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Welcome back to Simply Rich Shifts {{ first_name }} π΄πΈ
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This Week's Message
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Why 1/5 of your business is carrying most of your revenue, and why you cannot see it from the inside |
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The 800: the part of an established business that is producing something, just not enough to justify what it costs you |
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The 20 minute exercise that surfaces it, using numbers you already have |
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In 2012 I found out that 800 of the relationships I had spent five years building were producing nothing.
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I bought a senior home care franchise in 2007. My franchisor was clear about the work: 40 visits a week to referral sources in the community. Hospitals, discharge planners, elder law attorneys, senior living directors. So I did 40 visits a week, and when that got to be more than I could carry I hired a full-time salesperson to run the route with me.
Five years in, we had a database of 1,000 referral sources. She was driving all over the county, some of them monthly, some every other month, some quarterly. We had built a million dollar business. By every measure I had, the strategy was working.
Then two neighboring franchise owners and I started sitting down together to run our numbers as a quarterly practice. Half a day, and then lunch. The first time we did it, I pulled the referral data.
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200 of 1,000
referral sources were producing 80% of my revenue.
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I read it twice. Five years of driving, of coffees, of dropping off lunches and holiday baskets, and 4 out of every 5 of those relationships had produced almost nothing.
The decision in front of me was not a strategy question. It was an emotional one. Stopping meant walking away from 800 people I had been showing up for, some of them for years. I felt guilty about it for weeks before I did it.
We cut them anyway.
Revenue started climbing almost immediately. Not because we worked harder. We worked less. My salesperson stopped running herself into the ground and started spending that time on the 200, which meant she knew their names, their pain points, their busy seasons. They sent us more.
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If you have a version of the 800 sitting in your business right now and you have never gone looking for it, that is the work we do on September 24th. Save your seat →
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Here is what nobody tells you about running a business at a million dollars.
Somewhere on the way up, effort stops being the variable. Below a certain size, working harder fixes almost everything. Slow month, more outreach. Soft quarter, more hours. You built the business on that, and it worked, which is exactly why it is so hard to see when it stops working.
Past that point, the difference between hitting your number and missing it is 4 or 5 decisions that nobody makes on purpose. Which offer you push. What you charge. Which relationships you feed. What you stop doing.
I call the last one the 800, because every established business has one. It is a set of activities, offers, channels, or relationships that were true once and are not true now. They are almost impossible to spot from the inside, because they are not failing. They are producing something. Just not enough to justify what they cost you.
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Effort will never surface your 800. Effort protects it.
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The busier you are, the more the whole thing looks equally necessary.
Your numbers surface it in about 20 minutes.
You already have the numbers. You have inquiries somewhere in your inbox, consults somewhere on your calendar, clients somewhere in your books, and an average client value you could calculate right now. What you have never done is put them in a line, run them backward from what you want, and let them tell you where the business is being carried.
That is not a spreadsheet exercise. It is the difference between a goal you are carrying around and a plan you are working.
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What the practice produced
| 2012 Started running my numbers quarterly with two other owners |
| 2012 Left for 30 days in an RV. Came back to a business that had grown |
| 2017 Sold the franchise working 16 hours a week |
| Lowest caregiver turnover in my entire franchise network |
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None of that came from a mindset shift. It came from knowing which 200 mattered and having the nerve to cut the rest.
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On Thursday, September 24th I'm running Planning for Profit, and this quarter it is free. Three hours, live, where you pull your own numbers and build your entire Q4 in the room. Not notes. The finished plan.
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Registration opened this morning.
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Planning for Profit
Thursday, September 24th · 12:00 to 3:00pm ET Free. Replay included.
You walk out at 3:00 with
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One Q4 goal you chose on purpose, instead of one you inherited from a January document |
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That goal broken into the inquiries, consults, and clients it requires |
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A straight answer on whether it is realistic as written, and what has to change if it is not |
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The daily and weekly actions, mapped across all thirteen weeks |
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If you have a strong business and a quarter that still somehow just happens to you, this room is for you.
If you know your numbers exist but you have never used them to decide anything, this room is for you.
If you are about to walk into Q4 carrying a number you have never run the math on, this room is very much for you.
I'll meet you there.
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Remember to live your one life!
πSailynn...
Business Strategist for Service-Based Women Owners Founder of Simply Rich dba Passion Purpose Posture
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P.S. I did not find the 800 by thinking harder about my business. I had been thinking about my business constantly for 5 years. I found it the first time I sat down with two other owners and ran the numbers on purpose, which is the only reason I have run this every quarter since. September 24th is that room. Save your seat →
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