Almost three years ago, I was making in the mid five figures running my online resale boutique and with the start my consulting company. Truthfully, I was doing pretty well without doing major marketing or advertising. Now, was I happy about my income level? No, not really. Honestly, who wants to stay at the same low financial level. We all want to grow and stretch our business to the next level. My goal is to have a million dollar company by the age of 31. This is the same age Bill Gates became a millionaire. Let me break down how I grew my company to a six figure business.
Imperfect Concepts’ resale boutique was bringing in profit, but it wasn’t bringing in six figures. It also was no longer a passion. It was stressing me out. Customers were annoying me. The postal system lost packages. I was completely over it. If a certain aspect or your whole business is draining and doesn’t bring you happiness, it’s time to let it go. You need to first, do something that truly makes you happy. I am not saying I wasn’t happy doing what I loved, but it was no longer a passion of mine. It felt more like a chore that profited me a hefty paycheck.
Set A Goal & Make A Plan
This is the most important thing you have to do in this guide when scaling your business to make six figures. You have to set a sales number you want to reach, and then break it down as to why you want to achieve it. My first year goal was to make $120K. I literally broke that down into what I needed to make every month before taxes and fees were taken out. After that, I had to decide why I wanted to make this amount of money. Yes, it’s a business and I want to be fiscally successful but why. My why was that I wanted to have a greater impact on the world. Helping a million women through entrepreneurship. In my opinion, in order to have a greater impact, I would need a bigger stream of income. This would allow me to scale my business and create more products for a variety of individuals. With this money, I could give more back to the community, travel the world, help others launch their business, and so much more. In addition, I want to provide more jobs to people by hiring them through my business. Can’t hire people on a shoe string budget.
Nobody wants to shop products they saw from the previous month. I know I don’t. When I do I expect them to be on sale and so does your audience. You need to constantly be introducing new products or revamping your company’s services. Personally, I advise clients who are product based to have 30-50 items in their store when they launch. After that, they need to be adding 5 to 10 products on either the 1st or 15th of the month. It is wiser to add products on both times. This way you’re constantly introducing new products around the time your audience gets paid.
If you’re a service based business, you need to be adding passive income to your product stream monthly. Making $10,000 a month in digital sales from products made almost three years ago feels simply superb. I try my best to create a new product once a month for my audience to buy. I start preorders the month before and launch on the first of the next month.
You need tiered pricing in your business. Whether a service company or a product based company, you need levels to your revenue stream. It takes more than a million sales to make a million on a $0.99 cent item. You have to calculate sales tax, profit margin, product cost, and more. Those little $10 products are not going to make you six figures overnight. You need items for every bracket. Think of it this way, you need products that range in these price points:
- $20-$50 price point
- $51-$101 price point
- $100-$200 price point
These price points give you options. If your sales goal is $1,000 a month, then you would need to average 10-20 orders under the $50 category. You would need 10-15 orders in the $100 category. Finally, on average you would need 5-10 orders in the $200 price point.
Big Ticket Items
The biggest ticket item within my business is the tech company consultations. These consultations start off around $1,500 an hour. These items need to hold the most value. Working with me one on one, in very intense sessions, is worth every penny. In addition to that, when clients book these sessions there is a minimum of 6 hours attached to it. It’s not just one single hour transaction. You need to think long-term with all of your big ticket items. Adding a subscription based business would be a great big ticket item that you could sale at a low cost to people.
I truly hope you can make six figures with your business. However, to be honest, if you’re only doing it to make more money, you will always be chasing it and things will not work out. There has to be a purpose in what you’re doing. All business, even for profit businesses, serve a purpose in this world.