Want to know what it takes to create $100k in profit?
Not sure how to get there?
Take some words from the wise…setting sales goals alone won’t be enough.
If you’re being driven by vanity metrics and hoping that will magically turn into customers who then will want to throw lots of money your way... we’re going to need to work on that.
If you’re carrying around a “just enough to survive” attitude and don’t even see $100k in profits in your future, you’re missing an amazing opportunity to secure your future.
We want you to create wealth, stability and a lovely safety net. We can even use your $100k profit goal to create a marketing plan with clear goals for you to focus on.
If you’re not scaling right now, but you're also not happy with the profit you're earning (because not everyone wants to scale) I have you covered, too!
Here are your five key takeaways:
Links mentioned in today's episode:
Emily Osmond interview
Credit Card Extra Repayments Calculator
Mortgage Repayments Calculator
The Profit Lovers Podcast Intro
The Profit Lovers Podcast Outro
GET EVEN MORE PROFIT LOVIN' IN YOUR BUSINESS (AND LIFE)
Download the FREE Profit Lovers One Page Plan + Track
Come and say HI on the GRAM
Happy Profit Lovin'!
Want to know what it takes to create $100k in profit?
Not sure how to get there?
Take some words from the wise…setting sales goals alone won’t be enough.
If you’re being driven by vanity metrics and hoping that will magically turn into customers who then will want to throw lots of money your way... we’re going to need to work on that.
If you’re carrying around a “just enough to survive” attitude and don’t even see $100k in profits in your future, you’re missing an amazing opportunity to secure your future.
We want you to create wealth, stability and a lovely safety net. We can even use your $100k profit goal to create a marketing plan with clear goals for you to focus on.
If you’re not scaling right now, but you're also not happy with the profit you're earning (because not everyone wants to scale) I have you covered, too!
Here are your five key takeaways:
Links mentioned in today's episode:
Emily Osmond interview
Credit Card Extra Repayments Calculator
Mortgage Repayments Calculator
The Profit Lovers Podcast Intro
The Profit Lovers Podcast Outro
GET EVEN MORE PROFIT LOVIN' IN YOUR BUSINESS (AND LIFE)
Download the FREE Profit Lovers One Page Plan + Track
Come and say HI on the GRAM
Happy Profit Lovin'!
0:00
Welcome back to the profit lovers podcast. I have been off with the spicy flu as has not who works for me and my other videos on maternity leave. So let me tell you, this was a captain Lois and cruellest ship over the past couple of weeks back into it, I still sound a little weird, a little nasally. We're just gonna go with that. Why don't we enjoy a lovely $100,000 in profit from your business. We're not talking sales, we're talking profit, but not sure how to get there. We'll take some words from the wise, setting sales goals alone just won't be quite enough. It takes more than a sales goal to get you there. If you're being led by vanity metrics, and you're hoping that that will magically turn into customers. And then those customers will want to throw lots of money your way? Well, we're going to need to work on that. If you're carrying around a just enough to survive attitude, and don't even see 100k in profit in your future. You're missing out on an amazing opportunity to build financial security. We want you to create wealth, we want you to create stability, we want you to have a really lovely safety net. We can even use your 100k in profit goal, to create a marketing plan with clear goals for you to focus on. I want to know how Of course you do. It's all in today's episode, if you're not scaling a business right now, but you're also not so happy with where you're at. Because not everybody wants to scale right? I have you covered. If you've checked out the latest updated version of member's Club, you'll have noticed the focus is very heavily on creating 100k Or your first 100k and beyond in profit. So in today's episode, I want to share with you why this number is so important. Even if members club isn't for you. If you're not looking at investing in a mastermind or group coaching programme, please make sure you stick around and listen to this advice because it is important. I'm gonna give a quick shout out to my friend Emily Osmond. She was a guest on previous episode, and I will make sure I link that in the show notes. And I know many of my profit lovers are also members of the modern marketing collective. Emily and I were talking probably months ago now about sales calls and about the number of people that we both talk to about setting goals who will say things like, I don't really need much to survive, or as long as I earn X amount, I'll be able to cover my bills. But here's the deal. 100k in sales does not actually go far, when you're covering the costs of running a business taxes retirement savings, a regular healthy wage, and profit to reinvest or to take out of your business when you need it. Let me break down what 100k In sales looks like. And I do know for a lot of women in business that six figures in six figures in revenue is a goal that they focus on. So let's break down what that looks like. If you're spending let's say $500 per month on subscriptions like Xero, or QuickBooks, web hosting insurance, your things like Canva, an email marketing platform.
