Save yourself hundreds of hours of sweat & tears. And a ton of money.
Do the homework upfront. Check if the business model you’re chasing is FINANCIALLY VIABLE or not.
Every business has stages. A rough outline
- When your thinking, expoloring, coming up with ideas
- When you’re testing the waters, honing your skills, building a base.
- When you really step into your element and grow your biz. It generates a real revenue, enough to support your lifestyle.
- When it gains momentum and grows exponentially.
When we’re in #1 or #2, many women just hope #3 will fall in place. They think that once they’ve done the work, built their audience, sharpened their skills, got that certificate, the revenues/income will just come.
But before you spend a full year on #1 and #2 .. take a minute to work out whether the business model you’re planning can actually support the kind of revenues you want in #3.
This week it’s been a recurring theme on 5 diff client calls for me. So I thought I’d share it with you folks as well.
Do the homework upfront. Check if the model you’re chasing is FINANCIALLY VIABLE.
For example, if you’re planning a 1:1 healing/coaching practice and plan to some day charge $100/per hour (once you’ve built up the skills/audience), but you want a $200,000 lifestyle.. well.. you’re gonna have to sell 2000 hours worth of healing/coaching. That is a good 2000/52 ie 38 hours of healing/coaching hours EACH WEEK. That’s not counting the hours it takes to build and nurture your tribe, or find real paying clients. You need to think beyond the 1:1 coaching model. Or seriously up your hourly rate.
Another example say baking. If your profit is say $20 per cake after expenses and taxes, and you want to be earning $100,000 this year.. it means you need to sell 5000 cakes, that’s roughly 100 cakes EACH WEEK. Can you really bake and sell that many? It means you’ll need to up your profit margin, dramatically increase your volumes; or find other ways to bring in the revenues.
I know many of you may hate the math. But do it up front, before you start. Don’t wait till you’re a year or two into your business, and have used up all your savings.
Doing this kind of math up front, just when you’re starting will save you some serious heartache – and give you enough time to tweak your business model and come up with alternative revenue streams instead of just putting all eggs in one basket.. and then hoping they hatch.
And yes.. there are always exceptions! To everything. This guys makes $10k a month shipping potato messages!
Want Some Help Figuring Out Whether Your Business Idea Will Be Profitable?
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