Revenue, Income and Sales – Business Growth
I don’t have an MBA or equal qualification in business however I am a fully qualified business growth coach and have been in business for over 10 years and study all areas of business every day. I am an entrepreneur and a writer of 24 books on success and have been helping clients globally for over a decade to turn passions into profits. Now, I don’t know what stage you are at in your own business or – if you are just starting out, but some of these tips may help you to gather more information and awareness when it comes to creating more sales in your business right away. I am keeping this pretty simple so that it is easy to understand and implement this overview of selling and the principles involved.
Of course, as you may already know, when starting out you will want to keep things fairly small and easy to understand so that – as you scale up you are already in control of the structure and fully understand it.
What I am going to do is share my last years goals and numbers with my coaching costs and show you how I knew what I was aiming for – and also what this meant. This is so you can see ‘how’ you might copy or use simple methods to calculate your growth. So, to start with let’s look at some of my costs and I am making this very simple.
Grab a pen and paper so you can jot down your ideas if that helps!
My premium coaching is £1500. This can be paid up-front or in segments depending on the client. This includes 12 sessions and a £297 self study course, known as my ‘love, passion and purpose’ package. This self study acts as a way for anyone who wishes to change their life, career or business to use some powerful tools to help them get there. I also sell the self study on it’s owns for £297. Alongside these costs I have an option for 6 sessions at £540. So, this gives another option to choose instead. This is at £90 per session.
Now – I also have other ways to create streams of income some from affiliate marketing and ebooks which I will cover in a moment.
Middle of last year my goal last year was $10k+ per month and so – here is what I aimed for….
PER MONTH SELL 4 X £1500 Premium package = £6000
PER MONTH SELL 4 X £540 sessions package = £2160
This equates to £8160 which is in fact $10, 507 approx.
Plus ebook sales and affiliate sales of £500+ per month
= $11,149 approx
So this income is just from coaching, affiliate commissions and ebooks but it varies a great deal. The key though is to have more streams without burning out and this is where managing what you do daily is absolutely vital to managing this. For example, speaking, JV’s, ecommerce, writing for others, consulting etc. You can choose what you do.
So, as you can see, I clearly knew my goal and aimed for that.
I knew that I had to make X amount of sales so, I implemented a variety of marketing and promotion campaigns in order to reach that amount.
There are three important factors here 1) I KNOW MY INCOME GOAL ALWAYS 2) I KNOW WHAT I NEED TO DO IN ORDER TO REACH IT 3) I KNOW MY COSTS
This is simplicity and clarity and – as simple as that sounds it’s still not very clear to many small business owners and start ups.
So, if you DON’T KNOW YOUR GOALS EXACTLY you cannot increase your revenue and growth aiming for anything or measuring your results.
No matter what you sell you need to know your goals, why you want them and what it takes to reach them.
Factoring in expenses with my monthly costs/expenses they were around £1100+. These costs were bare minimum for what I needed and they used to be way higher but I looked at how to decrease spend in order to see more net profits and scale up. Once I could see how to decrease my spend I was also able to increase income and look at increasing client numbers. So it pays to look at your expenses and where this is being used.
Revenue, Income and Sales – Business Growth and Metrics
What’s so simple about this is that – I started to know ‘what’ each client was costing me and was worth to me as well as ‘what’ my margins were. From there I could see where I could decrease spend, increase gross income and invest deeper into the channels that worked thus acquiring more high end premium clients.
IMPORTANT: When there are months that drop below this ‘desired income goal’ I can see with my marketing efforts and channels which areas are most and least effective. This is on-going and allows me to increase a particular area which is creating greater returns. What really helped me was – studying Adora Cheung’s videos (a speaker at Stanford University) and from there I could really understand the customer acquisition model whereby I knew what it was costing me to obtain each buyer. And by knowing this metric and the CLV (customer Lifetime Value) which means the total value of a single customer for the life of that customer I could see where to make the necessary adjustments. Learn more about CLV here https://en.wikipedia.org/wiki/Customer_lifetime_value
Other metrics that really help me – Knowing CAC = customer acquisition cost which is explained in detail here > https://en.wikipedia.org/wiki/Customer_acquisition_cost
Now, by understanding how each expense or cost affects my income and where my efforts are most effective I see on my graph where my business is growing versus where there needs to be more attention.
