Every week I speak with solo-professionals and aspiring solo-professionals who are struggling to reach their goals or who are looking for a “road map” to make their business profitable as quickly as possible.
I ask them some very direct questions, not to be mean, but to help them realistically assess whether they can get to their goals in the business model they’ve chosen AND to determine what it’s going to take to make that happen.
- What kind of marketing will they need to do?
- How much marketing will they need to do?
- How much will they need to invest?
- And, are they ready, willing and able to do this to get their business up and running and profitable?
Sometimes we validate they’re on the right track. Other times we discover they’ve got an awfully tall hill to climb and they may want to reconsider if this is really the direction they want to go.
Because you see, there are so many different business models and revenue strategies you can choose from as a service professional. And, the math to make each one profitable can vary widely.
Consider these 5 very different Business Model scenarios and what it would take to get to a $100K/year business:
- Consulting Model: 2 – 3 clients/year
- High End Coaching Model: 8 – 10 clients/year
- Lower End Coaching Model: 17 – 34 clients/year
- Membership Model @ $100/year: 1,008 members/year
- Info Product Model @ $97: 1,032 sales/year
Yes, there is a HUGE difference in what it would take to get each of these business models up and running to the 6-figure level (your goal may be different, I’ve just chosen $100K as an example). And my goal for every solo-professional is to get up and running in the business model that will enable them to be profitable quickly (within a matter of a few months).
Each of my successful businesses has been able to do that, based on one or two main product or service offerings. Yes, a very simple business, up and running and making money within a matter of months. That too should be YOUR goal. Because after all, who really wants to, or can afford to, go 6 months, a year, or years trying to build a business and not make money, or lose money? In reality, that is not a business, it’s a hobby. And there’s nothing wrong with hobbies, but it is important to be clear about what you’re building.
So, where did I get the numbers for the above business models?
From reality. I have personally operated ALL of these business models, and all are based on a very realistic “going rate” for the types of services represented.
So why is it so important to look at the numbers BEFORE you go into business?
Or, if you’re already in business and you haven’t looked at the numbers, why is it important to STOP RIGHT NOW and do so?
Because you want to know EXACTLY what it’s going to take to get that business up and running and profitable, so you can decide if you want to move forward, or continue investing time and money into that business.
Unfortunately, many people launch their business with a big goal and a big dream, but haven’t done the math to see if that dream and goal are indeed achievable, OR what they’re going to have to do to get there, and can they afford to do that, and is it something they can get excited about doing?
By looking into the “Reality Mirror” FIRST, you can save yourself a lot of time and money chasing dreams that may just prove to be unreachable, or at least unreachable within what YOU’RE willing to do.
And you can then re-direct your efforts into a business model that you’ve determined IS feasible based on your current situation.