Do you have a good plan in place for your business as 2019 looms over the horizon? Are your goals and plans achievable or are they too lofty? Are they challenging enough or too easy to obtain? On this episode of The Amazing Seller, you’ll hear from Scott as he explains his approach to creating a business plan, why it's important to take action ASAP, and so much more. If you are ready to up your game and get the most of your efforts for the coming year, this is the episode for you! Have pen and paper ready; you are going to need it!
Successful leaders make a plan.
Have you ever found yourself wondering how certain business leaders get to the level of fame and fortune they enjoy? Did they inherit money? Were they lucky? Did they pull themselves up by their bootstraps? Each successful leader is going to have a different aspect of their story, but all leaders who continue to succeed do so because they’ve got a plan in place. Do you have your plan figured out? Have you written it out yet? Why not place it on the refrigerator door? If you have any hope of making it big with your ecommerce business, you’ve got to make sure your plan is front and center! Learn more about the value of planning from Scott on this episode of The Amazing Seller; you don’t want to miss it!
Scott’s five step plan.
Even if you have a plan in place, it is always helpful to review that plan and see if there are ways you can adjust it, so it fits in that sweet spot between challenging and attainable. To give you a good reference point, Scott has laid out his five steps for creating a business plan.
- Identify your target for the year. What is your net profit goal?
- Work the numbers backward to come up with what you need to bring in each day.
- Come up with a plan. What can you do to get it done?
- Find 3 to 5 products with $10 profit margins.
- Launch three products in six months and three more products by the eight-month mark.
This five-step plan from Scott is only a starting point. Make it your own, play with it, just get started! Don’t put it off or hope to get it done at some point, do it today! What do you have to lose? To hear more from Scott about this critical topic, make sure to listen to this episode of The Amazing Seller!
Don’t miss Brand Accelerator Live!
Do you have your tickets for Brand Accelerator Live yet? What are you waiting for? This is the one ecommerce event that you’ve got to make time to attend in 2019! Don’t let excuses get in your way; you need to invest in your growth as a leader. Connecting with Scott’s content and the fantastic TAS community could be just the thing your brand needs to move past the competition. If you get on the ball and sign up right now, you’ll be able to catch the early bird pricing! Get more information in the resources section at the end of this post!
OUTLINE OF THIS EPISODE OF THE AMAZING SELLER
- [0:35] Scott’s introduction to this episode of the podcast!
- [2:45] Why you need to check out Brand Accelerator Live.
- [4:20] Scott launches into his 5 steps to creating your business plan.
- [14:30] What is your plan for 2019?
- [18:30] Closing thoughts from Scott.
TRANSCRIPT TAS 612
TAS 612: 5 Steps to Creating Your Business Plan to ACHIEVE Your Goals
[00:00:03] Scott: Well hey, hey what’s up everyone! Welcome back to another episode of The Amazing Seller Podcast. This is episode number 612 and today we're going to be talking about…
[read more=”Read full transcript…” less=”Read less”]
…five steps to creating your business plan to achieve your goals and yes we're doing this the day after Christmas if you're listening to this on the day that airs and if you're listening to this in June or July, well this is still going to help you. You know how we always get these great ideas as far as like the first of the year, it's a clean slate. We get to start over. Why can't we do that in June or July or middle of May?
Like we always feel like we have to wait till Monday, I’m going to start that diet. Actually, I've done that plenty of times by the way. I don't know, it's just like something in our head and in our mind that we think we have to wait in order to start. We don't have to. We really don't. It's just, it's our inner self that's saying not to do it because we just don't want to commit to it yet. But we can commit to it. Now, if you're listening to this the day after Christmas and you celebrate Christmas, Merry Christmas. And if not, and if you are just celebrating the holidays, or just celebrating life and being alive, I'm all for that.
I think we all should celebrate having the opportunity that we have right now to be able to wake up every morning and walk out of our bedroom and actually do something for ourselves and for other people. And our businesses are serving other people by the way. I don't care if you're selling a bass fishing lure to help someone catch more bass or if you're… Maybe you're an organizational person by helping people be more organized in your life and you actually have products that also help them with that. Like that's a good thing.
So, all right that's what we're going to talk about today though because I think it's obviously it's time. Like right now it's approaching the first of the year and everyone is going to be doing this. So I want to give you that five step plan that I go through whenever I'm trying to figure out that target and that's the key here.
[00:02:03] Scott: It's we have to have a target to shoot for. I get a lot of people that say this is going to be the year that I'm going to make it all happen and I'm going to make a million bucks and that's going to solve all my problems. But they don't know if that's actually the number they have to hit. Or maybe that's too big of a goal, maybe don't have to hit that. So I'm going to talk about that. But I want to reverse engineer like your situation or at least give you the framework to do that.
