If you has the recipe for a million dollars, would you actually cook it up? Would you take the time to follow the recipe to a tee in order to make that million? Well, according to Scott Oldford, author of 6 Pillars to 7 figures blog, gives us an easy to follow recipe. He breaks into simple to follow numbers:
“If your goal is $1 million in revenue…
And your sales price is $10,000…
Then you need to generate 100 total sales to reach $1 million in revenue (100 x $10,000 = $1 million.)
The amount of appointments you need to generate depends on the percentage of appointments you close as sales.
So assuming you close 20% of all the prospects that you speak with, you’d need to book 500 calls (500 / 20% = 100 Sales [@ $10,000 revenue per sale] = $1 million in revenue.”
In recent years, it’s become evident to me that knowing the recipe for a million dollar business is necessary, in order to get there.
How is it, that so many entrepreneurs start a business and skip the very formula they need to reach their goals? I am guilty of such ignorance. When I first opened my coffee shop in 2004, I had no formula, none, that guaranteed my business would make money, much less a million bucks! I think it’s fairly easy for us to jump into a small business which was fueled by our passion and go into it foolishly thinking our idea would work it’s way out because, well damn it, it’s a good one!
In my mid-twenties I had no idea that a coffee shop which was once a dream of dream of mine would teach me the most valuable lessons about business.
As someone who has a love-hate relationship with numbers (literally I hate math, yet love making money), I now understand how numbers work for me or against me!
Before you begin your small business, know the truth about what it will take to make money beyond keeping the lights on.