How to Profit Plan and Maximize Revenue Potential

impact lean out level up retreat loyb podcast profit Nov 02, 2021

Are you ready to maximize your revenue potential? 

The answer to this question is usually 'yes!!' however few entrepreneurs really understand what their maximum revenue potential is for each of their offers or for their business as a whole.

One of the most valuable exercises you can do when you want to scale your business is to understand just how scalable the current offers in your business are.

The results can be surprising! 

What many business owners find is that there is a pretty big gap between the goals they set for both revenue and profit, and the potential revenue they can generate with the way their offers are currently structured.

Or at least there is a pretty big gap if they don't want to be working 24x7 in order to achieve their goals. #justsaynotooverworking

On this week's episode of the Lean Out Your Business Podcast, I share a powerful activity I do with attendees of the Lean Out Level Up Retreat to help them understand their maximum revenue potential and the maximum impact and reach they have with their current offers.

Figuring this out is critical when you want to scale your business in a simple and sustainable way.

It helps you get clear on your launch plans and marketing plans for the year.  It helps you determine your hiring plans for the year. It helps you recognize where you can implement systems to introduce even more leverage. And it helps you identify where you may have gaps in your current signature offer or offer suite that are preventing you from scaling and reaching your goals for impact and profit.

In this episode, I dive into: 

  • Three things you should consider when building a profit plan
  • The one thing that is more important than profit
  • What you need to look at when maximizing the revenue of a single offer
  • What to look at when maximizing the revenue of a full offer suite
  • How to know what offers to keep and which to focus on 
  • How to leverage your team to maximize your revenue potential


"It’s about more than the profits, it’s about the impact we are making in our customers' lives." - Crista Grasso. Click To Tweet


Maximum Revenue Potential Exercise:

Let's break down an example.

  • Let's say you have a 90-day program that you offer four times a year.
  • You've structured the group to have 10 clients and they pay $5,000 each which = $50,000 total.
  • That's $200,000 annual revenue potential for that single offer if you can fill it with 10 people all 4 times during the year.

But let's say your revenue goal for the year isn't $200,000, it's $1,000,000. The offer as you currently have it structured isn't going to get you there so you will need to reimagine the offer.

This could potentially look like adding more clients into each group, increasing your prices, or running multiple groups in parallel. This will allow you to push past your previous maximum revenue potential and scale into higher six figures and seven+ figures.

This example looks at a single offer but the reality is we typically have multiple offers in our businesses.

We don't "just" have a 90 day group coaching program, we also may do 1:1, have courses, publish books and planners, host masterminds and retreats, etc.

Every business' offer suite is different but even with one signature offer and a backend ascension model, you have a lot to consider.

So what is the maximum revenue potential for your business when you look at all your offers together?

This is the foundation of the profit plan that we build together at the Lean Out Level Up Retreat.  Tune into this week's episode of the podcast to get it started, and join us at the retreat in January to fully build out your profit plan and maximize both your profit potential and your impact potential for the new year.

 

 

References mentioned.

 

Ready For More:

  • Looking for more tips to optimize your business join us inside our private Facebook Community for Lean Coffee with Crista and team Lean Out Method every week. These 20 - 30-minute sessions combine training with Q&A where you can get your burning business questions answered.
  • Wanting an even deeper connection, more planning, and being surrounded by empowering women? Join us this January in sunny California for our Lean Out Level Up Retreat. 3 days of diving deep into what it will truly take to make your big bold goals a reality. Applications are currently open. Spots Limited. APPLY HERE.

 

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Transcript:

0:08 Welcome to the Lean Out Your Business Podcast, a show dedicated to helping entrepreneurs accelerate business growth and simplify success. I'm your host, Crista Grasso, and I've been working with businesses for more than two decades to help them lean out and optimize what's working while eliminating anything that's not adding value. So, if you are ready to get more time back in your day, more profit in your business, and to do business differently growing and scaling on your terms, let's dive into today's episode.

0:44

Hello, hello, and welcome to another episode of the Lean Out Your Business podcast. Today we are going to be talking about profit plans and maximum revenue potential in your business. This is something that I do with all of my attendees of the Lean Out, Level Up Retreat. And if you are not already registered to join me, I would absolutely love to spend three incredible days together in January 2022, in Laguna Beach, California. So, head on over to leanoutmethod.com/group for all the details and to apply to join me, don't worry, we will make sure that everybody is super safe. And that the event is a really incredible transformational experience, as well as a very safe experience for everybody who chooses to come and join us in person, there is truly nothing like the Lean Out, Level Up Retreat out there. So go check it out. But what I want to talk to you about today is one of the activities that we do at that retreat, and it can be really eye-opening for people because one thing that I've realized is a lot of people have never really taken the time to understand what their current businesses maximum revenue potential is, they either have not looked at this for each of their offers, or they have not looked at it holistically across their entire offer suite to see what the potential is in their business.