So, now before I do jump into that because we are approaching the new year of 2019 depending on when you're listening to this is I want to remind you that Brand Accelerator Live 2019 is going to be happening in September of 2019. Now, there's two reasons that you should run over to brandacceleratorlive.com or theamazingseller.com/live like right now is because we are going to give you a discount on your tickets depending on when you're listening to this. Right now before the first of the year there are going to be discounted tickets.
So if you wanted to attend Brand Accelerator Live in Texas then go over there and grab yourself a ticket. It's going to be awesome, if you're all about building a real business and a future proof business and you're in it for the long haul this event is going to be for you. There's going to be some amazing people there. Some people I haven’t even announced yet which I'm super excited to be spending some time with. It's going to be a small event, it's going to be 250, maybe 300 depending, we got to see the venue, make sure that we can fit that many.
But definitely 250 and it will be limited. Grab your ticket if you haven't done so already. So that's reason number one. Reason number two is if you purchase before the end of 2018, I believe and I'm not an accountant but I'm pretty sure that it's a tax deduction if you are building a business because it's a business expense. But you might want to check with your accountant on that one. But I'm pretty sure it is. So definitely go check out Brand Accelerator Live. I'd love for you to be there and love for you to be able to attend. Also surround yourself with these like-minded people in TAS and I am just super excited to be able to be spending some time with all of you guys in Texas.
[00:04:07] Scott: So definitely go grab your ticket. Those are the two reasons to go take action like right now. Now, let's just roll our sleeves up and let's get to work. So the five steps to creating your business plan to achieve your goals is right here in five steps. So I'm just going to dig right in. Number one, the number thing I want you to ask yourself and you might even want to sit down, and if you're driving, don't do this while you're driving. You can think through it but you're really going to need a piece of paper and a pen and to really start going through these numbers.
I love sitting down with my yellow legal pad and kind of doing this stuff so if you want to play along use that notepad to do this. It's also something to look back and reflect on and go oh wow, that's all I needed back then. Now, I'm going for more. It's really cool to see your growth.
Number one, what is your target for 2019? If you're listening to this in 2020, what's your target? Like that's what we're looking at. And I mean net profit. What do you want to earn? If you're earning right now, $100,000 a year at your job you're not necessarily bringing that home. So if it is $100,000 you have to make because after taxes you're going to make $75,000 or $80,000 figure out that number. Figure out that number. What is your target? Write that down.
Now, you might have to go through even your expenses right now and actually see what that is because a lot of times if you're living pay check to pay check or like one week at a time, you might need to actually out what those numbers are.
What would it be to be comfortable? Like if that is… Again, we're looking at financial here. If you're looking at your financial goal what is it? What is that target? Write that thing down. And number two now, now we have that number, we can't do anything unless we have that number. We need that number. That's important. That's step one.
[00:06:01] Scott: Step number two is we need to work backwards with that number. So I'm going to use $100,000 because it's an easy number to use. And I don't know, maybe $100,000 is more than you would need. But maybe $100,000 isn't enough. Well figure out your number. But $100,000 a year we're talking profit from the business but that also could mean $100,000 is what you would receive and then you'd have to pay taxes on that. Okay so however you want to interpret that. But 100 grand is what we're going to look at.
So $100k, that's six figures. So $100,000 divided by 52 weeks gives us, and if my math is correct here, $1,924 per week. That's what it is on a weekly basis. Now, we want to go one step further and say okay, what is that for a day? So I came up with $275. So if we did the math on that we should come up to $1,924 for the week it's $275 a day. So now we've got that number.
Now what we need to do is take that number and number three here is how to make $275 a day. Like how to do it. Okay, there could be a whole bunch of different ways you can do it.
You can say well I'm going to start my private label business and I'm going to get that up to where it's $175 a day. But then I'm going to get another $100 from just selling random stuff on eBay. I don’t know what your plan is. I think you've got to come up with that plan and there will definitely be some episodes here coming up that's going to help you with that. Actually, I have one coming up which I'll talk a little bit here later about ten steps for building your future proof business in 2019 and beyond. You're definitely going to want to pay attention to that one.
But you just have to know that number. Like so many people just go, ‘Oh, I want to make X because it sounds cool. It sounds like it'd be enough.’ You have to get crystal clear with what you're doing and how you're going to get there because if you know what it is then you have a target. If we have a target we can then focus on getting there.
[00:08:01] Scott: Now, if we were using just selling on Amazon because that's how we're generally starting, it's our quickest way to start bringing in some revenue and I've talked about this in the last episode, where I said there's really like to me there's two parts of the business, two phases. There's a short term and there's a long term. And the short term could once you figure out the market, you've niched down and you got that stuff dialed in, you have three to five products you're going to launch first on Amazon but in the background you're going to be building the content side of things.
