Episode 144: Simplify Your Big Money Goals

Simplify Your Big Money Goals in 6 Steps

What is your next big money goal? Is it making $250K in a year? Or $500K? Or $1M?

Whatever it is, big money goals have one thing in common: they can feel a bit uncertain and may even leave you feeling overwhelmed or unsure if it’s even possible. 

This is all normal because, naturally, your goals are something you haven’t achieved before. However, we need to shift those feelings of impossibility and uncertainty and frame your goals in a way that feels simple and doable if you want to create success.

I have a 6 step “goal math” process using basic mathematics that will help you simplify your big money goals, and I’m sharing those steps with you in this episode.

In This Episode You’ll Learn:

  • The 6 quick goal math steps you can use to simplify your big money goals.
  • Which numbers are essential to know so you can set yourself up for success.
  • How to use goal math to help you make decisions about your pricing, offer suite, marketing strategy, and more!

Hey. Hey. Welcome back to the podcast. Today I want to talk about your big financial goals. I know that you've had them, and yet sometimes they feel maybe overly ambitious or out of reach. And I want to help you break things down. I think by nature, when you're setting a big goal, it's usually something you haven't achieved before. And if that's the case, it's it's a number that you're aiming for, that you're striving for that might lead to feelings of overwhelm or uncertainty.

And in order to achieve your goals, we can't sit in overwhelm and uncertainty while we're going after them, right? Those are normal feelings. I'm not saying we should avoid them at all costs, but when they come up, when you're feeling that uncertainty or overwhelm, we want to shift those feelings and we want to make your goal feel simple and doable my favorite way to do that is to do some math. So today we're going to do some goal math together. Okay? We are going to figure out how to make the math work for your goals. Now, a little caveat here. I know you and I see you. If you don't love numbers, if you don't love math, I totally get it. Most of my clients don't.

And yet as a CEO, it's important for you to understand the numbers behind the visions that you have, what's going to make this possible. And so I want to help you break that down. If math isn't your favorite thing, I'm going to try to make this very simple for you. And if you still need help, feel free to reach out. Okay? So here's how to do some goal math. First, you're going to define your business goals. So this is easy. This is the part that you probably already have a number in mind.:

If you don't, we're not going to overcomplicate this step. I want you to simply clarify what your business goals are by setting a revenue target. And then I want you to set an associated timeline. Now, I've taken clients through this exercise for different timelines. We've looked at three years out. We've looked at an annual goal. We've looked at quarterly or monthly goals. It doesn't matter.

If you want some guidance on where to start, I would say let's look at a year. Okay? So whatever your revenue goal is for, let's say the next year, write it down. Now, I don't want you to complicate this. If you're listening to this in the middle of the year, it can be for the next calendar year, it can be for the next twelve months. Whatever you want to do again, don't overcomplicate it. Okay? So let's use an example here. Let's say that you want to make a million dollars next year. Your goal may be more or less than that.

By the way, I have clients who are under that who are working to get to a million. I have clients who are beyond that, we're just going to use it for easy math. Okay? So the million dollars, just easy generalized goal, that doesn't mean that's the amount that you want. So choose your number. Okay, so set a goal for X dollars over the next year. Okay. Step two, you're going to calculate how many cells you need. This is really simple math to figure out how many sales are required to hit your goal.

All you're going to do is divide your revenue amount. That goal that you set for revenue by your offer price. If you have more than one offer, we're going to cover that in a moment maybe right now. Just choose your signature offer or choose your average sale amount. If you don't have set packages or anything like that and it varies, just choose the average sell amount. Okay. If your goal is a million dollars and let's say that your offer is 1000, then you need 1000 sales, right? So 1000 sales at $1,000 equals a million. Now we're going to break that down even further for step three.

You're going to take that annual goal and we're going to make it more digestible. So let's take that 1000 units per year and we're going to break it down by quarter, month, week, even day if you want to. Okay? So if we need 1000 sales, then for the quarter we're going to divide that thousand by four to get 250 sales. We need 250 sales for the quarter. If we divide that thousand for the year by twelve months, then we get our monthly goal. We're always going to round up. So some of these don't break out exactly evenly. We're just going to round up.

