TGC #27: $100,000/yr business - the math behind it

$100,000 is a lot of money.

And when you’re looking at that number without any plan…

It seems impossible to reach the target.

But what if you would break it down?

And see exactly what’s needed to be done to reach that number.

Instead of just looking at it and thinking about magical solutions…

You see, this isn’t even about $100,000.

It can be about $1M or $30,000 too.

It’s more about the mindset of making it happen.

Let’s break this down using the $100,000/yr example:

1. Revenue goal

$100,000 in 2024.

2. Customer Lifetime Value

There are several formulas (including or not the marketing/sales costs).

We’ll use a simple one for this example:

Avg. annual spend X Period

Let’s say the contract period is 12 months and the monthly retainer is $1,500.

1,500 (retainer) x 12 (months) = $18,000.

18,000 (annual revenue) x 1 (years) = $18,000.

We have a CLTV of $18,000.

3. No. of clients you need

$100,000 (revenue goal) / $18,000 (CLTV) = 5,55 - approx 6 customers.

4. Closing rate

How many leads do you need to close 1 client?

Eg: 3 high-intent leads to close 1 client

5. No. of leads

How many leads do you need in 2024?

1 (no of. closed clients) / 3 (no. of leads needed) = 0,33

6 (no. of clients needed) / 0,33 = 18,18 - approx 18 leads.

Let’s take a look if we split this even further:

1. Leads/year

18.

2. Leads/quarter

18 (no. of leads) / 4 (no. of quarters) = 4,5 - approx 5 leads.

3. Leads/month

5 (no. of leads/quarter) / 3 (no. of months) = 1,6 - approx 2 leads.

So…

You can build a $100,000/yr business with 2 high-intent leads/month.

Crazy, huh?

Look…

A strategy to generate $100,000 is difficult to set up in place.

But a strategy to generate 2 leads/month, well, I think you know the answer.

See you next Friday ??.

Your “$100,000/yr business” guy,

Sergiu

Whenever you're ready, there are 3 ways I can help:

1. Work 1:1 with me and my team to help you build a demand creation ecosystem (strategy and implementation, fractional CMO included)

2. Host a LinkedIn Social Selling Workshop for B2B companies to help you and your team start making money from LinkedIn

3. Book a 1-hour consulting call with me to help you fix any issues related to B2B marketing, demand creation, or social selling

→ Book an intro call and let's talk