You’ve no doubt heard the term “Business Model.” It’s how you structure your business. A bad business model is not capable of growing beyond your ‘time.’ A good business model allows the business to grow beyond your time. That means you need to delegate tasks beyond yourself. Defining a good business model is helpful if you’re worried about not having enough time, or concerned about adding more clients. Done properly, a good structure can grow infinitely without adding more time requirements. For example. If you must be present to deliver the service, you are restricted to time-for-money and this is not a good business model. If you have a group coaching program that requires the same amount of your time whether you have 10 members or 1,000 members, that is a good business model. Additionally, if you do the; bookkeeping, marketing, administration, bill paying, phone answering, legal and other business-related functions. You don’t have a good business model. “I JUST NEED CLIENTS” When I started coaching, I looked for clients, signed them up and moved on. Lather, rinse, repeat just like it says on shampoo bottles. That was my model. What’s yours? The model is your plan, or lack thereof, of how you do things. For business, it’s how your business, products and services, are structured. Perhaps your model is to enroll a client, find another client, enroll them, and continue. Perhaps you don’t care too much about anything else because you need clients now. But you may be missing out on clients, who can’t afford working one-on-one with you, by not offering them a lower-cost group coaching program. And you may have overlooked people wanting to do it all themselves (this is a product). HOW TO STRUCTURE YOUR OFFERINGS From the earlier section, how much do you want to make? Let’s say you want to make $500,000 per year. Great, good for you… what’s that look like? It’s hard to make $500,000 per year if you have no idea how to generate that other than the word ‘more.’ It could look like this:
  • 10 consulting clients at $2,500 per month, or $300,000 per year
  • 50 group coaching clients at $1,000 every 3 months, or $200,000 per year
  • 100 sales per year of DIY program at $497, or $49,700 per year
Total = $549,700 per year. Yes, a little over the goal above, but let’s seek to exceed expectations, shall we? Before we get to your numbers, let’s break it down a little more. The Offline Ratio To get 10 one-on-one consulting clients, assume in-person or over-the-phone sales. A good ratio for this type of work is 10-3-1 For every 10 qualified people you speak to, 3 may be interested and 1 may sign up. Your numbers may vary, you’d need to speak to approximately 100 qualified people to get 10 paying consulting clients. Why look at the numbers? It can seem impersonal and cold to look at the numbers like this, but it’s , but I had to do this when I first started. My mindset would turn negative with each ‘No’ from a prospect. My feelings of inadequacy grew with each ‘no.’ It got so bad that I wanted to hide in my home and not share anything with anyone about what I did, then I wouldn’t feel that rejection. Until it got so bad, I had to do something different. And to do something different, I had to think different. And to think different, I had to learn something different to replace my current limiting beliefs, with another way. That other way is PROCESS. Why? Because what I’ve learned about myself, and the thousands of people I’ve coached, consulted or partnered with over the years… the more emotion involved, the less process involved. The more process is involved, the less emotion is involved, allowing greater results. “There more emotion-driven, the less process-driven. The more process-driven, the less emotion-driven. It’s TOO MUCH negative emotion that gets in the way.” So, the 10-3-1 ratio helps define the process of speaking to people about what you do, and managing your expectations about their response. By being more focused on speaking to 10 qualified people, you’re less focused on what this one person said or did. Now, you’re focused on reviewing the process – and not thinking as much about your adequacy as a human being. Remember, emotion is not bad. Nor are processes. BUT… too much emotion or too much process, are bad things, and get in the way. Click here to boost your speed and accelerate your business.