You can't have half of a sale. So in this case we're going to round up to 84, 84 per month. If we take that thousand sales and we divide it by 52 weeks in the year, then we need 20 cells per week. And if we take that thousand cells and we divide it by 365 days, we need three cells per day. Okay. And again, note some of these numbers are rounded up. So three cells per day and 20 cells per week. That math might not math to you, but know that that's because there's some rounding.

Okay? So that's how you break it down even further. Once you do that, my guess is you're going to have a gut reaction to that number. Some of my clients, based on their offer price and the revenue amount that they want to hit, once they do this math, they have this gut reaction like, oh okay, that's not that bad, right? And they think this is definitely simple and doable. Some of my clients, they have an AHA moment and they need to take time to do what I'm going to explain next. In step four, they realize, okay, this math doesn't quite feel right. Maybe it still feels overwhelming. And that means you might need to adjust your strategy. Now, there's two core ways we're going to talk about adjusting your strategy.

In this example, let's say that generating that thousand sales, in other words, serving 1000 customers, maybe that feels overwhelming. Maybe you're like, I've never sold anything close to 84 sales in a month. Or maybe you're like, if I had 84 new customers, I don't know how we would handle all of that volume. We don't have capacity for that. If either one of those is true and you're feeling a little overwhelmed, then we need to make some adjustments. The first thing I would look at is your pricing. And it might be time to make an adjustment in your price. So let's say that we do that.

And now instead of $1,000 for that offer, maybe your price increases to $2,000. And now you only need 500 sales for the year. And then you can break that down into quarterly, monthly, weekly, right? Or maybe you decide that that price is as high as you think that your market can stand for the offer and the amount of support that you're providing. And if that's the case, then you could consider diversifying your offer suite. Maybe that's selling really well. It's just selling at a lower volume and you think it's time to add on a new offer instead of trying to sell more of that first offer. So maybe you add a second offer that's a higher level with more support, and maybe it's high ticket and you sell something at ten K. If your goal is 1 million and you have two offers, then maybe for the first offer priced at two K, you set a goal of $600,000 from that one offer.

And in that case, you'd now need 300 sales for the year to get that product right. Then your second offer, you'd want to make up the difference. So if you're selling your second offer at ten K and you need to make up the difference to get to your goal of a million, then that means you need to sell 400,000 for the year and that equals 40 sales. Now, one important note I love when you diversify your offer suite and they are aligned in a way where you don't actually need new customers, but instead you can upsell the customers that you have. So the 40 sales could be the same customers out of the 300 pool of people who you just upsold into a higher package, right? So you still aren't spending more from a marketing perspective to reach new people. You're investing more into serving them and upselling them. And there's of course, the marketing involved, but it's not the same investment as going out to acquire a new customer. So that will help from a profitability standpoint.

Okay, so maybe you've adjusted your strategy. You get the numbers to what feels better. Now, step five, I want to convert these to marketing goals because it's one thing to have a sales goal. It's another to take that a step further and understand how to reach that goal with a leading indicator on the marketing side. Okay, so what do I mean by leading indicator? A sales number is a Lagging indicator. That's what happens last versus a leading indicator is a number that you can measure prior to the Lagging indicator as far as to know how well you are on pace to that goal. Okay, so if we look at some leading indicators from a marketing standpoint, let's talk about both offers. So let's say for your first offer, offer one that you've got the goal of 300 sales per year, which breaks down to 25 sales per month.

We want to divide that by your conversion rate. This is going to be the conversion rate for the sales mechanism that you choose. So in this example, we're going to use a webinar. You might convert someone from a lead to a sale using a lot of different strategies. I'm going to give you two examples. This one's with a webinar. So let's say that you have a webinar that converts at 3%, meaning that out of all of the registrants who enroll or register for that webinar, 3% of them go on to purchase. What you're going to do is divide the 25 sales per month that you need by zero three, in other words, 3%.