Revenue, Income and Sales – Business Growth marketing
So, by you looking at your marketing and advertising efforts (or your team doing so) and looking at your budget you can then see what’s working and what isn’t.
Personally I use a variety of marketing channels such as Youtube, my blog, Social media etc. With Facebook and in particular FB ads or Facebooks ads these have been the higher cost area – yet the highest return channel meaning that, whilst costs in this channel to acquire the right clients was fairly expensive I managed to bag some premium clients AS I KNEW WHO TO AIM FOR. So of course this created greater net profits. So it is important to know WHO you are aiming for and by knowing this and your metrics and your efforts you are lowering your costs and creating a better return.
I used to spend alot of money and see nothing. Indeed I spent many thousands of dollars in FB ads but, as I learned and mastered this area I was happy to break even just after I first started. And that would be considered not bad at all because, it would mean that I had lost nothing. With some little adjustments it was easier to improve efforts and get into profit situations. The point is, try some things, but really go deep and narrow and drill down into your testing. No matter which channel you use you need to know what’s working and what isn’t.
Revenue, Income and Sales – Business Growth
So, what products or services are you selling or thinking of selling and why?
And what do you know about this type of structure already?
First off – it’s key to know your products and services inside out so you know the value of this and how it meets the exacting requirements of your end user. By knowing this you have an ability to know where to sell and who to sell to and by knowing your target customers taking into account many demographics and personal details through market research you will be able to target more of the right people thus hopefully keeping your spend lower.
My suggestion to you next would be….
1- Know your customer first inside out and do whatever it takes to really know their fears and passions
2 – Ask why they will buy from you. What do you do differently from others?
3 – Does your product or service meet with their exacting needs? If not what do you need to change?
4- What unique features and benefits has your products or service have that others don’t have and will that work in your favour?
5 – How can you grab the clients or customers from already established companies and businesses?
6 – What is your income goal month to month and how will you measure this?
7 – What are your expenses and this includes every area of spend?
8 – How will you master CLV and CAC and other metrics or will you get help?
9 – How will you measure this and with what?
10 – What is your role in this and do you need a marketing and sales expert role to help you?
There are so many things to learn but all are key areas for growth. The trouble is that, too many people try it all and do it all without measuring and this (in my experience) means you are doomed to fail. Why?
Simply because, we cannot do it all effectively and we have to measure what we do! We have to stick to what we are great at, follow our own passions and skills and strengths and work from there. And by knowing ‘where’ you are most effective you will see returns way faster.
If you feel you need some help with your costs, expenses, income and revenue then get help. Outsource, get a team, hire an expert or coach and let them handle this whilst you grow your brand exposure. It’s vital to know your role and what you can best do day to day and not to try and be a jack of all trades. I know this from my experience and from that of my clients from all over the world. It is common and it is a killer of lives and businesses.
I would love to know more about you and your Revenue, Income and Sales – Business Growth and ideas or start up so, get in touch if you feel you are at that point where you need some clarity and momentum.
Simply connect with me @ www.GregDeTisi.com and shoot me a message. I will look forward to understanding your venture in greater detail.
In the meantime please leave comments below and ask as many questions as you like I am more than happy to connect!
P.s you may also enjoy this page I wrote about turning passions into profits? http://thesmallbusinessgrowthblog.com/passions-to-profits
BONUS POST SECTION – Revenue, Income and Sales – Business Growth
Now, talking about income and revenue one thing that really matters to me is using every part of your business to earn an income.
So, where may you be leaving money on the table so to speak? being a coach it could be easy to think that I earn from coaching but I did touch on ebook sales and affiliate sales. Expanding on that, I ensure that everything i share or promote is in perfect alignment with my coaching and with success in some way. So, I want you to think about your business or the business you are INTENDING to get into. Where can you earn? What are you currently earning? Are you maximising your efforts when earning? Fro example – I have a friend who is a tattooist. He is very good and charges what he is worth so, makes a living as he has built a great reputation for himself. So this brings in repeat custom. Awesome, BUT – when I went to his shop I asked him if he sells his Art work as he is an accomplished artist. Also, could he have t-shirts made with his brand on it and mugs, lighters or anything else that may be relevant. Over a course of 3 months he had added an extra £2-3k to his bottom line.
JUST BY leveraging his already established brand and name. He found that there were various areas he hadn’t considered. So, grab a pen and paper and start jotting down some ideas as to where you might increase earnings and income. See you next time!