How To Work Backwards To Set Your Business Goals
Today I want to share my thinking process for setting smart business goals with you. I like to work backwards from a financial goal to daily to-do lists. Here’s how that works. It always starts with a money goal. It helps if that goal has a meaning beyond the dollar figure. For example, let’s say I want to buy a new car. The payment is around $400. To account for things like taxes and just to be safe, I’ll bump the goal up to $600. In other words, I need to add an extra $600 (or more… more is always better) to my monthly bottom line. Once that’s done and I see that level of income regularly, I’m ready to order my new car.
Once I know how much money I have to make, I can think about different ways to do just that. I could find more customers for one or several of my existing products. For example, if I have a $10 eBook, I would have to make an extra 60 sales per month. From there I can work backwards. If I know that on average one out of 10 email subscribers buy the book within the first month of signing up, I need to add 600 new subscribers to my list, which takes 4,000 new visitors to my site. If that’s my plan, I know that my daily to-do list needs to include plenty of action steps to ramp up my traffic by an extra 4,000 people per month.
That’s not my only option. I could also create another information product or eBook each month and sell it to both my existing and new subscribers. I could create a higher-priced item so I need to make a lot fewer monthly sales to reach my $600 goal. For example, if I create a nice $100 product, it would only take 6 sales per month to pay for the car.
Since the car payment will be an ongoing thing, it also makes sense to look into recurring payments. As a business, can I make a membership portion to my business where I offer services month-after-month for a recurring monthly fee. For example, if you offer cleaning services, instead of sending invoices each time, can you offer a monthly continuing price that covers an entire month of service? Monthly membership busineses, such as Netflix, have a recurring monthly fee which provides a steady monthly income.
Give it some thought,
To Your Success,