Fitness Business School – Virtual Business Coaching – Revenue Production

Full Transcript

Hey, Pat Rigsby here. And in this episode, we’re gonna keep going with the series of how I would coach you if I were your business coach, and we’re gonna be talking about the production of revenue and kinda weave in some stuff about personal income as well during this episode. So we’ve got a lot to cover. I’m excited to get started.

Welcome to The Fitness Business School podcast – the show for fitness business owners who want to grow their income, increase their impact and improve their lifestyle. Be sure to listen til the end of this episode, because we have a brand new special offer exclusive for listeners. So stay tuned.

So as we continue on with the, this kind of series of what I would do, if I were your business coach, and we’re kind of casting a wide net, obviously because every business is a little bit different. There there’s some stuff when it comes to revenue that, that I see come up very commonly for people will say, well, I want to have you know, a, a business that does $25,000 a month, but they don’t even know how many clients that amounts to, they don’t know how many clients they need to go from where they are to where they wanna be. So the first thing that we’d probably look at is, is, you know, identifying what your revenue per client is, and then figuring out how many additional clients we need to close that gap now. Yeah, we can amend some things and say, okay, well maybe your average revenue for client per, per client currently is $150, but we need to get that number up to 1 75 for new clients.

But the premise remains the same. We need a tangible number to work with. We need to know what the roadmap to getting to that revenue number looks like. And it, and it’s astounding like people, the don’t don’t really think of it this way, but you know, if you know that, Hey, I need 50 more people paying X number of dollars per month to get to where I’m going. Now we can start to engineer a plan to get there. Now, once you have this number of sales, you need per month to get to where you’re going an easy kind of way to, to think about reverse engineering it to start. And you’re gonna be able to craft your own numbers and know your own rates of conversion at each level. But an easy one is to to think, Hey, I’m gonna need two guests or consultations or success sessions per new client. And to get those two guests or consultations or success sessions, I’m probably gonna have to schedule three to get people, to actually show up for two. And you know, Hey, I need three scheduled for every new client, then, then we’ve kind of got our our, our marching orders, right? We know that if we need five new clients per month, then we need 15 scheduled consultations per month. And our jobs to go make that happen each and every week, you know, we need four, four this week. Well, what are we gonna do to get those four? It starts to make everything much, much simpler, much more straightforward when you have these basic number is to work from. And then the more data you collect, the more information you have, you can become more more precise with this formula of, you know, Hey, we need 2.5 to get to one or something like that. And you can look at ways to improve the numbers as well. You can improve your closing percentage.

You can find higher quality lead sources. Now, when you are doing these consultations, don’t underestimate the amount of time you’re gonna need. Give yourself 45 to 60 minutes. I don’t care if you’re doing online or offline. Give yourself enough time to, you know, to, to really dig in, ask questions, build a relationship, build value, close a sale and, and not feel rushed, right? Like there are very few things in our businesses that are going to have more value per hour than sitting down with somebody and moving them from prospect to client. So now if you’re selling a subscription type of service, you know, via sales page, man, if you get a, a 1% conversion rate to, to a subscription, you’re probably doing fine. And so that’s why you’ll see, you know, you’ll see people talk about, Hey, it’s, it’s more prudent to get people on a phone call. We’re not just trying to sell with a sales page. We’re not just trying to let people kind of decide based on this one size fits all generic path. I mean, and most of us are not so, so lead generation focused that we’re gonna see, you know, see the path to our ideal business as just being one of flooding a, a page with lead after lead. It, it’s just gonna be a quicker path for most of us to get to a meaningful amount of revenue to, to just prioritize every lead as, as much as we can and get them into a consultative selling environment. I would tell you a good rule of thumb that I, that I kind of suggest to my clients is if you’re not making a sale for more than two consecutive days, you need to probably put the way you’re spending your time under the microscope. You need to review your sales process or make more offers, but make sure that you are prioritizing new business because as the owner that falls you you know, you’re the one who’s responsible for quote unquote, ringing the cash register.

Now, one thing that I see a lot of people come into our coaching environment and, and not necessarily do well is the a price for reasons other than profitability, if you’re gonna offer something, you need to make sure it’s profitable, don’t base your prices on competition. Don’t try to undercut, make sure that whatever you’re gonna sell is profitable. And if you were to get to the amount of work that you’re interested in doing, then the corresponding amount of revenue associated with that, I is one that’s gonna satisfy you for the effort you put in. I mean, I see people say, well, Hey, I’m just gonna get, you know, get some traction. I’m gonna charge $30 an hour for one-on-one sessions. And you know, they look up and they’re like, man, I’m running myself a and I’m not making a whole lot of money. And you know, that that starts with pricing. If it, if you are not profitable, then you know, the further you go along in your business, the happier you’re gonna be like, if you are not pricing for profitability.

Now, another thing that I talk with clients about. So I’ll share with you in the, I mean, since I’m gonna coach you as a client now, and, and this is something that I’ve never heard anybody else say, but it seems very straightforward to me is a small business owner for a service business. Basically we have the potential to be paid in three different ways. We are paid as the coach or the technician. So we’re actually providing the session we’re pro we’re paid as the manager or salesperson. Know, so we’re not paying somebody else outta sales commission. We’re not paying them to be the general manager for the business, whatever else. And then we get, you know, our profit or distributions as the owner. Now, if you want to personally earn more, the easiest path is to play all three of those roles. If you want to delegate some or all of, one of those roles, you need to make up for, for that amount of money, that you’re gonna pay somebody else with volume, right?

Like, so if you’re going to hand off some of your clients without wanting to personally take a pay cut, then you’re gonna have to generate more clients for the business, right? Because originally you were keeping all of it. Now you’re only keeping part of it. So you need more volume. And this, this is very simple and straightforward, but you, you would be floored by the number of who start to back themselves, out of the training roles, where they probably were making the bulk of their personal income, and they wonder why the math isn’t working. They wonder why they’re not being able to make as much money because, you know, they, they aren’t generating the type of volume to, to fill all the buckets that they know now have to fill financially. And then, you know, the, the, the last couple things I’ll tell you about revenue, some simple, simple things to kind of dive into one would be review your expenses monthly and cut the things that, that aren’t valuable to you, not being you. You, you’re not gonna cut your way to being wealthy. Like you’re gonna have to grow. And you you’re gonna have to, to, to sell and expand.

You basically have to play offense if you’re gonna be wealthy, but know that it’s also very easy to have expense creep. The more money that you may, the more money you spend, and then you’re not creating much of a spread between expenses and revenue and your profit doesn’t increase. And then finally raise rates with some regularity every 12 to 24 months. And if you don’t, you know, you’re, you’re probably gonna be backing yourself into a corner, right? Because your expenses are invariably gonna go up. Things cost more over time. If you have employees, they’re gonna cost more over time. If you are not at least matching that increase with the increase in rates, then you are the one losing on that spread. You’re the one profiting less for having a, a more mature business, which doesn’t make any sense, right? So those are some, some things that we would work through from a revenue standpoint. Now, obviously as with all of these kind of coaching sessions, if you will, you know, there are things that we would need to do to customize, to fit you. There are tools and spreadsheets we use to, to potentially wrap our head around the, the projections and, and how this works, but hopefully some of these thoughts and some of this way of operating is already pretty useful to you. And, and you can go apply as I, your business coach. So that’s what we do. If we want to generate more revenue or keep more personal income.

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