Making $100,000 may sound easy for many entrepreneurs, but for others this could be a dream come true.
When you create a for-profit business it means that you are literally working to gain a profit.
In this episode Gilbert explains how can you visualize $100,000 in much simpler terms.
Here is a quick tip to start looking at a $100,000 yearly profit in a more simpler way.
Divide $100,000 between 12, twelve represents the months of the year.
Then divide the result between four, which represents the average weeks in a month.
After you have you monthly profit divide that number between seven. The final result is 297. So the $100,000 doesn’t look that scary now, only $300 a day.
For you, this may still be a lot of money, especially with so many people earning the federal minimum. You have to start thinking bigger if you want to scale your business.
After you know your financial goal is just a matter to find another key number that will help you understand how can you scale your business.
You need to have a price list of your products or services. Let’s say that I”m only going to sale one product in my online store. The cost for that product is $200 for the customer.
The cost for me to get that product on the customer front door is $100. That gives me $100 of profit every time a customer buys a product online.
Now, 50% is a really good profit. Let’s also imagine that it takes 50 users or possible customers for one of them to buy one product.
So, out of every 50 visits to my website store I am getting one sale.
So this are the numbers, If I need to make $300 a day, it takes 50 visitors to make one purchase, and each purchase is a profit of $100.
With all of those numbers that means that I need to drive at least 150 visitors to my website daily. Why? out of those 150 visitors, I will only get 3 purchases which are all I need to meet my daily financial goal.
There is another trick that we will cover in another post, and it’s about the quality of the traffic that you drive to your website.
If the queality of the traffic is not well selected your numbers will change.