Are you feeling unsure of where you need to be focusing your time to reach your revenue goal of $10k revenue a month (or more)? 

Do you have a vague idea of what you would like to be earning each month but haven’t broken it down into an action plan? 

For many of my students inside The Modern Marketing Collective, they’re shooting for that $10k revenue month as their first big revenue goal.

The reason for this number is that they’re looking to replace a salary, that perhaps they’re about to walk away from and quit their job, perhaps they’re on maternity leave and they don’t want to go back to that job that they had before.

I know that when I was in my 20s, I remember thinking “oh my goodness, $100,000 a year – just imagine!”. And that was my goal. I just thought that would be the most amazing thing and that once I reached it, then that would be it.

But of course, so often once we reach our goals we acclimatise to them and a result, we move our goalposts to the next big thing we want to achieve! So no matter what stage you’re at in business, whether you’re looking to make your first $100k, or you’re looking to scale past this, the following process is designed to help you.

You can also listen to this blog post on the podcast below:

1. Know Your Three Key Sales Numbers

Okay, so the first number to look at when we’re really breaking down those numbers behind our revenue goal is that number that we want to make.

So often I see business owners that don’t really have a goal and don’t really have a target. They might say things like “oh well it’s just a hobby” or “I’d just be happy to make any money at all”.

These responses can sometimes come from a fear deep down that it may fail or it may not work and so it feels safer to not own it, and not say what you really want for your business, to save ourselves from the fear of embarrassing ourselves or being judged.

This leads to many of the small business owners I work with not being on top of the data and the things that we really need to know to make informed decisions about where to focus our efforts, our time, and our investments.

If this is you – I can relate. I totally didn’t get this to start out with. I was quite oblivious to my numbers and I poked my head in the sand. I didn’t want to know about it. Money and my business numbers felt very intimidating. I had a belief that I was no good at numbers – but I had to get over that if I wanted to actually grow my business.

Here are the three numbers you need to get clear on:

1. How much do you want to bring into your business (in overall revenue)?
2. What is your average sale value? I.e. how much do your products/services/programs cost? If you have three different key offers, write down the average sale value for each of them.
3. How many of sales of these do you need to make to reach your target?

When we are clear about these numbers, we can move from the vague goals of wanting to grow our business, or wanting more clients, to knowing exactly how many clients or sales we need each month to reach our goals.

If you want to make $10k per month, and your average sale value is $2k, then you need to book five clients each month to generate that revenue.

2. Calculate Your Conversion Rate

To understand your likelihood of converting a customer (your conversion rate), we need to know how many people are actually seeing our offer and how many of those people are purchasing it.

Each business will measure how people are seeing their offer in different ways, depending on how they actually sell their products/services/programs.

Perhaps you track the number of visitors to your sales page, or the number of email addresses you have gathered ahead of launching a new offer, or the number of discovery calls that you have had with people interested in your services.

For example, if you spoke to three people and two of them went ahead and booked, therefore you have 66% conversion rate.

Or if you have a hundred people look at your sales page page and three people went ahead and purchased, your conversion rate would be 3% conversion rate.

Keep in mind that this data is trickier to know when you are starting out, because you simply don’t have a lot of data gathered yet.

This data gives us power, clarity and confidence in our business.

Track your conversion rates as your business grows because you can use this data to make informed decisions in your business and compare different marketing campaigns.

You can always work to improve your conversion rate, such as questioning:

• How can you make your message stronger to help your customer feel more confident in making the purchase decision?
• How can you add more desire or need for your audience to make the decision to go ahead and buy now?
• How can you add some social proof to help them feel more comfortable and confident in making that purchase decision?

3. Know Your Target Number of Leads

The final number is the number of leads you need.

If you’re aiming for $10k revenue per month, your average sales value is $2k and you have spoken to 15 people and 5 people booked (your monthly goal), then your target number of leads to speak with per month is 15.

When we know our lead target, wewe can start actually assessing what we are focusing on and how our business is going.

All of our efforts can move towards our lead goal, because we have confidence that if we meet that number, then it’s going to flow through to help us meet our revenue goal.

When we break our business and the numbers behind our revenue goal in this very simplified form, we start to get a feel of how we track, identify growth opportunities, and areas for improvement.

Our numbers give us clarity and confidence.

What I see in my students when they go through this in more detail in The Modern Marketing Collective is the amount of clarity and purpose and intention that they then have, which allows them to move faster towards actually getting the results that they want in their business.

So I hope that breaking this down has given you more clarity around the numbers behind your $10k revenue month goal and what you need to focus on to achieve it.