Real Example – How to create a $20k/mo. income

Follow along step by step as I show you with a real example how to Hit Your Business Growth Goals Every Time!

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Revenue Growth Action Plan

Did You hit your business ​& Income goals last Year?

If you did bravo!

I know for many years I would fail at it consistently and I work with clients all over the world who do as well.

The great news?

There's a process to do something about this and start hitting your goals predictably or at least get much closer.

I'm going to show you step by step how to reach your financial goals this year if you're willing to follow along.

​The question is what are your income goals?

​Are those goals ​worth committing to putting in the work​ to you?

What difference would it make in your life to earn as much​ as much profit as you're targeting?

You know how it's been... Year after year, setting some goal filled with high hopes and ​then the next year comes and the same goal is there over again.

You know what? It's frustrating and disappointing and humiliating to the point where some people tell me they don't set goals since they won't hit them anyway.

What a sad way to live. What are we here for if not to aim for something amazing in our lives?

But it's not enough just to aim high, life is here to be lived!

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It’s not enough to aim high, life is here to be lived so let’s achieve it!

So, why do we fail and what can we do to actually live the life we dream of?

If you ask people why they fail they’ll list some common answers:

  • Didn’t act
  • Got distracted
  • Don’t know how
  • Lack of self confidence
  • Etc.

We’ve got a principle at Richucation the answer usually lies “a level deeper”. ALL of the value is in depth and by going a level deeper we start to get answers.

In other words, I know you didn’t act my question is “why didn’t you act and what can you do about it?”

A few years ago, I started to crack the code and not only become much more successful but also help others do the same.

There’s a process I’m going to teach you. I’m going to expose to you the obstacles that get in the way and what to do about them.

What it’s going to give you is more than just a blueprint to hit your goals it’s going to give you a system of thinking you can apply to magnify success in all areas of your life.

It started from a year end review. Each year I’d review my goals and progress from the previous year to see how I did and what I could do better aiming to be really honest with myself and then set the next year goals.

My initial step was to go from setting goals to making a plan.

Did you know research shows if you simply think of an action item you’ll take towards a goal you are 56% more likely to act?

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Research shows you’re 56% more likely to act if you’ve thought of an action step towards the goal.

This wasn’t a magic bullet though and I didn’t hit the goals though I made slightly more progress.

The real progress came when I started to consider what got in the way.

I didn’t act - why not?

I got distracted - how come?

I tried affirmations for a while, vision boards and all that other nonsense... it doesn’t work. 

More importantly, let me ask you this. Have you ever had something you wanted with a burning desire and you actually achieved it?

Did you have to affirm to yourself each day that you were doing it or create a vision board?

Of course not!

The desire was deep inside of you. If you need a vision board or something like it to remind you of your goals they probably aren’t very real goals for you.

So, start by getting honest about what you actually want. 

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Start by getting honest about what you actually want.

For example, for me I learned I didn’t actually care to be a billionaire. This might sound obvious or vain or something, but about ten years ago this was an ego goal for me and year after year I failed at it while achieving other things.

Now, I’m not going to tell you some nonsense about, “if the why is strong enough you’ll figure out how” and, “you’ve got to get clear on your why”.

I’ve been around a lot of seminars and books and courses on this stuff and I’ve NEVER seen that stuff actually work. People go through these processes to uncover their why and end up in the same place they did the previous year.

Then again there are simple things where they don’t have a burning why that they do accomplish.

Think about it, every year you do dozens of things and you accomplish a lot without vision boards, without some fancy why process, etc. And yet tons of things you tried to apply these fluffy techniques to, didn’t materialize. What gives?

I realized there are two types of goals and we achieve them in completely different manners. The first type, most people have a pretty easy time with, it’s the second where we get stuck.

Type 1 Goals – Essentially To-Dos

The first type of goal is where you’ve already got everything you need in order to get it done you just have to do it.

