit your minimum financial goal with the minimum amount of clients you want to get and then you’ll leave room for growth.
So many entrepreneurs do this the other way around. They try to make their offers as cheap as possible, take on as many clients as they possibly can and then they wonder why they are exhausted without making enough money in their business.
It’s simple math that just doesn’t happen. I often see clients who want to hit $5,000 months by selling $100 services. That means you need 500 clients to hit that goal. Is that actually doable for one person running a business? In most cases not.
Do the math of knowing how many clients you can take on per month and add that by what you are currently charging. Does that equal what you want to be making in your business? If it doesn’t, then it’s time to change it.