Most of my clients come to see me with lofty imagined revenue goals. Great! What does that mean?
Of the 12% of women business owners who bring in over $100,000 in annual revenue, half (6.2%) make over $250,000 and just 1.9% make $1 million or more. Data from National Women’s Business Council:
You dont pay your bills with revenue and you certainly dont build wealth with revenue. Wealth and a comfortable lifestyle are built from net profit. How much money is left after you pay your business expenses and your income taxes. That net number is the one I care most about. That is where wealth is built. I have clients who make $5,000,000 and only net (take home) $150,000 and then I have clients who make $500,000 and yet take home $250,000. Which would you rather be?
As you continue to work towards your goals in 2023, please be mindful of the difference between chasing a revenue goal and chasing a net profit goal.
When I work with clients, we start with the net profit goal. How much money do you want to make and why? Once we have determined that number, then we build your business to support that. Got it? How much revenue, how many expenses will you need in order to get you to your profit goal? That is the real business development and goal setting question.
If you have not done that math and that mindset work then please call me now, before you chase one more revenue dollar. Let’s make sure that the revenue you are aiming for will support your personal goals.
As you can tell, I am so so so passionate about this critical piece of business development and operations. I love to spend one day with my business owners. One day. Out of the office. Focused on what you want and how we will get there. One day and you will be on the path to success. I will turn your frustration into clarity and confidence!