These are relatively straight forward you make a list you commit a bit of time and you do it.

For me these were things like hiking up a mountain near where I lived or getting a new computer.

Chances are you don’t need help with these goals. If you do here’s a simple process:

  1. Make a list of what these things are.
  2. Get someone to do them with you.
  3. Set a time/space/resources to do it so it’s booked and committed.
  4. Go do it.

If you’re struggling chances are it’s a type 2 goal.

Type 2 Goals & the Law of Procession

Type 2 goals are goals where you DON’T have everything you need to accomplish them.

In other words it’s not as simple as “go do it”.

This is why people get stuck on the action piece and this is where I’m going to show you exactly how to hit your financial/business goals and the principle applies to others as well.

Let’s say my goal is to run 100 m in 10 seconds. I probably won’t accomplish it. Why not?

Because it’s not a matter of going and running 100 m. If my goal was, “run 100 m” it would be easy. I go outside, I’d do it, I’d check it off I’d be done.

The problem is I don’t have the physical conditioning or even the knowledge of how to physically condition myself to hit this lofty target.

In other words Type 2 goals are goals where it’s not a direct A to B relationship you’ve got to do A to B to C to D to E to F or any number of other steps.

Here’s the key…you often don’t know what B, C, D, etc. are.

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One of the top reasons people get stuck is they don’t know what to do or how to do it.

People let not knowing stop them rather than programming themselves to get curious and find out how.

Anything is possible if you break it into small enough pieces

The solution is to figure out how to break it into small pieces each of which can become a simple to-do style Type 1 goal.

In other words, you want to achieve your big complex goals? Simple, figure out the small doable next step and make it your new goal.

Don’t worry I’m going to show you how to do this for any financial goal.

There’s two other reasons you’ll run into obstacles to hitting your goals and we’re going to cover them in a moment as well.

First, let’s dive into the Financial Goal Achievement Framework showing you exactly how to get from where you are to $20,000/mo. or whatever other target you’ve got (the principle is the same for $100k/mo or $1 million/mo).

The Framework of EVERY Financial Goal

If you haven’t done so already now would be a great time to download the Free Worksheet we’ve created for you so you can follow along with your own goals here:

Revenue Growth Action Plan

There’s a basic formula to achieving any financial goal we’re going to use to take your complex goal and turn it into simple to do action steps.

The basic thing to start by realizing is all bigger financial goals are made of individual transactions.

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A transaction is any case where you do something for someone in exchange for money.

This might be providing a consulting session, doing a plumbing job, selling them a phone or clothing, etc.

Each transaction has a certain value associated with it. For a simple example I'm going to use the numbers of a client we went through recently on a $20k/mo. goal.

In his case he’s got a small business helping gyms and personal trainers and he put them into a program he runs where they pay him $500/mo.

Action Step -  For yourself figure out what your average dollar transaction is

This might be the value of a customer per month if they engage with you on an ongoing basis or it might literally be the average amount someone spends with you when they visit your store or website, etc.

Take your total goal and divide by whatever this number is. For example, in our client’s case the number is $20,000 divide by $500 = 40 transactions required to hit his target goal.

In other words, your new goal isn’t to make $20,000 it’s to do 40 transactions…much more actionable but we’re still not there yet because the question is, “how do you do these transactions?”

If you’d like to learn some ways to charge more and otherwise raise your average dollar transaction so you don’t need to do so many transactions click here.

The next question is what is your conversion rate on your sales activity to successfully get one transaction?

This might sound like gibberish so let’s make it clear. Say people call you to inquire about working with you. What percentage of those who call (or meet with you, or walk into your store, or visit your website or attend your seminar, etc.) actually buy?

For example, in the case of this client if he did calls with 5 people 1 of them on average would become a client.

This is a number you’ll need to measure in your own business. If you aren’t measuring right now you should be but for now you can guess. Be aware your guess is almost always optimistic so I’d suggest cutting whatever you guess it is at least in half.

