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Breaking Down The Numbers
Breaking Down The Numbers
Posted By - Cindi Erickson
Category - Growing Your Business

Breaking Down the Numbers

Starting a business begins with an idea and/or a dream.  Having a successful business starts with a plan.  Like Zig Ziglar always said, “People don’t plan to fail, they fail to plan.”  So, what is your plan to start and grow your successful business?

·       First you need to know what you are going to sell. 

·       Then you need to know, in general terms, who your customers are going to be.

·       Thirdly, you need to set goals, benchmarks if you will, so you know where you are starting from and where you want to go.

·       And, lastly, you need to write out a plan of attack, a roadmap, of how you are going to accomplish your goals, including your financial goals.


The best way to increase your chances of hitting your business revenue goals is to “crunch the numbers”, create a strategy, and then commit to the actions that your strategy requires.

In order to create the best strategy possible, you have to get clear on your numbers.

You don’t want to be that entrepreneur who says, “Increasing my income is a high priority”, but you have no real understanding as to where you’re at right now or how you’re going to get to the next level.

So, let’s get some financial clarity on how to get from ‘point A’ (where you are right now in your business) to ‘point B’ (where you want to be in the next 6 months to a year.)

Let’s break down the numbers into an equation:

·        “X” number of buying customers or clients = “X” number of products sold or services booked

·       “X” number of products sold or services booked at a particular price = the amount of revenue income earned

So, let’s look at this in a real-life scenario…

Suppose you are currently making $1,000 a month in your business, but your goal is to consistently bring in $5,000 per month moving forward.

Looking at your current financial breakdown will help you to evaluate what needs to be done to increase the status.

So, what does the equation look like for your current $1,000 per month situation?

·       Do you currently work with four (4) clients each month at $250 each?  

·       Or do you sell two products a month at $500?

If so, here is how your equations would look…

·       4 Social Media Clients = 4 services purchased @ $250 = $1,000 monthly revenue

·       Or 4 Products sold @ $250 = $1,000 monthly revenue

In order to hit a revenue goal of 5K per month, you will need to increase your income to match the following equation…

·       20 Social Media Clients each purchase services @ $250 month = $5,000/month

·       Or 20 products sold @ $250 = $5,000 revenue/month

 Of course, you will fill in this example with your own prices for your individual products or services and the end goal you are working to meet.

And, of course, you can break this down even further into how many services you need to book to get each sale (the 80/20rule applies) or how many products you need to sell each week to reach your goal.  Either way you do it, you need to know your numbers.

I would, also, encourage you to do this with lower ticket products or services as well. If your most expensive package or product is $250, but you also have an offer available at $75 - break down what it will take to hit the same revenue goal with a different price point option and work toward that goal first.

On your way to hitting that income goal, you might get a mix of ideal customers/clients buying from you at different price points. Keep in mind, they all add up, and each sale matters! 


When you know from the beginning what your goal is (e.g. to make $5,000/month) and that you need twenty (20) social media clients who are paying $250 per month or five (5) at $1,000, you
ll be able to keep track of the numbers successfully as they book your services or buy your products, regardless of the price point.

Remember, every dollar plays a part in the big picture, so once youve broken down how many customers or clients you need at a certain price point to hit your income goal, youll be able to create the necessary action steps to finding those ideal customers or clients that will want to pay you for the value they see in you and your products or services.

Once you’ve established your financial goals and know your numbers, the next thing you will need to do is make a marketing plan that helps drive more traffic to your business and a plan to convert that traffic into buying customers.

If n
eed help creating and setting your financial goals and business strategy, feel free to contact me at 727.392.8240!

Here’s to your success, 
Cindi