{"id":5395,"date":"2023-02-01T16:32:15","date_gmt":"2023-02-01T20:32:15","guid":{"rendered":"https:\/\/safimedia.co\/?p=5395"},"modified":"2023-03-14T13:31:22","modified_gmt":"2023-03-14T16:31:22","slug":"mega-revenue-month","status":"publish","type":"post","link":"https:\/\/safimedia.co\/fierce-insights\/mega-revenue-month\/","title":{"rendered":"5 Insights From a Mega Revenue Month"},"content":{"rendered":"
January was the single biggest revenue month in our company\u2019s history. <\/p>\n<\/div>\n<\/div>\n<\/div>\n
In 31 days, we quietly closed ten times more revenue than the average woman-owned business generates in an entire year. <\/p>\n<\/div>\n<\/div>\n<\/div>\n
In this article, I will share key details from the experience including:<\/p>\n<\/div>\n<\/div>\n<\/div>\n
My goal in writing this article is that you find it helpful, freeing, and that you get at least one actionable takeaway you can use to grow your business.<\/p>\n<\/div>\n<\/div>\n<\/div>\n
When you are reporting on numbers, the details matter. A lot. <\/p>\n<\/div>\n<\/div>\n<\/div>\n
One habit I detest is when people report numbers in a misleading way. This is really easy to do because the population as a whole lacks basic numeracy skills. When you lack basic numeracy skills, you are really easy to fool. Shady marketers count on this. <\/p>\n<\/div>\n<\/div>\n<\/div>\n
So when someone announces (on social media, always on social media) they \u201cdid a seven figure launch\u201d \u2013 what they aren\u2019t necessarily reporting on is\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n
There\u2019s nothing wrong with any of the above (except, potentially for the stress leave part). But understanding the detail that surrounds the money is important. <\/p>\n<\/div>\n<\/div>\n<\/div>\n
To wit: We invested precisely zero dollars on advertising or affiliate fees in our monster sales month. Our gross margin on the total amount will be about 80%. <\/p>\n<\/div>\n<\/div>\n<\/div>\n
Over the course of the last year, I started to notice how a lack of numeracy generally, and financial literacy specifically, was negatively impacting women in business. As a result, we put a much bigger focus on entrepreneurial finance into our year-long coaching program. <\/p>\n<\/div>\n<\/div>\n<\/div>\n
I saw an immediate impact in how our clients are thinking about money, leveraging capital and being strategic about finance. This is so key. When you understand money, you can connect with it better. And when you connect with money better, it trusts you more. When money \u201ctrusts\u201d you, it flows to you. This sounds woo but it is my \u201clived experience\u201d as we coachy folks say.<\/p>\n<\/div>\n<\/div>\n<\/div>\n
In my industry \u2013 the coaching industry, a common marketing tactic is to publicly share your revenue (with zero accompanying detail), and discuss how important it is for women to \u201cnormalize wealth.\u201d This is often followed up with further posts showcasing the expensive purses you just bought in your continued and sustained mission to \u201cnormalize wealth.\u201d<\/p>\n<\/div>\n<\/div>\n<\/div>\n
LOLOLOLOLOLOLOL.<\/p>\n<\/div>\n<\/div>\n<\/div>\n
Knowing that someone did a 7 figure launch has zero impact on someone\u2019s numeracy or financial literacy. This stunning lack of detail into the money therefore does NOTHING to \u201cnormalize wealth.\u201d<\/p>\n<\/div>\n<\/div>\n<\/div>\n
When it comes to money, details matter. Numeracy matters. Having a grounding in entrepreneurial finance really matters. This is what \u201cnormalizes wealth.\u201d <\/p>\n<\/div>\n<\/div>\n<\/div>\n
Businesses generally have two forms of revenue. There\u2019s \u201cclosed revenue\u201d. Closed revenue refers to revenue that exists in contract form. Your client signs a binding contract to pay you a specific amount of money for a pre-determined product or service. You accrue this money over time. This is really common in service-based businesses. Let\u2019s say you sign a client for a $15K deal, and they contract to pay $5K per month for 3 months. <\/p>\n<\/div>\n<\/div>\n<\/div>\n
If you report on closed revenue, that\u2019s a $15K sale. Nice! <\/p>\n<\/div>\n<\/div>\n<\/div>\n
But there is also collected revenue. This is how much money you actually collected<\/em>. Because your customer is in the first month of your 3 month, $15K contract, you\u2019d report $5K in collected revenue. Also nice!<\/p>\n<\/div>\n<\/div>\n<\/div>\n We operate our business with a focus on collected revenue<\/em> and 80% of our focus is on collected revenue. When I look at our financials, I am looking at collected revenue. However, we also pay close attention to closed revenue because a) we generally collect 95% of the revenue we close, b) we sell multi-month deals and c) because it is an important lead indicator for growth. When you start to see a series of big closed revenue months, it\u2019s a potential sign you need to invest in team and systems to support or service that growth. <\/p>\n<\/div>\n<\/div>\n<\/div>\n Our mega month was CLOSED REVENUE. Some of the money is in our accounts, and some will flow in over the ensuing months.<\/p>\n<\/div>\n<\/div>\n<\/div>\n You know how, when you look at the sun, what you see isn\u2019t the sun right now but the sun 8.33 minutes ago (due to speed of light issues). <\/p>\n<\/div>\n<\/div>\n<\/div>\n The same is true in business. The money you see today is usually because of action you took in the past. <\/p>\n<\/div>\n<\/div>\n<\/div>\n What I love about our huge money month is\u2026NONE of it is derived from 1:1 service, and ALL of it is derived from monetizing assets we have developed over the last 3 years<\/a>. I\u2019m insanely proud that, because of the way we structure our company and offerings, all our programming is intimate and bespoke while also being scalable. <\/em>Therefore, the revenue we closed is a joy to collect \u2013 it doesn\u2019t feel heavy. I don\u2019t feel burdened by the workload. Therefore, the growth is highly motivating. This is what happens when you grow with ASSETS not HUSTLE. <\/p>\n<\/div>\n<\/div>\n<\/div>\n3. Current revenue is a snapshot of what you did 3-6-9 months ago<\/h3>\n<\/div>\n<\/div>\n<\/div>\n