Let me be honest with you – I hate numbers. I know, I’m the CEO of my company, I have to run the numbers, but I hate doing them at least as much as you. The reality, though, is that if you own a business, and come up with excuses, instead of doing your numbers, you’re not going to reach your goals, and you probably won’t create sustainable profit.
I love my clients, each and every one. I believe in their dreams, and I know they can reach them. And, I encourage them to pursue their dreams. Sometimes, though, dreams don’t align with numbers. It’s heart-breaking when a client is passionately driven to launch a wonderful idea, program, workshop, etc but there is a problem with the numbers. This happened recently, and the experience was so profound, and I think, relevant, for many entrepreneurs, that I wanted to share the concept and also what we did that led to attainable goals and actions to get there. I’ll be substituting some of the details to protect privacy, but you’ll still get the learning:
Client Objective: Make $20,000 in one month
Client Desire: Launch dream event within one month, requiring at least 70% of their time. Maximum income from event is $5,000 – $10.000
Attainable Plan: Acquire 2 pay-in-full clients or 6 monthly paying clients to create $20k in one month
Many of us have a clear idea of a dream or ideal we want and in our heart and our spirit we are ready NOW. What often gets left out is that to bring ideas to reality takes TIME and that if we don’t look at NUMBERS we remove time from activities that DO make us money, and without those activities, we end up unable to create profit while building the big dream.
So, here’s what we determined:
- It was not possible to make $20k from the dream event, at least not the first go-round. The maximum amount of money that event could bring in as a “big event” was 50% of that goal, but it might be less.
- Doing all the work to launch the dream event immediately made the dream feel overwhelming, instead of exciting. This is important. If you’re not willing to hustle for something, you might not want it as bad as you think OR the timing might be wrong
- Spending time on all the work to launch the event would make it impossible to have enough time to focus on the activities that would bring in that revenue
Let me show you what this looked like numerically:
You want to make $20,000 in one month. It’s possible to make this with 2 private clients, 6 clients that pay monthly, or a combination thereof. You really want to run the dream event, but you’d have to do it within one month, and the maximum return would be less than 50% of your goal. First step – say it out loud so you can see that the numbers don’t add up.
Now, you can see that there are choices to be made. Here is what that could look like:
- Lower the monthly goal to $5k, and launch the dream event now.
- Keep the monthly goal at $20k, split your focus between the program and getting a private client, and likely be exhausted, and the program doesn’t get enough of your time to launch the way you hoped
- Keep the monthly goal at $20k, make the money from private clients, put a new date on the calendar for the event launch, and use the extra time to make that program the best it can be since you’ll now have the income to do it
Once the money gets focus, actions become clearer. In this scenario, if you weren’t willing to lower your revenue target AND you were married to your event, you can easily see how you’d set yourself up for failure
Because we looked at the numbers, my client was able to get clear on what she really wanted, and though the process was tough, the outcome was beautiful. We made a concrete action plan that allows her to meet her immediate revenue goal now. AND, to honor her dream event, we came up with a strategy to create bite-sized, realistic actions to trial the idea in the short term, and a revised date for the event itself. This means she gets to make her numbers, AND stay connected to her dream AND launch that dream with even more success.
Maybe numbers aren’t so bad….