How on earth can I realistically get to $100,000?
Here are the Show Notes from the Episode:
**keep in mind that show notes are raw and only highlight what is in the episode. Listen to the show for the full content**
Episode 7 – Question Episode – How Can I go from $35k to $100k Profit?
Welcome back to the Local Small Business Coach Podcast, I am your coach Tammy Adams.
And today, I thought we would go ahead and start our Friday Questions. Eventually I’m hoping we get some great questions and have 1-2 days a week of questions.
I’m a firm believer that we can all learn from others so I’m excited for us to share each of our challenges so we can learn together.
So let’s dive into our first question. I grabbed this one since it ties into the theme we have been having on getting your business up to a $100,000 profitable.
This message is from Cliff… Cliff writes…
I listened to your 2 episodes on making $100,000 in my business. Last year I only made $35,000 and I worked my tail off just to get to that. How on earth can I realistically get to $100,000? Thanks in advance for any insight on how I can get started.
I can totally understand that this might seem like a huge hurdle and currently you just can’t see how you are going to make this happen.
Now, you don’t mention what type of business you have so I’m going to be a little more generic but you should be able to adapt this to your business.
But first, let’s address the elephant in the room.
Can ALL local small businesses get to $100,000 profit?
I’m not going to pretend that each and every business can. For example, a dog walking business is going to have a tough time as that is a lot of dogs at a low price.
However, with that said, while 90% can’t there are probably 10% that can. They will need to scale it using other people. Creating a team of dog walkers and hiring independent contractors to do the work.
Also a dog walker in a city location is going to do much better than a dog walker in the country.
Another great example is, an AC repair tech in Arizona is going to make some serious cash compared to an AC guy in Alaska.
So the key take a way is you must have the right business in the right area. You must set yourself up for a business that has the best potential to grow.
But honestly, the vast majority of local businesses can have a shot at this milestone, you just have to realize you might be building a team vs individual type of business.
So if you have one of these types of businesses, then just think creatively.
Ok, let’s get back to Cliff, and let’s assume he has a scalable business.
First, please know it is possible.
The key to accomplishing this goal is to realize it just can’t be “business as usual”.
If you are like most small business owners, your time is already maxed out and the thought of doubling or tripling your business is not feasible “doing what you are already doing”.
The best way to attack this goal is to break it down. Just like we did in episodes 3 & 4. Now, I’m not going to rehash those episodes but if anyone hasn’t listened to them yet, just check them out afterwards as I go into more detail.
If you and I were to sit down and go over your business, the first thing we would do is look at your sales, your profit and your expenses. Right away we would be able to identify a potential issue if you didn’t have clean books to even have this dialog. There is no way to make that leap if you don’t know your current situation.
Assuming we could keep going, we would use these numbers to identify any current low hanging fruit. This means any easy, quick fixes to instantly add sales, increase your profits or reduce your expenses. For example, we would look at your invoicing system and if you are collecting all your money, and we would look for any add on items you could start right away. Stuff that we’ve been talking about in the past episodes.
We would also set targets using the excel sheet I shared. But instead of looking at the $100,000 goal at this point, we would look at what you need to do to go from your $35,000 to say $50,000. This way you could incrementally increase your business in smaller, more manageable chunks.
The reason we do this is, you will want to break it down into more manageable bites. Don’t get lost in how you will get to the $100,000 but rather do it in $20,000 increments.
This goes for all of you. It is too easy to get discouraged when the target is so far way.
If you went from $35,000 to $60,000 you would be ecstatic but if you only compared it to not being at $100,000 you would get depressed that you were too far away still. So DON”T look out further than you need to get to the next level.
If you were to start to walk from California to New York, the key is not to focus on New York, you would break that trip down into first getting to New Mexico, then St Louis, then Ohio, etc. you get the point. Each stop getting you closer to your ultimate goal.
Once you identify that first milestone and you’ve cleaned up all the no brainer easy fixes, you will need to dive into your current processes and managing your time better.
During your weekly “working on your business” sessions, start brainstorming on marketing ideas, add on items, how you will leverage social media if it works, anything that might drive more sales.
Remember, your goal is to increase by $20,000 – $30,000 at a time. What can you do now to hit that next level.
Don’t forget, also focus on any profit leaks you might have. You must work both parts of the equation – Both sales and profits.
Keep in mind, that as you grow, you will find that at some point, will need additional assistance to get to the ultimate target but for now, just focus on your own inefficiencies. When you are ready for this step, make sure to budget for this new expenses and how you will use that extra time to pay for this new person.
This should help get you going at least to your first goal and then just keep rinsing and repeating your way up to that $100,000 in profit!!
You can do this Cliff! I have faith that as long as you set aside time each week to work on your business and you keep finding ways to tweak here and there and improve your processes you will be amazed!
That was a great question. I know a lot of folks have been asking themselves the same thing.
Listen, I know that for many of you, the thought of getting your business to this $100,000 mark is a goal you want set, but right now you just can’t see it happening under your current situation. And you would be right.
There is no way to do it by doing what you are currently doing. It is all about that tweaking and improving. It is about setting a plan and putting that plan in motion.
By the way, just because I’m using the $100,000 profit example, this plan works if you want to just double your current business or you want to go from $100,000 to $150,000.
Listen and learn from other small business owners what they are doing to consistently grow their business.
You can learn a lot from them.
Matter of fact, if you have a business that you continually grow your sales and improve your profits, do me a favor. Either leave a message on the website or shoot me an email at email@example.com and share what your best practices are to accomplishing your success.
What would be the one piece of advice you would love to give your fellow local small business owners?
I’d love to hear from you. Matter of fact, I might put something on both websites to capture your ideas. One of my goals is to put together a top 10 best practices we can share with all local small business owners. So shoot me what you have found to be successful so I can share on the podcast.
Don’t forget that if you want the excel spreadsheet that you can use to discover what you need to sell annually to hit your $100,000 plus it will show you how you can break that down by month. You can find that at LocalSmallBusinessCoach.com/episode3
I’ll see you on the next episode where we will get into a discussion on customer service.
In the meantime, remember, if you like what we are taking about, then make sure to subscribe to the podcast so you don’t miss an episode, if you love the podcast and what we are talking about, then please leave a 5-star review so other local small business owners know this is a podcast that they can’t miss.
Also don’t forget to visit the website at LocalSmallBusinessCoach.com to leave your question for me to possibly answer on the podcast in the future. You can leave it via the speakpipe button or just shoot me an email. Coming soon I will begin answering your questions on the podcast.
See you on our next episode…Bye for now…..
Have a Question You Want Asked on Air? Shoot Me Your Question
Podcast Website: LocalSmallBusinessCoach.com
Leave your Message on the website with the SpeakPipe Button or just email me at Tammy@LocalSmallBusinessCoach.com
Episode Show Notes: Episode 7 – Local Small Business Coach Podcast
Our Training Materials for Local Small Business Owners: TrainingforLocalSmallBusinessOwners.com
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