I remember my mother showing me the first dollar she made in her business. It was just a dollar, but she was proud of it. She kept it for many many years. Nowadays, new business owners want to make a lot of money fast. So much so until they can’t even see the value in the beginning stage. As a new business, you need to maximize where you are. If you can accomplish the small things, then growing into your next will not seem so hard to do.
Recently, I had a casual conversation with a guy about his new business. He didn’t know I’m a business coach. He is just getting started and he’s bootstrapping it. I just listened for a while as he talked about the equipment he wants to buy for his business. Maybe if only I could just get this, then I can do that….was the sort of things he said. I finally stopped him and asked why he was making it so hard.
I learned a lot about him just listening for a few minutes. He was not aware of the amount of money he really needed to make in his business. He also had not considered the number of sales transactions he needed so he could do the things he wanted to do.
As a coach, it’s extremely important to understand your client’s real pain. Furthermore, it’s equally important to help your client see that pain for themselves.
Let me briefly explain…
You see, this guy wasn’t aware that there is a “new” way of doing business. His business is very common and easy to start. But…just like any new business owner, he thought he needed more than what he had. In his mind, he needed more equipment to do more jobs. When in fact, he needed more clients to create more sales transactions using the equipment he already had.
He hadn’t maximized or outgrown where he was…
I’m sharing this story because I want you to stop, clear your mind, and ask yourself if you have outgrown where you are. Has your business reached capacity? Have you made all the money you can make at your current level?
I eventually told him what I do as a business coach. I then asked him how many sales he needed to make to buy the equipment he wanted. Instead of answering the question he proceeded to tell me that there were more expenses than just the desire for new equipment and how it would take a really long time to get. I rephrased the question and the conversation went like this…
Me: How many services can you do in one day?
Him: Five or Six
Me: Ok, and how much do you charge for the average service?
Him: $40
Me: Ok, I know you work a full-time traditional job. So, is Saturday the only day you’re able to work your business?
Him: Yes
Me: Ok, so in one month you can make over $950
Him: (look of disbelief) Hmm…Ok, well I guess I could do something with that.
He was trapped in thinking he could only make money if he had more equipment. He was making it hard.
We then discussed how he needs to focus on getting more clients. He needs to attract enough buyers to fill his schedule for each week. After all, he only needed to secure 5 or 6 jobs each week that he would fulfill on Saturday.
It sounds very simple, but most people think too big too soon. So, don’t wreck your brain trying to make 6-figures if you haven’t made your first consistent $1,000.
Here are three discoveries to make about you and your business model…(1) What is the maximum amount of time you can commit 100% to provide your services. (2) How many services or sales transactions can you provide during that time? (3) How much are you charging for your service and why?
Your ability to fulfill.
The first discovery is to find out what is the maximum amount of time you can commit to servicing your clients. Most new business owners wear all the hats in their business. There is only so much you can do by yourself. Also, new business owners may still work a traditional job and therefore time is even more limited. Fulfillment is the process you take to make sure your client gets what you promised. The ability to deliver is crucial to the “customer service experience”. How many hours or days per week can you spend servicing your buyers? This is not the same as the time or work required to attract new clients. You must have time to work directly with your client. Think of this as your open business hours. What day will you dedicate to servicing your client? If you have a physical product, then what day do you ship or deliver orders?
Sales Transactions
There are two ways to measure sales transactions – the number of sales and the dollar amount of sales. For this discovery, you need to know the number of sales. How many services can you complete? You must make sure you maintain quality. If you only have one day to service clients, then how many can you serve on that day? How long does it take to deliver your promise?
Your Pricing
Now, what are you charging? There are many ways to decide on your price. You can base it on the industry standard, you value position or your end goal. But, keep it simple and don’t take too long trying to decide. As long as you know why you chose your price, then you will be ok.
Do the math
days available per week × Number of service hours per day ×
price per service × number of weeks per period
Calculate your right now goal using 4 weeks. Whatever your number, set a goal to meet or beat it each period. Set new goals as you maximize where you are.
New business owners face numerous obstacles. It can be scary to put yourself out there and fulfill your promises to your clients. Yet, the competition is everywhere thanks to social media. You must find your place in your industry and go for it. You can’t ease into business.
If you are finding it difficult to maximize where you are, then you may need to do one of the following…
- Increase your number of buyers
- Raise your prices
- Attract more leads
In conclusion, don’t make your next level harder to reach because you refuse to consider goals at your current level. Maximize where you are.
As the saying goes…there’s levels to this…
