Dream Life Business Formula

Most solopreneurs set out with a dream to change the world and create a business that will achieve an amazing life for themselves… but unfortunately, the two never seem to come together without a lot of long hours, struggle, and frustration… and for most, it never happens at all.

Instead, most solopreneurs are taking what’s “left over” as income from their business revenue… not actually creating a business to give them the income they want.

You can be the most impactful person to your customers and clients but unless you also know how to run a business, which 99% of solopreneurs don’t, then business growth is just a wish and getting the life you want is almost impossible.

I get it, business is super boring to most creative, purpose-driven solopreneurs but running a ‘solopreneur’ business is very different to running a brick-and-mortar business and the possibility of huge growth and creating that dream life is so much higher as well.

That’s why it’s up to you to put your Kick-Ass CEO hat on and follow what I call the ‘Dream Life Business Formula‘ where you start reverse engineering your business to give you the income and lifestyle you want.

I really want you to understand this because it will completely change your business:
To grow your business, you have to set Revenue Targets and then create a strategic plan to reach those targets.

To grow your business, you have to set Revenue Targets and then create a strategic plan to reach those targets.

I know it sounds ridiculously simple but ‘Grow my Business’ is NOT a destination and you can’t create a strategic plan for an unknown destination. That’s why you end up doing a whole lot of EVERYTHING that doesn’t end up working.

Would you jump in the car knowing you wanted to go to a beautiful getaway and just drive with the intention of finding a ‘beautiful getaway’? You could fluke it in a few hours OR you could drive for days and days and never find anything.

What you WOULD do is find out where you wanted to go, research where you want to stay that is within your price range, look at the local activities you might like to do when you’re there and also, most importantly, look at the map and directions on how to get there!

Your business which is significantly more important than a holiday needs the same amount of planning and attention if you want to end up at a destination you enjoy.

That’s where the ‘Dream Life Business Formula‘, that I use with my clients, comes in.

Firstly, you start by turning your dream life into a number and then reverse engineer your business revenue targets to pay you the income you want and create a plan to meet those revenue targets. Obviously, if you have a BIG dream life you are manifesting, then you need to set incremental goals on the way to the BIG dream life.

These are the exact steps that I use with my clients to help them create a business that they LOVE working in and gives them the lifestyle and income they want.

STEP 1 – DREAM INCOME

Work out what you would like to be taking as your monthly income from your business in 12 months.

Make sure it covers your current expenses and then some. What are the additional things you would love to add to your lifestyle to upgrade it? New car, holidays, new house, more clothes, a business coach, beautiful restaurants regularly… figure out what it is, cost it out and come up with your 12-month income goal.

STEP 2 – BUSINESS BREAKDOWN

One of the biggest breakthroughs I have had is around money management. I have managed tight 6 figure to multi-million dollar production budgets in tv and film for over 15 years and I have a lot of skill in this area but the solopreneur game is completely different. In a Production Budget, even though I have so many more moving parts, it’s a fixed amount of money and you have to make the tv series or film within that, there’s no extra as it is all pre-funded.

BUT in our world, revenue fluctuates and it can be really hard to determine how much money you should be taking as income, when you should invest in growth, when you should pull back expenses… you know those ENDLESS money questions!!!!

So when I read ‘Profit First’, it totally changed the game for me. Whilst I don’t necessarily follow the system 100%, I use it with my Kick-Ass CEO hat on so I can make the most important decisions:

1 – How to guarantee the income from my business

2 – Spending Decisions – When to pull back Expenses and when I have money to grow

If you want to dive into ‘Profit First’ there’s a link at the end of this post (don’t get Shiny Object mode and flit away right now as I am going to show you HOW to use it in the most powerful way first)

The Model is to break Revenue down into percentages. Obviously, your business model will determine your percentages but this is a good guide for MOST solopreneur online businesses (unless you sell physical products and have COGS etc.)

REVENUE BREAKDOWN:

OWNER’S INCOME: 50%
PROFIT: 5%
EXPENSES: 30%
TAX: 15%
TOTAL: 100%

STEP 3 – REVENUE TARGET

Now you can work out what your revenue target is.

The Formula is:
Monthly Income Target x Owner’s Income Percentage as a decimal = Revenue Target

Let me show you this in action…
Monthly Income Target = the amount of income you want to take from the business each month ie. the amount you figured out in Step 1 (don’t include tax – it’s already calculated in the Tax Item)

Owner’s Income Percentage as a decimal = 50/100 = 0.5
(that’s the 50% that we allocated in the ‘Owner’s Income’ line under Revenue Breakdown divided by 100)

So if you wanted to take home $25,000 per month as Income:

Monthly Income Target: $25,000
Owner’s Income Breakdown Percentage (above) – 50%

Calculation: $25,000 x 0.50 = $50,000

Revenue Target is $50,000 per month

Now you have a revenue target that actually MEANS something to you AND your life and you know EXACTLY how much you should be spending on expenses, tax and guarantee you are taking income every month!