3:52
Did I say web hosting web hosting already said that these things all add up fast. So $500 a month might sound like a lot. But it isn't. And if you're really trying to squeeze down that $500 a month, you're probably missing out on a lot of the automations and great things that those tools can do for you and your business. So you kind of backing yourself into a corner, right? So if we say $500 per month on those subscriptions, there's $6,000 a year gone already. And as I said, it's a small budget, it doesn't leave you a lot of room for investing in better tools, right? Or better automation or better outsourcing. Now let's take another $500 per month in marketing or ad spend costs. Also not a huge budget, but we're keeping it lean. And I know that there will be a lot of you that are like $500 a month in marketing or adspend. I'm not spending that. Well. You probably want to think about it because if you were spending $500 A month investing, let me say investing you would be generating leads new clients, new customers new sales and increasing your revenue. So let's allocate $500 a month to marketing your ad spend, we now have $88,000 leftover, we've taken out your marketing and ad spend, we've taken out just those general running costs for all of those subscriptions, we'll have an hour $88,000 available from your $100,000 in revenue. Now, we want to leave some cash in the business so that you're not constantly hitting zero and freaking out. We know when freak outs happen, that desperate actions follow, like dropping prices, or creating new low profit offers. So we're gonna go wild and leave $4,000 in your business bank account. So our number is now at $4,000, which is nothing to sneeze at, that's a good amount of money. But now, we need to make sure that we're covering your superannuation, your retirement savings, we need to take out 10% For that, because you need to be planning for these things. There's another $8,400 gone, we're now down to $75,600, which is not about income, let's, let's not be silly, that's a good income. Now, let's do a rough tax estimate. And I'm doing this based on the Ozzy rates. If you're not in Australia, check out the figures on a tax calculator. Every country has them. Every country that I've ever pay tax in, which has been the UK and Canada, and Australia, New Zealand, they've all had tax calculators. So we're gonna do a very rough and ready estimate here. Of course, your situation might be different. But we're making general estimates, you're going to have to pay in Australia, about $15,000 in tax. So that's going to leave you with about $60,000 per year, or $1,134 per week. And once again, let me be clear, there is nothing wrong with that income. That's a solid income. For women. It's slightly higher than the average Ozy Income For Women, which is $54,000. And it's well under the average income for men, which is about 28%, higher at around $70,000. So my point is $100,000 in sales is not nearly as much as many business owners think it is, especially if you're a business owner, who doesn't have a whole lot of confidence around income, tax management, profitability, if you're not great with the numbers, or if you don't really know what your expenses are. His a deep driving desire that I have for member's club and the profit lovers is to illuminate the reality of what is really needed to create financial stability. I would love to never hear the words, I just need to survive at it again. Yet I know that is a feeling for many, many women, if they can just survive. If they have enough to cover their bills and a little leftover, then they will be okay. But I don't want you to be okay. I want you to be financially secure. I want you to have the freedom of choice. That comes with having a healthy safety net insurances retirement plans.
