As a small business owner, how much do you want to make this year?
$100,000.00? This is a good target for a small, dedicated business who is savvy on how to run a solo business.
Let’s do the math…..$100,000/year = $2,000/week = $400/day…. Doesn’t seem hard, does it?
If you work a 40-hour week and bill $100/hour, you should bring in $4,000/week, right??? WRONG!!!
Unless you are working at least 20-25 hours a week ON your business:
- Marketing—writing your blogs, Social media content, e-news letters,
- Calling for appointments,
- Attending networking events,
- Meeting with prospects,
- Being seen where your prospects ARE – your business will FAIL in a couple of years.
So even on a good week – you only have 15-20 hours to work and produce billable work!
How many times do networking events, lunches, after work drinks and other social engagements get in the way of getting up at 7:00 pm and getting ready for an 8-hour workday?
Do you group all your outside–of-office-activities on the same day and leave at least 2 full uninterrupted days in the office so that you can complete 16 hours of billable hours? Every week?
But you are in business for yourself and can make your own hours, right? Yes, but make sure that you get in at least 25 hours of marketing and 16 hours of billable work EVERY WEEK.
Back to the math – if you only work 16 billable hours a week, and you bill $100/hr, you are bringing in $1,600/week or $80,000.00/year
Let’s look at your prospects:
OK – so you want to bill $100/hour and you need to bill $2,000/week (but right now you can only bill $1,600 (IF you have the work).
What kind of work do you want?
If your products and services cost $1,000 – you need 100 projects a year to make $100,000: that’s completing 2 projects a week.
I don’t know about you, but it takes me a little “process time” to understand the needs and values of my client and I can’t produce $1,000 project in 10 hours the first week.
Since I come from a fund raising background, I look at prospects and their potential value to me a little differently.
If you told me that you wanted to raise $1,000,000 but weren’t going to ask anyone for more than $1,000. How many people would you need? 1,000 people!!!!!! I don’t know 1,000 people who would hire me, or (100 people sustained for 10 years!) who will pay me for my services.
If I was fund raising for $1,000,000: ideally I want one person to give me $500,000 and 2 people give me $250,000 (that doesn’t always happen, but you target bigger donors first to get the bulk of your funds.)
So in business, if I want to make $100,000, then I want to identify clients how can pay me $50,000, $40,000, 30,000, and 20,000/year!! And not have to work my butt off!
How do you identify these prospects? Research, educations, meeting them and having them see the value that you have offered their colleagues and competitors.
Find out what they want and how much they are willing to pay for it. Stop thinking a certain dollar per hour and start thinking about VALUE and REVENUE for your client – what value do you bring and what it is worth to them.
IMPACT! offers consulting services that will assist you with your audits and help you to identify your ideal clients and prep you for your meetings with them.
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