A large portion of being the owner of your company is knowing where you are headed as a company . You are the leader of your company, and as the leader, it is essential that you know where you’re leading it to. Many people have some vague goals such as ‘I want to be a million dollar a year company’ or ‘I just want to keep growing’ which can be a good starting point, but without clear and concise goals it can be much more difficult to obtain. There is a huge difference between generic goals like those and something along the lines of ‘I want the company to make X amount a year so that I can take home Y amount to live comfortably and provide for myself and my family’.
One of the biggest mistakes Mike has observed in regards to people setting their goals is envying others and having clear cut goals. He’s spoken to members of cleaning nation who are at $10k a month wanting to hit $20k, and $50k wanting to hit $100k, and even multimillion dollar companies wanting to double their growth, but you should always have deeper reasoning behind your goals than just wanting to make as much as some other company. If you tie your goals to specific things you want in life, it makes it easier to reverse engineer a plan on how to get there from where you currently are. For instance, if you find that you need 80k a month to live the type of lifestyle you want, you can then use that number to see what your business needs to get to, and how many new accounts/employees/etc you need to reach that goal, and from there you can engineer systems to help you reach your goal.
Now we are going to expand more on what it looks like to reach those goals, and how to properly reverse engineer your goal to figure out what systems you need. For this example, we are going to say that you are at $50k a year in profit and you want to be at $100k. We are also going to be using the 20% profit margin that Mike teaches, meaning that to reach that extra $50k in profit, your company needs to be making an extra $250k a year in profit, which roughly translates to $21k in additional revenue a month. After that, you should try to figure out what your average customer is worth. This will vary significantly between residential and commercial. Where a residential customer may be worth $300 or so a month, a commercial cleaner can be one to two thousand dollars of revenue each. Keep in mind that you can also raise the value of your services and in turn customers if you need more value from your customers (This is generally easier for commercial companies). If you would like to hear Mike explain more about this, you can do so at the original video source, which can be found here.
Before the end of this blog, It’s important to hammer home the idea one more time that you should be tying your goals with a lifestyle, rather than choosing a random number like ‘A million dollars’. You need to decide how you want your life to be, and then figure out how much time and money you need to do so. Tying your actions and activities to an outcome rather than a monetary amount is extremely important.
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