Oooo…now this is where it really gets interesting. ; )
You’ve gotten clear on what kind of lifestyle you want to create and you’ve gotten clear on your vision for your business. Now it’s time for a reality check…and more than likely, a few course-corrections.
We have a tendency to get caught up in the day to day grind, in the never-ending list of things to do, and we lose sight of why we’re doing it all and what the point of it all is.
Are you on the right track? Is your current biz model going to get you where you’ve said you want to go? Are the tasks, projects, products and services you’re currently working on/offering moving you closer to your vision or are they keeping you stuck?
How to Know If You’re on Track
We’re constantly in the act of creating our lives. Your thoughts, actions, and choices today, create your future. That being the case…you can create your future on auto-pilot without much, if any, thought or you can create it consciously.
Creating your future on auto-pilot is a game of chance…creating it consciously will significantly increase the odds that you’ll get where you’ve said you want to go.
Run whatever you’re up to through the filter of the life/biz you want to create.
Will it move me closer to that vision?
How might I reach the result I’m striving for faster, better or more easily?
Is what I’m up to the end result or a stepping stone to the end result?
Am I making false assumptions about how it “has” to or “should” be done?
Is there a way to leap frog to the next level?
Let’s look at a couple of examples that will better demonstrate this process:
Your Vision: You’re a coach and you want to create a six-figure income for yourself that allows you the ability to work from anywhere, to set your own hours, to travel the world, all while working part-time.
The Current Reality: You’re working with clients one-on-one, charging $150 an hour for your sessions. You have a website, but your list is tiny and you’re relying primarily on word of mouth.
Are you on track?
Let’s take a look:
To hit that six-figure target you’d need to be working with 14 clients each week for 50 weeks….for a total of 105,000.
You’d be working part-time, but you’d be tied to the phone each and every week, and you’d be working your butt off for that 105,000 in revenue. Not to mention, you’d never keep that many clients on the calendar consistently without doing some serious marketing….which would add quite a few more hours to your schedule. Hmm…now you’re working more than part-time and you’ve only got two weeks out of the year for that travel you want to do. And let’s not forget the important distinction between revenue and income. If you want to create a six-figure income you need to create MORE than six-figure revenue to allow for taxes, operating expenses, etc.
That scenario isn’t looking so hot, is it? But now that you have a vision, you can look at how to shift what you’re doing so that you are on track.
To continue with the same example…
You begin marketing yourself in earnest to build a large, highly targeted and responsive list. You raise your one-on-one rates to $400 an hour and you develop a three-month group coaching program for 50+ people at a rate of $1000 per person. You offer the live course three times a year and you leverage the content by offering it as a home-study too.
Now you’re working LESS hours and earning MUCH more. You’re earning $150,000 in revenue just on the live program. A few one-on-one clients and a steady trickle of home-study sales and you’re bringing in a revenue double what it was before, while working half as many hours AND you’ve got three months a year between programs to travel. Now you’re on track!
Your Vision: You’re a jewelry designer and you want to create a six-figure income for yourself for the next decade, and then you want to be able to sell the biz for 7 figures that will allow you to retire in comfort.
The Current Reality: You’re working solo creating beautiful, inexpensive pieces, that are quick to create, with an average price of $10, and an average profit of $7.
To earn a six-figure revenue (income would be significantly less) you’d need to make AND sell 14,286 pieces per year. That’s a whopping 358 per week. If you’re working 40 hrs. a week for 50 weeks a year you’d have to make AND sell 9 pieces per hour or one every six minutes. Yikes! That is NOT sounding so hot, is it? In fact, it sounds exhausting, if not impossible, and as long as you’re working solo the biz is inextricably tied to YOU with no possibility of being able to sell it and retire.
So what to do?
You begin creating unique, higher-end pieces. While they take longer to create, the price and profit point is significantly higher – An average price of $500, and an average profit of $450. Now you need make and sell only 222 per year to earn the same 100,000 revenue. You can create twice that many so you’ve now doubled your revenue and can afford to hire a talented young designer with whom to share the workload, while continuing to increase the revenue you’re earning, and while training the young designer to take over the biz when you’re ready to retire.
Now that’s what we’re talking about! Now you’re on track and moving steadily closer to your vision.
What to Do If You’re Not on Track
As I’ve said before…it’s all too easy to create a wildly successful biz that you HATE if you aren’t keeping your vision in mind and tweaking your strategy as you go so that you’re moving steadily closer to it, the chances that you’ll happen to wind up where you wanted to are pretty freakin’ slim.
Having a vision with which to create a filter allows you to consciously make the choices you need to make to move you closer to your vision rather than waiting until you’re burned out and frustrated, or ready to retire only to realize it’s an impossibility.
If you’ve just discovered you’re on track…fantastic!
If you’ve just discovered you’re not on track…don’t despair! It’s a GOOD thing that you’ve discovered that now so that you can get on track. What course-corrections do you need to make?
Don’t stress it…simply create a filter question for yourself that will help you to get on track.
Having a filter question will make it the essence of simplicity to choose which tasks, projects, and opportunities to pursue. It’ll keep you focused, help you to fully leverage your time and energy, and it’ll ensure you don’t lose sight of why you went into biz for yourself in the first place.
I’d love to hear what you think and what your experience is working through this process. If you’ve done this before…how has having a filter question impacted the way you’re building your biz? Come chat with me in the comments…