4 Things Every New Business Owner Should Focus On
In the beginning stages of your business, you’ve got a lot to focus on. You’re in the process of honing in your client processes, working to build your brand, and getting the word out about your offers. You’re reaching new people and trying to make some money in the meantime.
There’s a lot of time involved, but not everything is WORTH your time. And one thing I’ve seen a lot of new business owners do (and one thing I did myself once upon a time) is spend their time on the wrong things.
Yes, done is better than perfect. Yes, you’re learning and trying new things to see what sticks. BUT man oh man, if I had someone to tell me what I should be focusing on instead of some of the silly things I tried… my life would have been A LOT easier.
So today, let’s talk about the four things you should be focusing on as a new business owner if you want to hit consistent growth (you know…minus the runaround and stress).
Revenue
Revenue is NOT the same as income. Revenue is the money you’re bringing into your business, period. It can be from your courses, digital products, 1:1 services, or affiliate commissions, but it’s everything you make before you factor your expenses into the mix.
And when you see that number, ask yourself…is it sustainable? Can it help you grow, hire help, and/or pay yourself? If not, it’s time to reevaluate some things. Because running on fumes 24/7, 365, isn’t going to last long. You WILL want to be paid for your time and energy, and have some left to spend living life.
Expenses
For the longest time, I never looked at this number. Okay, I did sometimes, but not very often — it scared me! I totally didn’t want to see what was coming out of my bank account, but looking back I should have kept my finger on the pulse.
Your expenses are everything you’re spending on your business. Ev-ery-thing. Your paycheck, paying for help with contractors, software services, paid ads, a walking pad to keep you active during the day (hi…it’s me. Worth it.) when you can’t make it for a morning walk. The whole enchilada!
And sometimes, the expense is huge but worth it.
At the end of 2020, I joined a mastermind, and it wasn’t cheap. We’re talking $2,000 per month huge. But the payout I’ve gotten from it goes far beyond the money I put into it. I see it more like an investment, because I’ve grown in ways I could never have on my own. And because of that, my business has too.
If you haven’t connected the dots…it means more revenue too!
So yes, some things aren’t cheap, but they’re justifiable. Basically, you need to be looking at each expense through this lens — ”Is it contributing to the overall success of my business?” If not…you could be throwing money away.
Traffic
Knowing this number means you can really, truly, see what content is creating ROI. Without tracking something like traffic, you can go a long time thinking something you’re doing is working, but it’s not actually moving anything forward or making any kind of impact on your bottom line.
Is it nice to hear people say, “That sounds really cool! I want to try it out!”...yes. But is it making you money? Are those people buying from you? Not always! And that’s where knowing traffic becomes important. You can start getting a feel for what people want to see, and ultimately, see if they want to purchase from you.
It can also help you see any gaps in your content or marketing strategy. Maybe you do have a great offer, but the way you’re positioning it or trying to reach people is off.
Conversions
AKA the sale. If you have the traffic coming to your pages, and people are taking action (doesn’t have to be a sale necessarily. With opt-ins, this would be downloads, etc.), then you have conversions. And if everything goes according to plan, if you have traffic, you have conversions.
BUT the average conversion rate may surprise you. Conversions sit at the end of the funnel, and have the smallest number of people. Industry-standard for digital products, courses, and 1:1 services/done for you (DFY) clients have conversion rates of:
Digital products: 5% conversion rate
Online courses: 2% conversion rate
DFY clients: 20% conversion rate
So if you have 1,000 people come to your page (traffic), that’s about…
Digital products: 50 conversions
Online courses: 20 conversions
DFY clients: 200 conversion rate
Obviously, there are so many other factors that play into these numbers, but this just gives you a general idea of how it goes.
So, if you’re getting traffic to your page but people aren’t converting… that should sound off an alarm!
How is the customer journey looking? Does each stop make sense? Does the lead up/funnel make sense for what you’re driving people to buy?
If conversions are off, there’s a lot more “deep work” that needs to happen because it could be a few different things, like messaging or within the offer itself.
AHH! Did I just stress you out?
Don’t feel like you have to toss out and start from scratch if that’s you right now. Sometimes the answer is simpler than you think. But solving the mystery can be tough, so allow me to help!
I can’t tell you with certainty if your marketing strategy is working or not. But here’s what I know — if you have healthy conversion rates, then you must be doing something right.
However, if you do want that clarity, then invite you to join me inside of $10K on Replay where I’ll show you how to find it!
This is my coaching group where you’ll learn how to tell if your marketing strategy, and offer stack, are working for your business as a whole. You’ll get expert advice, coaching from me, and a whole lot more. Sound like your thing? Join me here!
