Set Your Annual Revenue Goal
So we didn't want a math we talked about a lot of numbers but we haven't actually set your revenue goal for this year yet we're going to do that right now and again I just want to acknowledge that the challenge with revenue planning is that it's guessing right I get that the end of the day were making a lot of assumptions but making assumptions and picking a number gives us something to focus on and it's better than not doing this at all so I want you to think about based on the calculations that we've done so far how much money do you think you can reasonably make this year now you've got two points that we figured out these air kind of our two ends one over here is your production ceiling that is the maximum amount of money that you could make this year then over here we have the value of your audience and that's could be both your email us, your retail audience and your store audience your revenue goal is going to be somewhere in the middle if you feel like you're pretty good at lis...
t growth or you've got a big marketing budget you might be able to jump a lot closer to your production ceiling if this is kind of new to you you might go a little bit over your audience size even though it's not close to your production ceiling so it just kind of ask about people hopefully you guys have been sort of running numbers along so let's start with tiffanie because we've been kind of running some of your numbers what was your production feeling two hundred thousand and what was your audience value right now it was like thirty okay now and you were kind of an interesting case and that you also do have previous revenue so last year you had ninety five rice so base it's on kind of your previous revenue and your audience value if you were actually really using them where these that probably puts you what like one twenty one thirty somewhere in there my yeah my goal for last year was one twenty five ok yeah so I would say that you could probably safely assume based on the kind of audience value new product price point and where you've been that you know your production ceiling his two hundred k I think you could make like one twenty five one thirty feels like a pretty reasonable revenue goal for you this year, right? I think so yeah does it make you feel uncomfortable at all? No, I'm not because I hit you know we want to stretch that I want you to take the number of that that feels reasonable and stretch it up just a little bit soon what's that feel like for you one forty one fifty I mean yeah when like one eighty five oh, I love it that you're really stretching that's perfect grates that would be uncomfortable revenue with perfect I'm general but not out of the realm of possibility based on all of the math that we just don't think so right? Okay let's do someone else who else would hear someone who's kind of in a very different point they're businessmen tiffany and yeah so what did you figure out was your production ceiling again? We're ball parking I mean I could probably do one hundred thousand okay product yet um I don't really have like five people on the mailing list and what was your you did you have revenue last year? I did but it was tip but I was awful up okay, so it was seven about almost eight thousand last my highest years been eleven thousand I was pretty consistent that year, so so you're going to spend a lot of time on audience growth is here right now, but you're also going to launch new collections and be strategic so kind of in between that seven to eleven thousand and your hundred thousand dollar where do you feel like feels like a logical revenue goal for you this year if I really stretched I'm thinking twenty five to thirty considered where I'm starting for yeah, it is pretty small I'd like to do twenty five and do you have a marketing budget at all I don't but I'm thinking what sounds reasonable like how much could I spent what's a minute mike and spend and see results I mean that's kind of what? Yeah, even that dollar a day that get me like twenty facebook likes ok, yeah yeah and it could be loan okay, I was thinking we were fifty to one hundred bucks a month, you know? Yeah, yeah, yeah that's perfect. I think that's a really good place to start on the other the beauty of, like, spending a little bit of marketing money on facebook as is that the results are very direct so you know immediately how much your money is getting you so like I turned my lead ads on for the first year I ran them before the holidays I turned them off because the holidays were crazy. I turned them back on and within a week I had a pretty good idea of what it was going to cost me for a lead and then I said, ok, this is my revenue goal. This is how many people I have to get on my list this is how much it cost me per lead. This is my marketing budget so in my case what it worked out too, as I'm spending about seventeen dollars a day on facebook ads to add about seven new leads to my less today is my target so it's huge it's, not it's about six thousand dollars an ad spend, but based on the value of my list, if I could get someone on my list for two dollars and I know they're worth twenty two dollars, worth it all day long. So yes, so thinking about kind of even if you're starting with a dollar or two dollars a day and you're building your audience up a little bit, that could help you grow a little bit faster and remember, too, that now you can also go into facebook and use that to run instagram ads tio magic. So my audience actually still ten seymour in facebook, but especially if your audience he's a little younger, you can run instagram ads as well with that same market, about resisting facebook as only because facebook is trying to monetize the site so much that even though I have ah product, you know, business page, I don't get a lot of don't generate money as host on it, and so I actually have a very strong thoughts on that, which is that facebook is a business that gives people a lot of stuff for free, and I don't think it's unreasonable for them to ask other businesses to help fund their very expensive operating expenses. Thie other reason that I spent on facebook ads is because I don't really want to spend my time there and it's worth it for me to spend a little bit of money to reach my ideal customer and not half to actually be on the site, that is very much worth it for me, I personally love instagram, I don't pay to run instrument ads because I love hanging out there, and I can engage my customers really well there without having to spend time or send money, so I spend my time there, so that's kind of that, like, if you don't, if you know you could reach your customers, but you don't want to spend a lot of time there, spending a little money is the way to go. Okay, so you're working in twenty five thirty is your goal for this year? Yeah, ok, perfect that's who else desert? Where you at a naming for seventy five thousand. Perfect. So you that and that kind of makes sense, I think with the audience size and where you were thing that makes sense is a goal for you. So it's, not quite at your allegations school yet, but it's definitely, I think, fits within your production ceiling and where your audiences are we getting anything from online there if some people are asking you mentioned catalogs a bit in this class and they wanted to know at what point in a business should one develop a catalog so if you are so first of all I sort of use line she and catalog fairly interchangeably if you are trying to sell wholesale it all you need a line sheet now my line she is literally image is printed on a white background putting on a sheet of paper stabled on the corner and I actually talked all about that and it's not your products to retailers class by catalog I'm thinking I'm just going to go a little bit my sir a couple of model pictures slightly nicer paper send it out I don't think there's any logical point in your business to make that transition is just if it feels like you want to kind of up level especially if your price point is higher I think making a slightly nicer catalog is the way to go but for a long time in my business we're talking you know, eight years at this point a really simple line she with a nice corner staple gets the job done and that you wanna have right off the bat okay, great thank you that's right you like for the marketing but do you have like a percentage that you think is a good percentage of your revenue for the year that you should amos a to spend. Or was it just because I think it's very different for every business, and I actually have a hard time telling anyone to go with percentages because I think it kind of limits, you see, but what I will say is that I do have, like, certain thresholds that I look at of, like, if I'm spending this much money on trade shows, if I'm not making x amount of dollars by the end of the year and wholesale than that to me, is where it's sort of fails. So, like when I go to a trade show, I know what my spend is, and I know what dollar amount of orders I want to write because I also know what dollar amount of orders come in outside of trade show season, so I know kind of how much I need to write to feel like a trade show is worthwhile makes sense, yeah, awesome. Okay, so remember that our stretch revenue goal as we're going to take what feels reasonable and kind of that point between our production ceiling and our audience size, we're gonna pick something that feels reasonable, and then we're just going tweak it up a little bit so it feels a little more uncomfortable.