Now, in stage 5 of the small business roadmap, it’s time to get into the nitty gritty: can this business idea of yours actually make enough money to support you in a meaningful way?
This is a stage most of us are not well prepared for, typically diving in without any knowledge of the metrics, the movements or the models.
That’s what we break down for you into 7 steps in this conversation, taking you from “I made a dollar,” to your Freedom Number™ (the amount of money you need to make your full time living from your business).
You could have access to the best investors and the brightest business minds in the world. They still couldn’t tell you if your idea’s going to work with certainty.
This money step is where the checks, balances and bounces prove your idea has heart enough to live on it’s own or if it needs some more tweaking. Enjoy the conversation!
(PS: If you’re not already, subscribe in itunes so you can get the next episode like direct deposits.)
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“Stage 5 takes you from “I made a dollar!” to your “Freedom Number””
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Money Steps:
The real meat of each of these items is in the conversation. The items below are meant as simply a placeholder while you listen to the episode.
- Gather and analyze customer feedback and sales data. We talked about the power of surveys here: Hey, Could I Ask You a Few Questions? The Art of Surveys (FS094).
- Define and implement metrics that matter. ()How The Wrong Metric Sinks Your Business)
- Decide if you’re going to bootstrap or raise money?
- Based on the metrics you’ve picked and the performance of your MVP, adapt, iterate and/or compliment your product or service.
- Based on the metrics you’ve picked and the performance of your platform, grow and adapt your audience.
- Rinse and repeat to grow revenue to get to your freedom number.
- Pivot or persevere.
“About a month after we started Y Combinator we came up with the phrase that became our motto: Make something people want. ”
The Roadmap Episodes:
- Clarity (episode 100)
- Connection (101)
- Planning (102)
- Build (103)
- Money (104)
- Scale (105)
- 4 Updates (106)
Show Notes
10 Questions to Ask Yourself Before Raising Money to Fund Your New Business
A Bar Above Mixology – Mixology Training & Cocktail Mastery
Don’t Click: Chase Reeves on Instagram: “There is an awful lot of my finger on that knife.”
Learn how to set goals that actually stick!
The Top 10 Mistakes in Online Business
Every week we talk with entrepreneurs. We talk about what’s working and what isn’t. We talk about successes and failures. We spend time with complete newbies, seasoned veterans, and everything in between.
One topic that comes up over and over again with both groups is mistakes made in starting businesses. Newbies love to learn about mistakes so they can avoid them. Veterans love to talk about what they wish they had known when starting out.
These conversations have been fascinating, so we compiled a list of the 10 mistakes we hear most often into a nifty lil' guide. Get the 10 Most Common Mistakes in Starting an Online Business here »
This is definitely where I’m at this moment. Very good ideas for what to do next. Love it! This series has been amazing. I think it will become a thing to listen to every once in a while, like Seth Godin’s Startup School… I am impatient by nature and I can totally see now how I’ve been trying to do stuff too early. I feel like I have my brain scattered all over this “staircase” – no wonder I feel overwhelmed. I will go back, pick up the pieces and try to do one thing at a time until finished or close enough. I have tried to have different themes for different weeks/months before, but it was hard to come up with them after a while. You guys rock.
“I think it will become a thing to listen to every once in a while, like Seth Godin’s Startup School.” That’s high praise to me. Thanks :)
“I can totally see now how I’ve been trying to do stuff too early.” But, again, we all do… almost by design. You can’t learn if the clarity’s right until you try to earn some money, get the feedback, rejigger the idea, etc. You’re *RIGHT* where you should be, Eveliina. You’re doing the thing.
I am. The designer is a funny guy. Person. Whatever :o)
I loved the last couple minutes of the show! So awesome that you guys have such engaged fans. :)
Thanks, Kevin!
Anytime, Chase! Also, check your Twitter. I asked you a question a couple weeks ago about the hat you were wearing in a Google Hangout you were doing with Pay Flynn. I need to know where to get that hat!!!
We’re in this stage right now, and while I’m thrilled to have made it this far, this stage is as great as it is miserable. We’ve had our first 1k month even though we’re in the “off” cycle of the selling process.
Trying to find what to improve can be a serious challenge. We’re in a very, very niche market, so there isn’t a whole lot of analytics data to work with because those who come to us need “painkillers” and will generally purchase the product…if not instantaneously then eventually. We’re tracking KPIs and working on adding complimentary products to our line to up the average purchase price.
It’s a grind and I think if we make it out of our “dip”, we’ll have a sustainable business.
Thanks for doing this show – plenty of value-bombs were dropped :-)
“It’s a grind and I think if we make it out of our “dip”, we’ll have a sustainable business.” You and me both (and probably everyone else here as well), Corinn :)
“Trying to find what to improve can be a serious challenge.” That’s very true. In the “growth hacker” world the idea is this: come up with 30-100 ideas to try. Try them one after the other to see what works. Which sounds, to me, like getting my teeth filed flat.
I’m idealistic and focus instead on the stories of the people, making the product better so they’re more of a badass than they were before they used the product. Still a grind. Heart & Hustle.
Loved the show you guys! Looking forward to seeing this new roadmap inside Fizzle and work my way through it. I think this would help my business leaps and bounds.
As for the intro, I’m happy you read mine “if we were…”
Thanks, Luke :)
I’m totally in this part and this is my question:
I’m now in the stage of creating more products, books / online courses or growing my revenue / audience on two (ebook & online course). I think there are more opportunities when I look at the questions and desires from my audience. Corbett is talking about having more products on ThinkTraffic.
What’s your advice on this?
I’m unfamiliar with your topic, Jelle, so I’ll just say this: there isn’t a right answer to your question. It’s all an adventure with risks and rewards… so put on your Indiana Jones hat, create a little map and think through some of the potential outcomes and get crackin’.