8:45
It's not sexy, I know it, I get it. But it's important. The percentage of female taxpayers under the age of 50, who make $100,000 per year in income is just 6%. Six freaking percent. Women do 60% of the world's labour and receive 10% of the income. Probably not so shocking. Women are three times more likely to be responsible for unpaid caring responsibilities. And we also know that women hit retirement with less than half in retirement savings as men. We can't survive on a government provided pension. The rental market in Australia is out of control. No matter where you are in the world. House prices are soaring. We're expected to see a 5% increase in the cost of living this year. And that's scary. It's just not enough to plan to survive. And I think no, I know you're worth more than that. Anytime I talk about money and making more of it, I get pushback. I get the angry it's not all about money, emails, and it's not all about money. In fact, the profit lovers met Enter is profitable, livable and lovable. It's about finding a balance for you that works. It's not just about profit. If you don't build your safety net, if you don't create your own financial security first, then there's a very good chance that you're going to become reliant on either a social care social welfare system that barely covers your basic needs, or the generosity of friends and family. I hope your children like you. Alright, so let's get into five key points that I want you to take away from this episode. Number one, sales goals alone are not enough. sales goals are essential, for sure. And I want everyone to have them. And I want you all to track towards them weekly, yes, weekly. I also want you to have personal success goals that have nothing to do with sales. Why? Because using your business to build wealth, and reach goals outside of just reaching a sales goal will help you see and enjoy the full value of being self employed. We're building businesses that create and support change that build financial freedom. And those goals don't necessarily need massive sales goals. To achieve that. Let me give you a quick example in members club last year, we did a challenge around creating an extra $100 per week in profit. And we looked at the different ways that you could use that $100 to pay down debt, invest in shares, build savings, all of that good stuff.
11:40
Now, quick disclaimer here. We are approaching this with super simple maths, we approached it last year with super simple maths, of course, you're going to need to pay tax on that $100 in profit. So it's probably more likely that you need to create an extra $130 to be able to pay yourself 130 away from tax. But we're not going to complicate things. Okay. So if you had a mortgage of $600,000, and an interest rate of 3.5%, and you took an extra $100 per week and applied that to your mortgage, you would pay your home off six years and 28 weeks earlier. And you'd save yourself around $90,000 in interest, just an extra $100 per week, we'll help you achieve that. Six years and 28 weeks earlier, that's huge and $90,000. In interest, it's massive. If you invested $100 per week into a share portfolio with an average rate of return of 8%. For the next 30 years, you'll create a $620,000 nest egg for your retirement. But here's the most amazing part of that you'd be investing around $160,000. But thanks to compounding interest, you'd end up with almost four times that amount. And yes, of course, there are variables in there, we don't know exactly what the market will do. 8% is an average they give over a 10 year period, we don't know for sure. But this will illustrate that you don't need massive massive sales goals and massive massive increases in your revenue to make a pretty significant impact on your life. So back to my initial point, sales goals alone are not enough, because they're not your only indicator of success. profit goals. More important, in my opinion. If you've been listening for a while you know my thoughts and feelings on sales goals without profit goals. Sales won't change your life profit will. If you want to hit $100,000 in profit, you need a bigger set of success indicators than just a sales goal. Number two is vanity metrics are working against you. When everyone around you is talking about six and seven figure sales goals. I know how easy it is to want to be part of that crowd. I know how much validation can come from hitting those numbers. However, a big sales goal with no profit goal is a vanity metric. You're not chasing it to improve your financial circumstances. Because chasing big sales goals won't do that. You're doing it so you can call yourself a six or a seven figure business and I get it. It's great for marketing. If you want to do that, go for it. But you must have that combined with a profit goal. Otherwise, you're going to reach a number that brings in a lot of cash, but it's also fraught with danger. Bringing in huge sales requires careful care Supply Management. It requires strategic outsourcing. It requires tax planning, and it requires profit planning. Or you will end up with a business that is a behemoth of potential debt complication expenses, overheads, and headaches. Sure, you'll get to enjoy your vanity sales metrics. But everything else in your business will suck. Vanity social media metrics are a hotbed of distraction for business owners, outsourcing your social media just to get it off your list. And so you have a presence is profit sucking. If you're wanting to reach 100k in profit, you need to use your revenue wisely, and invest in marketing that you know, pays off. Having 10s of 1000s of followers doesn't necessarily equate to sales. And if you don't have a marketing strategy, to move people from your social platforms, to your email marketing list, then you're building a following on a platform you don't own if you're hacked, or your account is shut down. If the Zuck screws around, like you did with Facebook business pages, you'll have nothing left. You're not creating 100k in profit with those tactics. Well, you're not creating it sustainably in year after year after year, right? If you want to hit 100k in profit, then my next tip, tip number three is you must plan for excess. Not for just enough. As I said at the beginning of this episode, if you're planning just to survive, then you're likely not planning for nearly enough. I ask clients what they need to hit in sales to survive what they need to live comfortably and what they need to thrive. And many, actually most can't answer that question or they're guessing at it, when I suggest that they dig into the actual numbers. They always underestimate their personal expenses by at least 30%. Usually more. Us humans are not good at estimating our expenses. Unless you're someone who is really budget-conscious, there is a good chance that you need a lot more to survive than you think you do. Also, what compounds that is, people aren't great at estimating their personal expenses. And they're terrible horrible at estimating what it actually costs to run their business. You have to know your personal needs, you have to know your business needs. If your personal needs, for example, equate to $75,000 per year, then you need to add in your business expenses on top. But still, that's not quite enough because you also need to add in your taxes. And there has to be some profit there so that you can choose to reinvest to scale your business or to make your business easier.