2:31

So we're going to talk about that a bit today. And how we leverage this at the retreat is we always build out the profit plan for the year. And when we look at the profit plan, we look at the profit plan in the context of how much revenue do you want to make, which offers do you want to focus on for the year that is going to allow you to make that revenue and how can you make those revenue targets in such a way where you are not overworking, you're not overwhelmed, you're not having to hustle yourself into the ground to get there, right? You're able to create the protected space for whatever else is most important to you in your life, whether that's your family, your friends, fun travel, whatever those things are. And so, we really look at that really holistic way of achieving your profit plan. And the other thing that we do, because here's the thing, right, generating profit in our business is critical. That is how we stay in business. It's how we're able to support ourselves; it's how we're able to support our team, it's how we're able to do the things that we need to, to really move ourselves and our businesses forward into that next level. However, for most of us, it's about a lot more than the profit, it's really about the impact that we're making, we tend to be pretty impact-driven, we're very passion-fueled, we are here to really make a difference for our customers. And a lot of us want to really leave a mark and help kind of transform the industry or transform the lives of her clients right? So, when we're looking at the profit plan, we look at it through that context as well. It's not just about the numbers, but the numbers enable and are the catalyst for so many other things that we do take that holistic look.

4:04

But a key part of that is your maximum revenue potential. So, let's talk about what that means and what that looks like. Okay, so let's start by defining maximum revenue potential. It might sound self-explanatory, but there are some facets to it that you may not be thinking of. So, let's define maximum revenue potential. And we're going to start with defining that in the context of a single offer in your business. The same is true when you look holistically across your full offer suite. But we're going to keep it simple and we're just going to start with talking about a single offer. Okay, so maximum revenue potential is really the maximum amount of revenue that you can generate from an offer based on how it's currently structured and there's a few different things that you're going to want to consider. You're going to want to consider the duration as well as how many times it is offered throughout the year. So, is it a 12-month program that's only offered once throughout the year? Is it a 12-month program that somebody can enroll in at any time so it's more of an evergreen open enrollment as opposed to a once a year single timeframe that somebody can enroll the price of the offer and the maximum number of clients that you can actually have in whatever that program or offer is as well as the support required for that offer? So that is the amount of time and effort, resources, and infrastructure that's required from you and from your team. So, you want to start with that single offer, and really start to calculate, you know, if this is a 90-day offer, I can have 10 people in it at any given time, I'm going to offer it every 90 days, I'm not going to take a break. So, I'm going to offer it four times per year, it's a $5,000 offer. So, I'm looking at $50,000 per time I offer it, times four times. So, it's a $200,000 potential revenue stream in the business. And when I look at my team, and what's needed to really support that, I need one accountability coach, I need one VA, and it takes four hours of your time per month, right? And so, if you look at it in that context, within a single offer, you can start to look at what the maximum revenue potential is based on how you have it structured today.

Now, let's say you don't want to make $200,000 in a year, you want to make seven figures, you're like, yeah, I've already done that. I'm moving on, how do I now scale this business? And how do I go from $200,000 to a million dollars, right? So obviously, you're going to have to do something a little bit different with that offer. Maybe instead of having 10 people in, you find a way to allow 30 people in, maybe instead of doing it for 90 days, you find a way to do it for eight weeks, maybe instead of charging $5,000, you find a way to charge $10,000. Maybe you run multiple groups in parallel. So, there's a lot of different things that you can do. But you do want to first start with what's the maximum revenue potential of the current offer that I have, as I have it structured? What do I need to support and deliver this offer realistically, again, from a time or resource and infrastructure perspective, do you have the staff for them, and as you're looking at scaling it, really considering the impact on the resources required to deliver it and making sure that, that is an impact that you want to take on.

7:15

And here's what I mean by that, let's say your ideal business model is a really small team, you want to keep things really simple, you do not want a big team, you don't want to have to go out and hire another accountability coach, or hire another VA to handle customer service, or a technical VA to manage the back end of everything, to you, that starts to create a business model that feels heavy and overwhelming, right? Well, then you're going to want to factor that in. Because maybe offering it multiple times, or really scaling up to such a way where you need to build out your team to support it, is not the right path forward. Now, on the flip side, if you're like, I can't wait to grow my team, this is amazing. I want to have three times as many people in here and I can't wait to bring on two more accountability coaches so I have three, this sounds great, well, then that might be a good alternative for you. So, you want to look at this in the context of your business model, really just be thinking about what it's truly going to take to change the maximum revenue potential for a single offer.

8:24

Now, this was looking at one offer, the reality is most of us don't have one offer. Most of us have multiple offers in our business. So, you want to figure this out for each individual offer. But then you want to pull it all together, you want to look across your offers, and you want to be really realistic about what you can deliver. So, in the example that we just talked about, that's taking you four hours per month of your time, let's say that this is one program, but you also have a high-level mastermind, and that mastermind takes eight hours a month of your time. And then on top of that you work one on one with clients, you have some premium one on one clients, and that takes you 10 hours a month of your time and so as you start to stack all these things up, you're going to quickly realize that you're exceeding your capacity, and you're not going to be able to deliver on all of those services with a level of quality that you want to and that your customers are expecting or you're simply going to burn out, right? And none of those are the right path forward.