STEP 4 – GROWTH RATE

Now it’s time to work out the growth rate you need every month to take you from your current monthly income to your Yearly Target.

Growth doesn’t happen in a linear line, it mostly happens exponentially and that just means that it uses momentum and the growth helps more growth.

Instead of just breaking down the gap into 12 equal monthly target amounts, we figure out how much we need to grow every month in an achievable way to ensure our target is made.

If you currently make $5,000 per month and want to get to $50,000 per month, most people would look at the difference of $45,000 and divide it by 12 and say I need to add $3,750 in Revenue every month.

BUT how do you go from $5,000 to $8,870 in 1 month? And then keep doing that consistently? It’s a BIG ask and not achieving the first month will put you WAY behind and mean your $50,000 target will slip away month after month.

Instead we work out what growth rate you need each month.

In this case we need: 23.28%

Now I guess you want me to explain how to calculate a Growth Rate… bottom line is it’s so frickin’ complicated it’s for maths geeks only (I’m a semi maths geek and it spins my head around). If you want to figure your Growth Rate out then sign up for the ‘Growth Rate Calculator and Revenue Target Calculator’… all you need to do is add in your main details and the calculator will do all the work for you… including the next step as well… you’re welcome!



 

STEP 5 – SET MONTHLY TARGETS

Now we know the Growth Rate we can work out our ACHIEVABLE monthly targets:

So to continue with the example we have been using, the monthly targets using the growth rate of 23.28% are:

Month 1 – $5,000
Month 2 -$ 6,164 ($5,000 + (0.2328 x $5,000))
Month 3 – $7,600 ($6,164 + (0.2328 x $6,164))
Month 4 – $9,369 ($7,600 + (0.2328 x$7,600))
Month 5 – $11,551 ($9,369 + (0.2328 x $9,369))
And so on…

How much easier is a 23.28% increase of $1,164 in the first month than a 75% increase of $3,750?

STEP 6 – CREATE AN ACTION PLAN TO REACH TARGETS

Now you know your targets, you look at your current products and sales figures and work out how many more additional Sales you have to make of your Program/s / Services to reach these new targets.

Then look at:

  • How big your list needs to be if you convert at 1% monthly
  • How can you optimize your lead and sales pages
  • Do you need a Funnel to optimize Sales and also backend Sales
  • Do you need to add any backend programs?

This is where you plug in all of the marketing strategies you already use and most importantly look at what’s working and what’s NOT working.

Eliminate anything that is taking up time and resources and spend it on the things that ARE working… that’s the first BIG step to growth.

THE KEY:

Make sure you look at the numbers… that’s the KEY.

STOP with hope marketing and start looking at what needs to be done to reach your targets.

For example:
If you mainly make Sales from your email list and convert at 1% a month on average then work out how much you need to grow your list by to reach your Revenue Target.

If you sell a $297 program 100% through your email list then you need:

  • List Size Month 2 – 2,075 subscribers
  • List Size Month 6 – 4,795 subscribers
  • List Size Month 12 – 16,835 subscribers

You can look at these numbers and either work solely on growing your list and if your current list building strategies won’t support this growth then you know you need to add another channel.

It becomes EXTREMELY clear about what you need to do and helps you define what strategies you need to use.

YOUR TURN!

So now it’s your turn to put on your Kick-Ass CEO hat and work out your own Revenue Targets so you can work out EXACTLY what needs to be done in your business to hit them and actually reach your goals.

Whilst it’s important to know how all of these are calculated I have created spreadsheets for my clients so we work all of their key numbers out and input them and the spreadsheet does the rest… amen to that!

To get the ‘Growth Rate Calculator and Monthly Revenue Target Spreadsheet’ that we use >>


 

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Dream Life Business Formula >> Create a business that REALLY supports your dream and get the FREE Business Growth Calculators - Grow Your Business, Marketing Strategy, Tech Tools For Business, Business Finance Tips, Create Digital Products, Entrepreneur + Business, business tips, online business, entrepreneur tips, solopreneur, girlboss, ladyboss</div

Dream Life Business Formula >> Create a business that REALLY supports your dream and get the FREE Business Growth Calculators - Grow Your Business, Marketing Strategy, Tech Tools For Business, Business Finance Tips, Create Digital Products, Entrepreneur + Business, business tips, online business, entrepreneur tips, solopreneur, girlboss, ladyboss</div

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Grow Your Business, Marketing Strategy, Tech Tools For Business, Business Finance Tips, Create Digital Products, Entrepreneur + Business, business tips, online business, entrepreneur tips, solopreneur, girlboss, ladyboss,

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