17:55
I remember a client years ago telling me she just wanted to replace her full time income, which is a really great goal to start with. But to her that meant she needed to make $60,000 per year. So that was a sales goal. It was not nearly enough, I want you to plan for an excess of profit, not thought just enough because just enough keeps you stuck exactly where you are today. We want you to have more than enough and if you choose to give that money away, so be it as long as you have choice. I also encourage you not to think about what you need today, or even this year. But what you're going to need in the future. US self employed ladies are not good at contributing to retirement funds. Actually, in my experience, no self employed person is great at it, which leaves us in a very precarious position at retirement. Your employer is no longer putting aside money on your behalf. You are now the one that must take responsibility for that. Last question I just do three I always get confused at how many points I've just made. Last point, stick with me. By no means my final point on this subject because you know, I could probably record another 10 episodes on this topic. If you want to hit 100k in profit, you will need to back that up with a solid marketing strategy and key performance indicators. I've told this story before but I'm going to tell it again. I started a new role at a company back when I had a gob and the owner well casually leaning up against an ugly beige filing cabinet said we have a plan to hit $5 million in three years. To which I replied, that's amazing. Where's the plan? I was expecting him to whip open one of those ugly filing cabinet drawers. dig around a little. Then pull out some kind of document entitled five million dollar plan, he did not do that. Instead, he shuffled around awkwardly and said, Oh, there's no actual plan. It's just like what we want. And I'm gonna guess my face said it all, because he made a very quick exit from my office. And he never talked about that goal. Again. There was no plan, it took me all of three hours to run some numbers around average order values, average new client orders, stock turns, warehouse capacity to calculate what those goals to reach that 5 million looks like.
20:35
Did I hand it over? No, not because I'm an asshat. But because I knew from the get go to stay in my lane. Over the things I could tell company owners about how much they stifle their staff and miss out on the true value people can bring. Just another reason I work for myself, let's continue on, you can use your profit plan to generate your sales goals. So how much profit do you need, use that to create your sales goal. And then use your sales goal to create your marketing plan. There are some numbers you'll need to either gather or start recording. So it might take some time, but you will eventually get a really good feel for your numbers. And you'll get a really good feel for what levers you can pull or push on to generate revenue. I was doing this with Penny from mother natured last week. So I've been working with Penny for a while now. And she started with no real numbers or data that we could kind of pull from that would give us a good indicator of what was going on in her business. Last week, she sent me an email, it was a complete wrap up of a launch she'd just done, including, oh my gosh, there must have been about 12 data sets there. And she was even able to analyse those data sets herself, and tell me what the next steps were. And where she'd found a hole in her processes in her marketing. And it just blew me away that she was able to do that. Obviously, it shouldn't have blown me away. That's what we've been working towards. But I was so impressed. The numbers when you know what you're looking at, and you know what to look out for and how you can manipulate those numbers to help you reach your goals, it puts you in the most amazing power position. Also, if you just happen to need to get your kids off screens and outdoors, you want to connect your kids with nature, go and visit mother nature.com, I will once again link that in the show notes, great resources for parents who want to get their kids out side. Let's move on. If I know an average client stays with me for three and a half years, and they spend around $50,000 with me over those three and a half years. And I know that I need 10 clients to hit my sales goals each month, I can then figure out how often I need to be having conversations with potential new clients, and what conversion rate I need. The numbers will never be perfect because they aren't just a prediction. But that prediction