The power of numbers – Many would say businesses are built by concepts, products, services, sales, marketing and the discussion continues. A successful business is built by the power of numbers. You will save yourself a tremendous amount of time, money and effort by beginning with this formula as one of your foundational questions to answer.
Here are a few examples of why the power of numbers is the driving force behind building a successful business…
When you determine to start your business, if one of your goals is to earn one million dollars the first year, you might decide to build one product to sell to one customer for one million dollars. You might design a service to provide to one client or company for one million dollars. If this is the goal, the way the business is designed, the sales method, and the marketing strategy will need to be set up in such a way in order to meet this goal.
The one deal for one million dollars may seem way out of line. Is it really? There are now independent companies providing travel into outer space. Each of these companies is essentially built upon this exact model of setting up their business for success.
Still not convinced? Consider moving along the line of the power of numbers. An example might look like ten clients for one hundred thousand dollars each to build a successful business the first year to earn one million dollars. You might plan instead for one hundred clients where your price point is ten thousand dollars each. Each of these examples represents the power of numbers, as the entire business must be set up in such a way as to achieve these predetermined goals.
For someone in retail, the power of numbers absolutely does apply as well. One million items sold to one million people for one dollar each is still meeting the one million dollar goal mark for the year.
You might think of this as starting with the end in mind. If you determine where you intend to take your business and then come back into the present, it is much easier to determine what the real needs and requirements are in order to achieve the stated goal. It will become much easier to stay on track and to focus on what exactly must be done in order to meet the goal.
Bring the power of numbers to your business. Book an appointment to have Mitch consult with you and your company today. Mitch Tublin – www.easysmallbusinesssolutions.com or call 877-907-8223.
Mitch,
It’s vital to start with the end in mind (something I regularly tell my clients). AND yes, the numbers are a BIG part of that even if you’re not a #”s person (guilty).
Thanks for the reminder.
Write on!~
Lisa Manyon
Lisa,
As we have discussed, work on what you are best at and hire in for the rest.
If someone is not good at numbers they should just hire someone who is to do this work for them in their business.
Like Lisa I’m not a number person …but I agree it’s important. I like that – determine where you intend to take your biz and work back.
Thanks Mitch
Trudy,
It is really not that different from creating a dish from a recipe. Don;t you know before you start what you want to create? This helps you buy the items you need to prepare the item, right?
I like that – starting with the end in mind! 🙂 Great tip, Mitch!
Carmen,
When I am working with a new client in my practice, we always start with the end in mind. You must know where you are trying to go toward in order to know what to do each day.
Working backwards from projections is really the simplest way to realize how big your business is going to be in order to hit your desired numbers. In my experience business owners tend to resist this, I think sometimes because it takes the “wishful thinking” out of their equation. Good points, Mitch.
Sue,
People tend to dream big until they wake up!
It is all about the numbers Mitch and I agree I would rather have 10 $100,000 clients than a lot of little ones!
Heidi,
We all know you did not mean ‘little’ ones. Everyone is important!
There is a place for every business owner to make their place.
One of your initial decisions must be where you will play!
I LOVE numbers! And the principle you’ve shared makes total sense no matter which option someone chooses. One more thought… depending on what industry you’re in, it might be easier to find 10 people at $100K than 1mil. people at $1. (just saying)
Silvia,
Agree with your formula. It is just that what business part that is key.
If you are selling promotional pens, it is $1 per item. If you are selling
gold pens with a signature of a famous person these might be $100k each.
Great post, Mitch!
The math part of the successful business is actually VERY simple — as you point out. I find my clients are absolutely delighted when they realize how simple it truly is to achieve their financial goals — simple math!
Thanks!
Katherine.
Katherine,
Yes, and as with most of the business success steps, it is not too difficult,
it just needs to be done.