So, you do want to look at that optimal mix. And again, this is something that we do together at the retreat. It's a really powerful activity because it gives you a realistic view of which offers do you want to be focused on going into the new year? How do you want to scale those offers? How can you scale those offers? And how can you do them in a way that fits within that target business model that you have and whatever your lifestyle goals are because again, you do want to have that very holistic look at things? And the reality is that this is the key to simplifying and scaling your business.

It might sound a little complex as I'm talking through it here, it's a lot easier if you have the spreadsheets and then go through the exercises and the activities that we do together to really simplify and make this pretty easy to calculate. But if you're just taking some time and reflecting on this yourself, really do the due diligence to go through and say, which of my offers do I want to focus on.

But beyond that, as you look at your maximum revenue potential as input to building out that profit plan, this is really critical. And it is the key to simplifying and scaling your business because this is what's going to give you the clarity that you need on building out your launch plans and your marketing plan for the year. Right? When you know which offers you're promoting, you know how often you want to promote them, you know, what your offer mix is for the year, that makes it really is easy to plan ahead. And to have some clarity on what you want to launch when and what you need to be marketing when that also helps you determine your hiring plans, the worst thing that you can do when hiring is reactive, you want to be proactive, if you're hiring from a place of desperation, you tend to make poor hiring decisions, you end up with people who aren't a good fit and don't stick around. Or by the time you bring somebody in, you're so stressed out and so overworked that it becomes really hard to properly onboard them and set them up for success. And really, ultimately that does impact not only their experience but frequently the customer experience that they're brought into support. So, you do want to look ahead, you want to have a clear hiring plan for the year. And you want to proactively be hiring those people instead of reactively in a state of panic, trying to quickly find somebody, right? It’s just a totally different energy. And it works very differently in the business, it also will help you recognize where you can implement systems to introduce more leverage, right? So, in that initial example that we went through, maybe you can actually increase the revenue without making any other changes other than implementing systems that give you time back. So instead of taking four hours, maybe you're able to do it in two or three per month. Or maybe where you thought you could only have a maximum of 10 people, by putting the right systems in place, you can actually have 15 people and it's still an amazing experience for your customers, right? You don't hurt the customer experience any by adding you know, 50% more people because you've put the right systems in place without having to add additional people in. So just having this clarity is so helpful as you're getting ready to plan the year. And that's why we spend so much time on this at the Lean Out Level Up Retreat. And then we take this information to go off and build that profit plan and really look at that impact that you want to make for the new year.

So, here's a recap. And here's some takeaways for you start off with a single offer in your business, start with whatever your signature kind of core offering is, and really figure out what that maximum revenue is that you can generate from that offer. Based on the duration, the number of times it's offered in a year, the price, the maximum number of clients, and the resources needed to support it. Do that for each of your offers, and then look at them together to see what the optimal mix is. And then we'll get what your goals are for the year and where and what you might want to scale and how you can do it in a way that sticks within your target business model and sticks within your lifestyle goals.

13:33

So, you're not overworking and having to hustle 4/7 to get there. Right? We want simplicity. We want sustainable success. That's what it's all about. So, if you would like to do this together, and you just want an absolutely incredible experience, please apply to join me at The Lean Out Level Up Retreat from January 11th-13th in Laguna Beach, California. Head over to leanoutmethod.com/retreat, you can see a video from a retreat that we did in January of 2020. It was a really, really great experience and this year is going to be even more incredible. So, I would love to see you there. I hope you have an absolutely amazing week, that you got a ton of value from today's episode, and I will see you again next week.

Thank you for joining me for another episode of the Lean Out Your Business Podcast. I hope you got a lot of value and actionable insights from today's show. And we'd love it if you take a moment to leave us a review. If you have any questions on today's episode or on how to lean out your business join us over in our private Facebook community where every week we do live training and Q&A. I'd love to have you be part of the conversation head to leanoutmethod.com/group to join us. And before you go, be sure to subscribe to the show so you're the first to know when we release a new episode. We'll see you next week.

 

by Crista Grasso

Crista Grasso is the go-to strategic planning expert for leading global businesses and online entrepreneurs when they want to scale.  Known as the "Business Optimizer", Crista has the ability to quickly cut through noise and focus on optimizing the core things that will make the biggest impact to scale a business simply and sustainably. She specializes in helping businesses gain clarity on the most important things that will drive maximum value for their clients and maximum profits for their business.  She is the creator of the Lean Out Method, 90 Day Lean Out Planner, and host of the Lean Out Your Business Podcast. She is also the founder and CVO of the Profitable Planner Co and Criscara Jewelry.

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