uh-oh.
I’m on a soapbox…for good reason.
There is this fad in the coaching world about six figures and I’ve got to talk about it.
It goes something like this:
“If you don’t make six figures within your first year, or possibly two, then you aren’t building your business right or fast enough.”
“Once you have a six figure business, you’ve made it.”
“I went from a big fat zero to $100,000 now to $350,000 and my online program will show you how too.”
“I crossed $500,000 so far this year in sales.”
Those are amazing accomplishments – truly spectacular, especially when you think that less than 20% of women-owned businesses right now cross the $100,000 mark.
But none of that is REAL. Here is what I mean.
People think of a six-figure business and they think that someone has at least $10,000+ sitting in a bank account. I’m sure some 6-figure businesses do. But a lot of ’em don’t.
I had a client from a couple of years ago argue with me why she was justified in making her coaching payment late. Why? Because I had “plenty of money” from my “six-figure business.” That is when I realized people don’t know the real numbers of a business.
Revenue is different than what is in someone’s bank account. What are the real numbers behind the 6-figure business? Not many people are sharing that part of their six-figure business.
The first year I had a “six-figure” business, my cash flow sucked big time. I was paying off $50k in debt, investing in a mentor, hosting events, attending events and living my life. There were times I had ZERO in my bank account, yet I technically had a six-figure business.
I’ll be honest, I kind of feel like I want to throw up by even writing about this. But it’s gotta be talked about. Why? People are deflating their passion by comparing themselves to this 6-figure standard that is hardly a standard. It’s hype. And for some folks it’s a great result, and others it’s a contest they are fighting to be in because they are equating their value as a person with the revenue of their business.
My six-figure business that I’ve had since 2011 has broke even if I count all of my business expenses on my tax return. I know I’m not the only one. I pay myself, I contribute to my household, I pay for the household vacations and our entertainment (as per the household agreement my husband I set up) and I put the rest back into my business to pay for mentoring, my team, events, training and other expenses like InfusionSoft and otherwise.
The past six months I have been consciously decreasing my monthly expenses so I could enjoy more profit and have more cash flow and actually have savings. What a concept.
So what does this mean for you?
1. Stop comparing yourself. You never know the battles people fight and endure behind their 6-figure label. (I know of amazing 6-figure entrepreneurs who have had and are in the process of having their marriages dissolve, sick parents, addiction, cancer, etc. Money does not take away those things.)
2. Be happy for people. When people hit a goal in their business or life, be genuinely happy for them. If you feel jealousy, look at it because that is either your inner mean girl coming out and telling you can’t have it, or your soul speaking to you because you know you are capable of that too.
3. Get real with your money. In other words, stop avoiding it and know what your numbers are. My colleague Stacy Michelle talks about this in her free webinar: 4 Steps to Make Your Money Goals a HOT Reality.
4. There is a price for everything. If you don’t do your own sales, you pay a big commission to your sales team. So for every dollar, you keep about $.25 after you pay expenses, your sales commission, and taxes. That could be a fantastic business model, if you want that. If you don’t there is another way to make money.
5. Give yourself a break. Are you making money? Are you growing? Are you improving? Do you enJOY your freaking life? Are you having fun? Money is a great tool. If you sacrifice everything that is important to you to make it, you are missing the point. Money is a part of the journey, not THE only journey.
This article is the first of a series of things that I’m blowing the whistle on. Look forward to insights on:
- Live Events – people are smarter than you give them credit for
- Sell without selling – say what?
- Gratitude is the ultimate path to complacency
- You can only do ONE thing in your business
- Lifestyle marketing is super annoying (unless it’s not)
