Learning The Time-Tested Calculations For Achieving Business Income Goals
Financial advisers typically appease the majority; the job market, and those of us desiring to start a business view business finances as risky. Business finances do not have to be considered risky when you understand all of the factors that complete your budget.
When I was first starting my business, I was basing my business income projections off of my previously learned budgeting skills that worked well for my job. I would take the income that I earned from last month, the things that I did, then attempt to correlate my deeds to my outcome, increase my deeds, and expect greater returns. In part this concept could work, but in total, I was missing the mark. As a result of my disappointment, I studied, learned from successful business owners, and have some pointers to share with you.
- Calculate your desired income
Expenses+Leisure Demands=Desired Income
-How much is your water bill, your gas bill, your electric bill, childcare expenses, gas, vehicle maintenance, monthly subscriptions, etc.? Calculate all of your expenses.
-What do you want to do for fun this month? Amusement parks? Date nights? Movies? Vacation? Seminars? Calculate all of you leisure demands.
Add your expenses and your leisure to equal your desired income. Do this as routinely as you sit down to do your budget. Budget up not down. Budget to give yourself freedom, not to constrain. Make more, not limit more, and if you do not know how, ask God for wisdom.
- Know the visibility that is required to attain that result
Desired Income+Good Product+Visibility=Good Business Finances
One major economic principle, Pareto’s law, says that 80% of your sales come from 20% of your clients. Additionally, the Rule of Seven says that a customer needs to see your product or service seven times before making a buying decision.
3.Make firm quotas
When you pair Pareto’s Law with your marketing efforts, you can expect that if you show your product or service to 100 people, an estimated 20 people will buy in. However, if you know that your desired income is $5000+ monthly, then you know that if your product is $1.00, then you would have to show your product to 25,000 people monthly.
Additionally, if you also pair the rule of seven, you should also find ways to ensure that your marketing strategy follows up with interested clients. Just because they needed to build their trust with you or were not in position to buy from you right away does not mean never. Follow up! Set up email auto-responders, text auto-responders, or some other follow-up strategy.
- Shape your marketing strategy to exceed the visibility demand
Social Media, Speaking Engagements, Radio, Television, Blogging, Postal, Billboard advertising, and the list goes on. Be creative with the strategies that you use to gain the required visibility to meet your income demand.
- Be disciplined enough to push to get your result
Wake up, create content, build products consistently, contact prospects, and do what it takes to meet your mark. Success requires initiative!
I have enclosed a video that will help you gain more visibility for your products and services.
Challenge: Calculate your desired income and your desired visibility to gain your outcome. Leave comments for ways that you can gain your visibility.