That gives you 834 registrants needed. That's how many people you need to have enrolled in your webinar. If you only convert at 3% to get 25 sales, if you can convert at a higher rate, then you could have fewer register, right? So it depends on your conversion rate. If you don't know what your conversion rate is, then you can definitely use 3% as a nice average. With that said, I recommend that once you do a webinar, the first time, you figure out what your conversion rate was and then plug that percentage in when you do the calculations for the next time. Okay, so that's offer one. Let's go to offer two. Let's say for offer two, you've got the goal of 40 sales per year, right? This is your ten K package.

You're selling 40 of those for the year, and that breaks down to four cells per month. Now, again, this math is rounded up. It technically breaks down to like 3.33 cells, but you can't have a partial cell. So we're going to round up. That means that if you actually hit this goal of four cells consistently, you're going to exceed your goal for the year. That's fine. We'd rather have that than the other way. So I'd rather round up than down in this case.

So for 40 cells a year, that's four cells per month that you need to hit. Let's divide that by our conversion rate for your sales mechanism. Let's say this time the way that you're converting sales is with a one to one sales call and let's say you convert at 70%. That means for every ten people that you get on a sales call with, you would convert seven people, right? 70%. Now we only need four sales per month and so we're going to divide the four by zero seven, that's the 70%. And that tells us that we need six sales calls booked in order to land four sales. Okay, so now we know that we need 834 registrants and we need six sales calls booked to hit our monthly goals. For each of these offers, the next step is simply to define your marketing strategy.

Now you have your leading indicators. You can tell whether you're on pace to hit your sales goals or not based on how many calls you have booked and based on how many registrants you have enrolled in a webinar using these examples. Okay? So then you're just going to ask yourself, what marketing strategies will I use to book six sales calls per month and 834 registrants on a webinar? Okay? These are average numbers by the way, so you don't have to hit the same number every single month. In other words, you might start out at a lower number and over the year you get better, you get more effective. And so you are able to hit your million dollar goal without that being spread evenly month to month. That's something you need to be aware of. But this gives you a good guide, right? If you start out with a goal that is evenly spread out, then if you achieve a little less than that at the beginning and then later you exceed it, you're going to average out. So just know you need these average numbers.

One other thing that I'll mention is maybe you don't want to use that same sales mechanism every month. A webinar is a good example of that. You might not want to do a webinar every month. Maybe you only want to do a webinar once a quarter. That means that instead of 834 people registered per month, you're just going to multiply that by the three months. And you will aim to have 2500 people register for the whole quarter, right? If you do one a quarter, then you can back that out, right? So all of this said, I know this was a lot of math, but understanding the numbers behind your business goals isn't just helpful, it's really truly essential. It helps you understand what exactly is required and it helps you be able to communicate that to your team so that they know what is required as well. They need to know what's expected and they need to know what they're aiming for.

So when you know exactly what you need to achieve and you've broken it down into manageable targets, you set yourself and your team up for success. There's no more guessing, there's no more hoping. You have clear concise targets that you and your team can work together towards to hit. Okay. If you're still finding any of these calculations a bit tricky, I know that, again, many of my visionary clients just aren't super comfortable with the math. If you want to focus more on profit instead of revenue, maybe your revenue is in a great place, but your goals are more centered around profit. Or if you'd like to discuss some strategies to make these numbers happen, I want you to know that you can reach out, feel free to touch base, and we can talk about options to work together. And we can make sure that you and your business are on a path to achieve your goals and to hit all of the numbers that you've set.

Okay? So if you find yourself needing to discuss something, let me know. I'm here for you. I'm here to support you. Math is my jam. I love talking numbers. And I can help explain this in more detail. Break it down, use your exact numbers, your offer suite, your pricing, and put together a custom plan for you. So, again, don't hesitate to reach out.

If you want to explore how to work with me, you can visit my website or feel free to send me a DM on Instagram, and we can chat there, okay? All right. Have a great week. Go do some math and make those goals and targets crystal clear.

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