And really starting to get that organic traffic built up over the next 12 to 18 months. So then you can start monetizing that. You can also start pushing that traffic to your other assets. But that's again, for another conversation. But obviously we want to start and try to bring in some revenue as quick as possible. So I came up with 27.5 units per day at $10 profit. Now, if your products are doing $8 profit, then that number is going to go up a little bit. If you're at $12 profit, then the number can go down a little bit but you get the idea.
All I'm doing is just doing a lot of like multiplication and division. Like that's it. Basic math. So how to make $275 a day, that's what we got to figure out. How many units do we need to sell at $10 profit? It's 27.5 units. If we have one product that might a little tough at first so maybe we need two products. And again, this is just saying we're only going to be using Amazon as the vehicle right now to allow us to do it. We may say, all right we're going to do… We need to sell 20 units or 15 units and then we're going to maybe do some retail arbitrage over on the side.
Or maybe we're going to do just some eBay. We're going to do some thrifting or whatever it is. To me to get to $275 a day that shouldn't be hard. There's ways of doing it, multiple ways. It could be writing a kindle book and getting that up and running. And that's a lead gen now and also you're going to get another, maybe you're going to get another $400 a month or $500 a month from revenue there that also supports the brand. That's why you want these other assets which again, I'm not going to talk all about right now.
[00:10:00] Scott: But you get the idea. We just need other ways to bring income into the business. But we're just using this one way. And I'd probably have a few different ideas like if you started building content and that content took off it might not take 12 months or 18 months to start getting traffic where you're now monetizing that traffic and you're getting 500 bucks a month in ad revenue. Like who knows? Maybe that happens, but you got to put that stuff in play in order for it to happen. But you need to plan.
So that's number three.
Number four if we're going to go with that model is find three to five products with a $10 profit margin. That's number four. Now, obviously you got to do the work to find the products. You got to do the work to source the products. You got to do the work to launch the products and all of that stuff. But that's what we got to do. It's not that it can't be done it just has to be done. It's like one of those things like oh, has it ever been done before? Yeah, it's been done a lot. Like how many people have made a million dollars a year selling stuff online? A lot.
How many people have made $100,000 online a year? Even more. So it's not like it's out of reach. Just means you got to actually do it. So and I'm just using this as one vehicle like I said. Amazon it's a great platform to start a great, a great platform to start almost immediately getting revenue coming back into the business. Now you can take that money and then refuel it and add more gas to the fire. Those types of things, the content sides of things is usually going to take a little bit longer. So that's why we have two phases to building out these businesses.
Number five, is launch those products in six months. And then by the eighth month mark three extra products. So out of those six products I should be able to find maybe two that could bring me in my $275. So you see what's happening here? Like I need to sell… Let's make it easy, 30 units a day. That means I would need three products that sell 10 a day. That would be that math.
[00:12:05] Scott: Or maybe I have one that does 20 a day and the other one does 10 and the other one doesn't do well so I kill it. So you have to put other products out there. In the new brand that we've been building now we've launched products. Some did okay and then the other ones we just killed because we just ran through the inventory because either there was too much competition coming in and we didn't want to compete in that area or maybe it was a low ticket price that we just wanted to get out there.
And while it was hot we would use it and then we'd just liquidate it. There's other reasons as to why we did it but we also were able to discover holy crap, like there's this one product that if we did three other variations we'd probably do even better. Like we have one product right now that started with one SKU and now it has let's see, five different variations from one product. And those collectively are selling way more than ten per day. So one day you might have one that does ten and another of those variations does two and another one does three and another one does five.
But the it could flip. Then the following day you might have the one that only did three the day before does eight. So it is a numbers game in a sense but you don't want to get overwhelmed with having to do a ton of products. That's why I like to start with three, like three definite products that we know we can launch. They don't have to be all launched together. I don't think you should. Should be one, but then you should have another one right in line to go after that once you get through the first launch. So anyway, launch three products in six months.
And then three additional products by the eighth month mark. So that would be a total of six products. This is just a goal. This is just like a plan. Things are going to change. We're going to launch product two and it's going to maybe take off and maybe we're like, all right, let's just back off a little bit. Let's keep massaging this stuff over here and keep it going. And then we'll do the third product.
[00:14:01] Scott: Maybe you only have the three products and that gets you to where you want to go. But this is just a plan. We haven't put it into action yet. Things are going to change once we get the first product launched. And then the second product. So things are going to change. Maybe as we're doing the content, we're starting to see a bunch of traffic coming in. We like oh, cool. We’re going to do ads now. Now, we're going to run ads on our blog. Now we're going to bring some money in that way. So there's a whole bunch of different things that you can do.
