How to get out of overwhelm and into profit for somapreneurs
Are you overwhelmed by managing too many service offers? This week’s video takes you through a brief process to clarify which services or products to focus on for maximum profit.
The goal of this process is to identify exactly what brings you the highest hourly rate, which is not necessarily what you charge your client.
Create this low tech chart for tracking income streams:
This chart (you can see it laid out in the video, but it’s really simple!) identifies what the best hourly rates are for each service, which is where you should direct an equivalent amount of business development effort.
You will need three simple bits of data:
- Each separate service/income stream.
- Total income from the time period you have data for, preferable 6 months to 1 year.
- Hours worked monthly for each service listed (not including admin and marketing hours you do behind the scenes).
Here is what to do with the data:
- List each service on the left side of chart
- Column 1: Calculate average monthly income per service based on actual data
- Column 2: Divide income by hours spent actually providing that service per month.
Chart makes visible return on investment of time for:
- Group versus individual offerings
- High priced 1:1 work
- Ongoing subscription/ongoing commitment offers
The chart also shows differences in hourly rates across service types, including those which are stable and those which fluctuate.
Services that fluctuate more widely will earn less hourly over time. Higher priced services are often less predictable and more subject to unexpected cancellations!
Stability offsets high priced services that fluctuate wildly; this becomes clearer when you have data for 6 months to 1 year available.
Stability or reliability of income is also part of ROI.
Managing expectations and using data: key points to remember
- Real conditions can differ from hypotheticals; aspiration has its place in business planning! If the data shows you something you want to change, give it a try and see how it works.
- Regardless, the chart will still point you to the highest earning potential.
- Adjust admin and marketing efforts accordingly.
- If the data makes you sad or confused – consult with colleagues!
Put any comments or questions below, or in the YouTube comments section. I answer every one.
Be sure to get peer to peer or mentor support regularly in your business. We all want one another to succeed.