is very, very powerful. You're not getting 200k in sustainable profit, as in repeatable every single year. If you throw marketing ideas at the wall and never figure out what sticks, you have to know your metrics. And it's not nearly as hard or as complicated as people think it is. Depending on your business, you may only need to look up three or four basic metrics you can do that I know you can. This is a really good reason for keeping your offerings simple to the more stuff you shove in the more profit margins you've got to track, the more marketing you need to figure out and keep an eye on and business just gets harder and harder when you have too many offers. Finally, what got you here won't get you there. Hopefully Hear For You is a place where you're already profitable and have enough coming in to pay you weekly or monthly, whatever you fancy, while also leaving profit in the business to reinvest in upgrades, outsourcing and other improvements. If you're stuck at a point you can't seem to get past. I know the sexy thing to do is to focus on mindset issues, breaking through your upper money limits. And yes, that might be it. It is also incredibly likely that you're not reaching your goals because you have boxed yourself in with a strategy that either isn't easily scalable or no strategy at all. approaching your business with a fresh set of eyes. has an open mind, ready to try new things. Perhaps a big edit of what's going on in your business and re strategizing is your next step. And sure, you can work on your mindset too. Of course, if you're not yet even at the point where your business is sustainable, you're not paying yourself enough or anything at all. And you're not able to reinvest to scale, then what got you here definitely will not get you there. What you got here, kinda sucks. To be blunt. It hasn't worked. And it's nothing to be embarrassed about, and certainly isn't an indication of permanent failure. It just means that what you're doing right now isn't working to your best advantage. And you need to reframe how you approach your business. I can't tell you how many reframes, I've had to do in my own business, when things haven't worked or things have stalled, it happens. Don't get upset by it, do your reframe, move on. Once again, there are many, many times also where I've worked with clients, and we've had to completely reframe their business, we've had to edit their businesses down significantly, we've had to take out a whole lot of complication, a whole lot of overstuffing of offers. A whole lot of maybe clients or customers that they really didn't need weren't profitable. We've removed out a heap of tasks, and we've been able to improve profits massively, just by simply reframing and simplifying.
26:30
Alright, my lovely profit lovers, let's wrap her up today. One, you need more than just sales to hit 100k in profit. To be wary of vanity metrics, they're likely just a distraction. Three plan for an excess of sales and profit. Do not plan for just enough to survive, or just enough to cover your bills. For usual 100k profit goal to drive your marketing metrics. And five, what got you here won't get you there. So if you're not scaling, it's time to change things up. I want to give you a takeaway, of course, like I tried to do in every episode, I want you to do a very, very quick exercise right now to fuel your motivation. Pick a goal investments, savings, paying down a credit card, a car, loan, a mortgage, whatever you like, pick a pick a simple money based goal. Do a quick Google search for an extra payments calculator or an investment calculator. Most banks have them. I'll throw in some of the ones that I use in the show notes, and chuck some numbers in and see what an extra $100 per week could do for you an extra $100 a week in investments or paying down that credit card or that car loan or whatever. Have a look and see what that could do for you. Once you've done that, and you have seen the power of an extra $100 of cash in your life every week, head on over to the profit lovers.com and get yourself on the members club waitlist. doors are opening in early May and I want to see a flurry of women creating financial security and freedom from their businesses by the end of 2022. Open cart for members club is delayed a little because a spicy flu. She sure did slow us all down. All right. Happy profit loving. Go and check out what that extra $100 can do for you. If you've got any questions about member's club if you want to have a chat to me about it. Then shoot me an email Melanie M famila at the profit lovers.com Happy profit loving
Transcribed by https://otter.ai