As a Service Professional (for example a Graphic Designer, Dentist, Lawyer, Accountant etc) you can’t just rely on one income stream. You need to have multiple income streams coming into your business – but of course not so many that you are feeling like you are juggling too many balls!
As a business owner what is your income target that you have set yourself for 2016? You can further break this target down in to your target per quarter, and even to per week; depending on nature of your services (for instance, are they one-off projects or do you have clients on a monthly retainer?).
Once you have given consideration to you income target for the year you then need to project how you are going to make that target – what type of services will you offer, is that level of service provision sustainable or will it require you to get a contractor or employee, do you need to productise some of your services, do you need to add on additional services?
Any changes or additions you do with your services have to in line with what your clients are wanting, For example if your clients are very busy and don’t have time to come to workshops then perhaps creating a webinar series would be more beneficial for them and ultimately more profitable for you because it is want clients want.
The example below is for a Service Professional who has set an income target of $100K for the calendar year. You could use a similar table to set out your own income generation strategy for the services and products/info-products you will be selling.
EXAMPLE for an Income Target of $100K
Use NET per product/service
|INCOME SOURCES||PER ANNUM||PARTICIPANTS||AVERAGE PRICE||TOTAL|
|Info-Products $100 to $250||50||$150||$7500|
|Workshops half day (3 hours) $100 to $150||4||20||$120||$9600|
|Workshops full day (5 hours) $150 to $250||2||15||$200||$6000|
|Do It Yourself Kits/Client templates etc that they can use to complete service
$250 to $500
|Conference/Retreats 2 days $500 to $1000||1||10||$700||$7000|
|One to One Coaching Clients (core service)
$500 to $1500
|Ecourses $1000 to $1500||1||25||$1200||$30000|
|Membership Site/Members Club, annual fee $120||50||$120||$6000|
|Online Mastermind Group, annual fee $250||2 groups||6 members in each||$250||$3000|
|Networking Product or Affiliate Product or Commission Product||$250 per month||$3000|
The advantage of creating income targets is that you can then align your marketing and sales strategies to the particular services and products that are in your income strategy. For example, for workshops and webinars, a 6 week lead in time is recommended in terms of promotion. Thus once you determine how many workshops you are going to have, you can set the calendar dates and count back 6 weeks on the calendar to the start of the marketing campaign.
Even though we are about to head into the third month of the year (eeekssss didn’t we just do Christmas?) it is not too late to start on your income generation strategy. If you would like assistance with your bookkeeping to keep you on track with your income targets, then call us today. We love showing clients the benefits of using XERO as a tool for the financial management of their business.