The Secrets Multiple 6-Figure Earners Aren't Telling You
Episode 639: Show Notes
After serving clients one-on-one, we ultimately changed the entire landscape of our business, yet we didn’t even realize that’s what we were doing! If we could go back in time, there are so many things we would do differently, and today, we’re going to share them with you. When we got to a certain stage of business, we froze up and felt like we were on an island. We had no idea what the next step should be and it felt like everyone else had all of the answers. So many of our clients reach the same phase where they hit a milestone marker and feel like there's something that they’re missing, like a missing piece of information; a formula, or a blueprint.
If you feel like million-dollar businesses are gatekeeping this information, the truth is, some of them are! If you’re at the stage of hitting a quarter of a million dollars and don’t know where to go from here, we’re here to tell you. Consider us your Fairy Godmothers of Business Past, telling you your future so you can really decipher what you want to focus on in this phase! Tune in to find out which things you’re tying to success that need to be let go.
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Calculating Budget and Saving on Tax
Forecasting is both an art and a science, but it is not a guess. There are ways to calculate your growth and your budget. Our big question when we hit the six-figure mark, was how much should be allocated to things like conferences, coaches, and hiring. We also figured that the more we earned, the more we’d be paying in taxes, yet we noticed that bigger businesses than ours were paying significantly fewer taxes. We were making good money, yet we desperately needed in on the secret because our tax was increasing drastically. The answer, unbeknownst to us, was quite obvious: we needed to hire a tax strategist! Since doing so, we have saved thousands of dollars and even saved on medical expenses, without having formal healthcare included in our business.
How Our Relationship with Profits Has Evolved Over the Years
Here’s a weird transition that might take a moment to wrap your head around: profit isn’t always the goal! We’ll admit, it feels weird to spend more as soon as you start making more but, although we’ve never intentionally made a loss, many large businesses do so all the time as a strategic growth mechanism. Just because you have high profits doesn’t mean you have a sustainable business. If growth is slow, you’re most likely keeping too much of your profit. You have to reinvest in your business! It’s important to understand that the seasonality of your business adjusts according to your seasonality as a human and that your business doesn't have to grow every year. Business owners need to be open to the fact that loss can, in fact, be strategic.
Pulling the Lever of Labor and Relationships
The ultimate secret multiple six-figure earners are keeping is that labor is the lever they’re pulling! Simply put, they’re getting more help. If it’s the right labor, it’s often the only growth mechanism after a certain stage. If you’re the only person responsible for sales in your business, no matter what you sell, you are your own bottleneck. There may be sales-related activities that you’re holding onto too much. It’s also essential to maintain a service mindset.
You may be able to sell more, but if you’re disappointing people on the other side of the sale, your business is going to be short-lived. In our experience, relationships have been critical in the long-term success of our business. It doesn’t take a lot of people, it just takes the right people. Invest in your relationships and your business will thrive.
Growing Your Skillset Alongside Your Business
As your business scales, it calls on you to develop new skills. If you are not yet good at these new skills, don’t be discouraged and resort to old skills that you know you’ve mastered. Right when things are about to really take off, many business owners begin to feel out of their depth and slide back into starting mode, pivoting to new products or offers, instead of honing their skills of sustainability. If you don’t deliberately choose to learn new things, you’ll keep sliding back to being a starter. If in doubt, take on the challenge. Believe us, it’ll be worth it in the long run!
Quote This
Forecasting is both an art and a science, but it is not a guess.
Highlights
Calculating Budget and Saving on Tax. [0:08:42]
How Our Relationship with Profits Has Evolved Over the Years. [0:15:48]
Pulling the Lever of Labor and Relationships. [0:22:14]
Growing Your Skillset Alongside Your Business. [032:32]
ON TODAY’S SHOW
Abagail & Emylee
The Strategy Hour Podcast
We help overwhelmed and creative entrepreneurs break down their Oprah-sized dreams to create a functioning command center to tame the chaos of their business. Basically, we think you’re totally bomb diggity, we’re about to uplevel the shiz out of your business.
KEY TOPICS
Scaling, Profits, Strategic Loss, Saving on Tax, Calculating Budget, Six-Figure Business
