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Many entrepreneurs strive to make $100K in sales. It’s seen as a magical milestone where life becomes sunshine and rainbows, all your problems disappear, and you OFFICIALLY make it as a successful business owner. From my personal experience and from working with over 100 entrepreneurs, I don’t think this is true. $100K in sales is simply not enough for many entrepreneurs to pay themselves as much as they want and have the time and space to be the CEO of their business. In this episode, I’m telling you why I think that $250K is the new $100K. Tune in to learn 4 reasons why more cash flow will help you to not only keep your business afloat but will give you the head space you need to grow a business in line with your vision.
One day in November 2021, our nanny called in sick last minute and I had to call off work for the day to take care of my then 20-month-old son. We were outside playing and I had a very sudden realization that I wasn't stressing about not being at my computer working.
A year prior to that, I would have stayed up all night playing catch up, and I wouldn't have been present with him during the day.
Why did this shift happen? Because I had more than doubled my revenue from just shy of $10K/month in Q4 2020 to about $25K/month in Q4 2021, and I used some of that revenue to expand my team. Because my business didn't rely on me being there 100% of the time to keep things going.
Are you ready to turn your cash flow into $100K in wealth? My Profit + Prosper group program empowers six-figure entrepreneurs to get off the cash flow hamster wheel and start making wealth-building investments in business and in life. Click here to learn more and sign up for the next cohort launching October 24th, 2022!
I've worked with enough business owners to know that two things are true:
$100K is a milestone that should be celebrated, and
$100K is not a revenue level that many people can sustain for a long time without burning out.
Why? Because at that level, you're not bringing in enough cash flow to get a lot of help and also pay yourself a consistent, decent salary. You're mired in serving your customers, and don't have the time or space to stay consistent with sales and marketing or to come up with new ideas and work on projects to grow your business.
That's why I think that for most people, you probably either need to raise the bar to $250K in annual revenue, or run a lean business at somewhere between $6-8K months.
But shifting past that $100K point and getting to $250K (or more!) requires a few key things from a financial perspective:
A solid money mindset so you can think like the CEO of a multi-six figure business.
A business financial plan so you know how you'll make your money.
The right investments in your sales, marketing, team, and systems.
A system to manage your money so that when you do double your revenue, your dollars end up actually going where you want them to go.
The same things that got you to $100K probably won't get you to $250K and beyond.
Check out this week's episode of the podcast to hear why I think $250K is the new $100K, and how you can implement a profit strategy in your business to help you get there.
In this episode, you’ll learn:
03:45 Why $10K/month isn’t all it’s cracked up to be
07:28 Why you need to break out of the feast or famine cycle and running the numbers on what you can afford at $10K months
15:50 To grow my business beyond $100K, I had to do the following…
21:32 The millionaire mentality
24:10 Planning for profitability
25:50 Investing in the right things
30:02 Managing money systems
Click here to listen to this week's episode!
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I’m Sarah Young - a CPA, Virtual CFO, and the Owner of Young + Co! I have over a decade of experience in helping entrepreneurs scale their businesses and build wealth at the 6- and 7-figure levels, and I started the Profit + Prosper podcast to help you do the same. Profit + Prosper is a business finance podcast created to help entrepreneurs build their wealth in a way that’s fun and empowering. This is NOT a boring numbers podcast - I will share tactical tips to increase your profit so you can truly prosper in your business and in life. I hope you’ll subscribe so we can Profit + Prosper together!
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