Action Step – measure and record your sales conversion rate

If you’d like to improve your sales activities so you get a higher conversion rate and don’t need to do as much sales click here.

Take your number of transactions and divide it by your conversion rate this will tell you how many sales activities (again a sales activity might be number of people who call inquiring about your service, visitors to your website, sales appointments you do) you need to do to hit your goal.

We call each of these people you’re interacting with for a sales process “leads” or “prospects”.

Not only does this tell you how much sales activity you need to do it also tells you how many leads you need to get through the process we call “lead generation”. Lead generation is also sometimes called “prospecting”.

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Lead generation is just a fancy term for getting someone to express interest in your product or service.

In the case of our client 40 transactions divided by an approximately 20% conversion rate (1 in 5) equals 200 leads he needs to have sales conversations with.

His new goal is therefore to have 200 sales conversations with prospects. It doesn’t end here though because in his case this is where he would really get stuck.

How do you get those 200 leads?

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You get leads by distributing a message to an audience

Once again, you’ll have a certain % of the people who receive the message who will actually be interested in what you have to offer so we need to figure out what that % is and work backward to determine the audience size.

Action Step – measure your lead conversion % and record it

Once again your conversion rate is probably lower than you think it is and this is ok, the idea is to get accurate numbers to figure out what’s needed to hit your goals.

If you’d like to learn how to improve your lead generation so a higher % of your audience become interested in your product or service click here.

This lead conversion % will tell you how many people you need to distribute your message to, we call this your list size.

In other words to get x number of leads, which with the right sales activity will result in a certain number of transactions you need to distribute your message to a certain number of people.

Action Step – record the number of people you need to distribute your message to (list size)

Very often the gap we see in working with clients is they aren't distributing their message to enough NEW people.

If you’d like to learn how to get a HUGE list of TARGETED prospects so you can generate a flood of interested buyers click here.

This is the final piece of figuring out the overall actions.

You should now have the following numbers:

  • Goal expressed in dollars per period (usually month or year)
  • # of transactions required for the goal
  • # of leads necessary for this number of transactions
  • # of people on the distribution list necessary to get this number of leads

We’ll now get into the real meat of making this happen.

Gap Analysis of the Framework

The above exercise was hopefully pretty easy for you if you’ve got questions please send us an email and ask your question.

On it’s own the high level plan isn’t enough though. We need to dive into specifics to figure out where you might get stuck and build around it.

The first common gap is skills.

Note the difference between skills and knowledge, between knowing what (like you’ve read about it) and knowing how (having actually done it).

There is no more important skill than learning to learn and since you need to learn to predictably change your life you benefit a lot from learning to learn better and faster.

If you’d like to learn to learn much faster and easier click here.

Do you know how to fulfill on those transactions? We’ll get more into how this becomes complex as you grow and what to do about it.  If you'd like to find ways to increase what each customer is worth so you need less transactions click here.

Do you know how to successfully complete the sales activity? If you could use improvement on how to communicate with prospects to get them to buy click here.

Do you know how to communicate a message to cold prospects to turn them into leads? If you could use improvement in your lead generation communication click here.

Do you know how to identify and build the list of enough people to hit your goals? If you could use help in identifying and building the list of the ideal target customers click here.

If you lack skills in any of these areas you need to identify it so you can make developing one skills one of your new goals to reach the big goal. Good news is you only have to learn once so each time this will get easier.

Action Step – record any areas where you could use improvement in your skills to reach your goal

Next, let’s break down from the bottom up each of the things you’ll need to take action on each step of the process:

  1. Building the list – do you have the list? If not then getting it needs to become one of your new goals – note this comes after learning how to get the list in case this was a gap.
  2. Message & content to communicate to the list – how are you going to communicate with them and what’s going to be communicated how? This might include bullet points of a script, images, documents, written information, recordings, etc. If you don’t have this creating it needs to be one of your new goals – again this comes after learning how to create it if you don’t know how.
  3. Process & content for sales communication – what and how are you going to communicate with prospects during the sales/conversion process? This might be a website, it might be a sales process, it will definitely include an offer and a process of being able to accept their payment. Do you have all these things? If you don’t then these need to be your new goal – as always these come after learning how to do these things in case learning is a gap.