But you need to start with that target. Let's recap that real quick.
Number one, what is your target for 2019? Your net profit before taxes. So many people look at it like I just want to make this and then they're like, ‘Oh Scott, is that with taxes?’ If you were to earn money at your job, like you're bringing in money so you can pay your bills, what is that number? If that's the number then add 25% or whatever your tax bracket is to the number. But I'm just using $100,000.
Number two, work the numbers backwards. Very simple. And so we would just take $100,000. We divided it by 52 weeks and then from there we would divide that number into seven days. That would give us $275 per day profit that we need.
And then three, how do you actually make the $275. Well, you got to come up with a plan. What kind of things can you do? Again, like I said in the beginning you don't have the product and you want to fuel that business a little bit. Well, you probably got time. Well some people say they don't have time. I believe everyone has that time.
Everyone has 24 hours. It's just how we use them. But hey, go out on a Saturday and just go look for some different items that you can sell on eBay. That's it, or maybe clean out your attic or your mother in law's attic or whatever.
Like do something, so this way here you can start bringing in money into the business because once you have money coming into the business you can do more fun things. So that's that.
Number four, find three to five products with $10 profit margins. Again, play with this. If you find a product that gets $25 profit, well you got to sell this product.
[00:16:03] Scott: You sell one or two.
Then number five, launch three products in six months plus three products by the eighth month mark. So add another three products. Now again, guys this is a plan that I just kind of came up with quick. This doesn't mean this is going to fit everyone's thing. So you got to figure out your thing. And I think so many people want like this template or they want this one click solution. That doesn't exist. You have to go out there and create something. And here is the thing. You, you personally you have to create your plan. You have to stick to it. You have to continually put in the work.
And just stay focused on the target and this is why I'm so, so passionate about having people go after a market versus after a product. Because so many things become easier when we can go laser focused on our market in serving the market and giving our market what they want and what they need. If you missed the last episode, 611 I did talk about niching down. You probably want to listen to that one as well. Because that one there will allow you to start getting the idea and hearing again how I'm looking at building these businesses in the future.
A lot of what we're doing here I'm just taking the two models and kind of bringing them together. I've done the brick and mortar thing. My photography business done that. And then I moved into the online space, selling some physical products in the very beginning in my wood bridge story which we made enough money to put our kids through private school which was pretty awesome and that taught me about eBay selling and just physical products in general. But then the digital side of things, the content side of things, building an audience, getting attention, like all that stuff.
And then I stumbled on Amazon FBA and then I seen how awesome of a vehicle that is to launch products pretty quickly that serve a market. So now I’m kind of taking those two and bringing them together. And now because I've kind of been through that journey I've done it multiple times and I'm doing it right now with a lot of my Inner Circle members.
[00:18:08] Scott: Right now they're crushing it with content and doing some Amazing things. But it really comes down to these two pieces or these two phases. So definitely, definitely consider sitting down and creating that plan, focus on it and take consistent action. Just please, do that. The other thing is if you want to hang out with us and do this, go to brand accelerator live in September. It's going to be awesome. There's no reason that you shouldn't attend.
If you want to invest in your business and in yourself that is the place that you're going to want to be because this is going to be the discussion for two full days. Now I got some really cool people that are going to be teaching but also showing what they've done. And then other people that are going to be there that you're going to be able to mingle with can help and share and network and so much that happens at a live conference. And the reason why I decided to do brand accelerator live to be honest with you is because I had so many people come up to me and go, ‘Scott, what's the next event I should go to?'
I might have been at Sellers Summit which is a great event. I think everyone should attend that event. But they're like, ‘What's the next one? What's the next Amazon event?' And I'm like, ‘There isn't really one. There's a lot of them out there but I don't think that's what you need. What I think you need is to know how to do more digital marketing. How to get attention. How to build a brand.’ Then yes. Take your stuff that's already working right now on Amazon and make it better and optimized and make it more future proof.
And that's where Brand Accelerator Live came from. So if you haven't grabbed your ticket yet head on over to brandacceleratorlive.com or theamazingseller.com/live. And like I said, there's two reasons you should do that right now other than it's going to be an amazing event. Number one, well it's going to be the lowest the tickets will be available for while the early bird is open.
[00:20:02] Scott: And then also it's a great time to make an investment in your business because tax season is coming up. So why not get it in in the 2018 season or year?
All right, that's it guys. That is going to wrap up this episode. The show notes can be found at theamazingseller.com/612.
Remember, create your plan, focus and take action. All right guys, that's it. That's going to wrap it up.
As always remember, I'm here for you, I believe in you and I am rooting for you. But you have to, you have to… Come on say it with me, say it loud, say it proud, “Take action.” Have an awesome, amazing day and I’ll see you right back here on the next episode.
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