Welcome to week 2 of this month’s series, “Profit Plan” where I am taking you through the step by step process of how to generate profitable revenue in your business.
Last week we talked about how to create your product or offer that will make you profitable.
This week we are going to talk about setting your profit goals. This is one of the steps that is often overlooked and is one of the most important when it comes to generating a profit in your business.
There are a few types of profit goals that we want to set here, so let’s dive into what these look like and how to set them.
Dream Yearly Profit Goal
The very first thing we are going to do is DREAM BIG! I am a huge believer in the fact that we should dream big and that nothing is impossible! I always encourage and coach my clients through the process of embracing their dreams, releasing their fears and having the courage to say how big they want to grow. I have heard everything from “I want to make $100k” to “I want to make a million dollars”. The incredible thing is that YOU get to decide how much money you want to make. Take a moment and think about what you dream profit goal is, in other words, if there were not limitations on how much money you could make (which there aren’t) how much money would you want to make?
Write down your dream profit goal.
Dream Profit Goal:
Current Yearly Profit Goal
Now that you know what your dream profit goal is the next thing we want to do is get crystal clear on what your current profit goal is. How much money do you want to make in your business right now? How much money do you need to make in order to live the life you want to live and have the life you want to have right now? Is it $25k? $50k? $100k? Figure out what the profit goal is in your business. Doing this will help you get closer to your dream profit goal because let’s say your dream profit goal is $100k in order to make that you first need to make $30k, 50k, 80k etc.
Write down your current profit goal.
Dream Profit Goal:
Current Monthly Profit Goal
As you can see we are breaking this down and continuing to break it down. Now I want you to get crystal clear on what your current monthly profit goal is. So take the current yearly profit goal you wrote down and divide it by 12.
Current yearly profit goal/12=current monthly profit goal
Current monthly profit goal:
Current Monthly Sales Goal
The final piece is defining what your sales goal is. What you want to do here is take your current monthly profit goal, look at the product/offer you created last week and do some simple math to determine your sales goal.
Current monthly profit goal/product/offer= Sales Goal
Here is an example:
$5,000 current monthly profit goal/ $1,000 offer= 5 Sales
Now I know that I need to make 5 sales in order to hit my current monthly profit goal. Fill-in your numbers to identify what your current monthly sales goal is.
Now you know exactly how many sales you need to make in order to generate a profit this month. Next week, we will talk about how to price your offer for profit.