At this stage you should have a list of any of your gaps in materials to reach your goal and also a list of skills gaps.

Let’s dive briefly into how to address those skills gaps because not knowing how to address them could be an issue.

Addressing Skills Gaps

Richucation is largely designed to help you with this so in most areas contacting us is a simple starting point.

Beyond contacting us you should have some action items to address those skills gaps as follows:

  1. Identify someone who has done it successfully, so you can copy and possibly learn from them.
  2. Identify some resource​ (might be a person, book, video, course, article, etc.) to help you learn and overcome this challenge – naturally Google, Youtube & Amazon are great resources here.

​Richucation​ tip – when you don’t know get in the habit of asking people, “who would know?” They might not know but eventually asking enough people will lead you there.

What if you try something and it doesn’t work? Simple, you cycle back to the learning to figure out how to overcome this challenge. Learning should take place through a combination of: asking/copying, trying, thinking about how to do it better in a nice cycle.

Resource Gaps

At this stage you’re getting close to the end (not so hard right), you’ll soon have converted a Type 2 goal you weren’t likely to achieve into a Type 1 goal you can easily achieve.

But first we need to address one more gap that could get in your way.

You’ve now got a list of things to do, which should be prioritized in order as follows:

  1. Things to learn along with action items you can take to start learning them.
  2. Materials to get to fulfill on the list, lead generation, and sales to make it happen along with action items to get them.
  3. Actual transaction, sales, and lead generation activities required to hit the goal.

Note you should be starting at #1 and progressing to #3. Most people skip #1 & #2 and go straight to #3 and get stuck because they can’t achieve what they want to achieve, which is demotivating and they slow down or quit, get distracted and forget about the goal for the next several months maybe till the end of the year.

In order to ensure you actually do these things though we need to make sure you’re able to do so.

If you’ve got the skills why might you not be able to do them?

A lack of resources.

This comes to one of the most important breakthroughs I had in going from simply setting goals to actually achieving them…identifying the price and resolving in advance to pay it.

I’ve often had employees who are shocked and demoralized when something doesn’t work or takes a long time, etc.

I’ve discovered something powerful though. This is only a problem if you don’t expect it. If you go into it in advance with the attitude that, “this will take many long hours spent over several months” or “this is going to cost me $5000 in learning costs” then it’s no big deal when the learning curves and challenges come up.

Similar here.

You need to identify what you’ll need in order to do all these things: the learning, the content & process building, and the actual activities to hit the goal.

The best way I’ve found to do this is to look at each activity and determine where it fits on a per unit basis with what we call in Richucation The 6 Resources.

Briefly, the 6 resources are:

  1. Time
  2. Money
  3. Expertise
  4. Relationships
  5. Reputation
  6. Assets

In this case we can clarify a few points:

First, Time also needs to account for timeframe. What is timeframe? This is the period over which something happens.

  • For example, you might have 40 hours of work to do but this doesn’t mean it will get done in 2 days it will probably take at least 5 days because you only work 8 hours per day. In fact probably with all the other things to do it will take at least 2 weeks. 
  • So you need to account not just for the 40 hours (time) but also the 2 weeks (timeframe) depending on people’s schedules and when things come back.

Second, expertise is always expressed in terms of someone’s time since it takes time to utilize expertise.

Third, assets can include: space, equipment, infrastructure, etc. These also need to be expressed in terms of units of time since you can only occupy space for certain periods of time without interfering with the space others need. Likewise, for equipment and sometimes infrastructure.

The resources are the “price” you’ll pay to hit your goal.

