Quick - what are your magic numbers?
You know - those numbers declaring how many hours a week and week you’re willing to work, the amount you charge, and how much you’re going to make this year.
If you’re not sure what your numbers are, or where to even start - good news, you’re in the right place.
Your THREE Magic Numbers are:
1 - How much money you are going to make this year.
2 - How many hours a day/week you’re going to work.
3 - How much you need to be charging for products and services.
How much money you are going to make this year. I cannot stress enough the importance of goal setting and declaring your intentions to the universe. Without goals, what are we working towards? And without declaring our purpose, how do we know what steps to take to get there? It all starts here “I am going to make $_____ in 2021.” Say it loud and say it proud my friend.
How many hours a day/week you’re going to work. Once you have your BIG money goal, the easiest way to get there is to reverse engineer it. You can do this one of two ways:
First - the TIME + RATE approach. You look at how many hours a day/week you’re going to work. Say, my goal in 2021 is to make $100k and I want to work 6 hours a day, or 30 hours a week. This means, I need to earn $1,925/week, working 30 hours a week, or charge $64/hour.
Can you make sure you’re working 30 consistent hours a week (sessions? classes?) and charging at least $64/hour? Perfect, you just hit your goal.
If not, move on to step 3 to make sure you’re charging enough to get there, or if you need help setting rates .
OR, you can take this second MONTHLY AVERAGE approach (and one I recommend if you’re offering programs and/or products) - Take your yearly annual target and divide it by month - this is your monthly target. With my $100k annual goal, you need to average $8,333/month. This doesn’t factor TIME into the equation, just total dollars. Some months will make more and others will make less; as long as your average or products and services equals $8,3333/month, you’re golden.
How much you need to be charging for products and services. I love to look at this number last because rates are not arbitrary!! They’re a reflection of your 4 E’s: expertise, experience, education, and effort. All of these equal your WORTH.
You might be wondering how you’re going to hit that magic monthly or weekly number. Easy. You’ll adjust your rates accordingly.
Example if you’re calculating hours worked per day or week: Based on the above example of earning $100k working 30 hours a week (6 hours a day for 5 days) we know you have to earn at least $64/hour of work, or $385/day.
I find this method is best with those who regularly work on sessions like personal trainers or personal care workers. If you know you’re going to see 5-6 clients/day you can easily raise your rates (yes, easily) to match your target income, and *boom* you are set.
Example if you’re calculating based on total monthly income: If you know you need to make $8k(ish) a month in products, programs and services, you can start by breaking down expected or regular income each month. If you’re anticipating training ‘x’ amount of clients at ‘x’ rate, and selling ‘x’ many digital e-books at ‘x’ rate, what is that total, and how much more do you need to hit your monthly target?
If you’re looking for support not just setting goals but HITTING them, Fitness Business Formula is for you. In my signature course you’ll learn all about setting rates, raising rates, owning your worth, and SO much more related to the legal, financial, operations, and marketing aspects of your fitness business. Questions? Interested, let me know below and let’s talk ASAP.
Cheers to making that $$$ in the new year!