For example, returning to our client and their ability to fulfill on those 40 transactions they require a little under an hour per week per client/transaction so for easy numbers let’s say fulfilling on 40 transactions requires 150 hours per month.

You could also describe this in terms of expertise since it’s not a purely mechanical task.

Next, he needs approximately 1 hour per sales call, which as you recall was 200 calls so this is 200 more hours in a month bringing the total time to 350 hours.

Then the lead generation activity requires spending money on advertising as well as some time spent monitoring the ads.

His small business is relatively simple but for other businesses this could be much more complex. For example, another client provides oilfield services where pumps, fluids, trucks, fuel, hotels, wages, etc. are all required to deliver to clients.

Bottom line, go through your list of activities and for each activity figure out all the resources necessary to complete this volume of activities. If you’re unsure then estimate high. Budget for these in advance in terms of time, money, space, etc. and be willing to pay them, later you’ll be able to optimize by trying to get those numbers down.

  • A note on money – this might include the ability to pay wages, pay for inventory, rent, equipment, supplies, etc.
  • For example, in my one company we imported products from China and we needed to be able to have enough in inventory to sell to customers but also have enough on order for it to arrive by the time inventories ran low. This meant we needed large amounts of cash to cover the inventory between the time of ordering and selling. 
  • Some of our clients have to pay their bills before they get paid by their clients so they need money to cover the cashflow gaps. Be sure you account for these.
    If you’d like to learn about how to raise money click here.

Take the totals and compare to your actual resources available:

  • People
  • Time
  • Space
  • Equipment
  • Infrastructure
  • Relationships
  • Money
  • Etc.

Identify any gaps between what you have and what you’ll need.

In many cases what you’ll see is your goal as you’ve projected it is unreasonable because you don’t have the resources to deliver on the goal in terms of time, etc. This is actually GREAT news because you’ve identified the gap and now can work around it.

How do you deal with resource gaps?

The same way you deal with expertise gaps. Addressing them become your new goal, which you record as action items within your plan.

What are the action items?

Resource gaps are pretty much always addressed in three ways:

  1. Develop better expertise so you require less resources
  2. Develop and reach out to relationships to help you address these – this might include employees, partners, investors, financiers, friends, and community
  3. Start small and accumulate resources you can use to buy more resources so you gradually build up what you need – this will take longer and you might not hit your goal but at least you’ve got clarity in how to get there

That’s it now you’re ready for the final step in making this all come together.

Schedule of Action

If you’ve followed along properly you should now have a list of action items with associated resources attached to each of them including actions to develop expertise and to overcome any resource gaps, which of course also take resources.

These actions are essentially to-dos or Type 1 Goals.

Using this information your task is now to go through and schedule these activities. At Richucation we say, “what gets scheduled gets done” so pull out your calendar and start blocking off when resources are assigned.

This might include the calendar for your staff members as you delegate to them (hopefully you scheduled time for management if this is the case as it’s very important, or recruiting if you need to add people to your team to hit your goals).

If you’d like specific proven strategies to find and recruit the best people to your team click here.

Finally, make sure you schedule reviews into this process and resolve to pay the price (time) to review and correct.

Leverage relationships to work with you on this and hold you accountable. Set consequences for yourself to that person if you don’t follow through to keep yourself on task and reward yourself when you do well.

That’s it!

You’ve now gone from a goal to a plan.

You’ve overcome the challenges of not knowing so you don’t get stuck.

You’ve accepted in advance what it will cost and resolved to pay the price along with figuring out what you’ve got, what you need and the actions to get it.

You’ve scheduled the actual activities to get them done.

Now it’s up to you.

If you haven’t done so already I encourage you to download our free worksheet to go through this process on your own either by printing it or on your computer. Not only can you fill it out it includes instructions to help you.

If you enjoyed this article please share it with your friends and people you know who would benefit on Facebook, by email, etc.

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