Running a business without tracking your numbers is just as bad as driving a car with the back of your head.
Speaker BIn this episode, we are looking into business numbers metrics, KPIs, whatever name you want to call those numbers we use in our business to track that.
Speaker BWe are moving, growing our business, moving it forward, what we need to do, where we should put our focus and what to fix in our business to get the business we want.
Speaker AYeah.
Speaker ASuch an important subject that so many people, and I've met people who are actually doing quite well in business who rejects this.
Speaker ALike, I'm not a numbers person, so I don't understand numbers.
Speaker AAnd if you're one of those, and I'm not speaking to you, I'm speaking to you.
Speaker AIf you're one of those in the audience who feel that numbers are tricky and hard, let's just be okay with you not being that into numbers yet.
Speaker AAnd then we'll break it down and make it super simple.
Speaker ABecause when it comes to math running a business, it's not complicated.
Speaker ASo let's just keep an open mind and just realize that if we could run our business more effectively and make more money doing the exact same stuff, it could be the difference between you being able to build your lifestyle of your business than working really hard, tearing and ripping your.
Speaker AYour hair apart.
Speaker BY.
Speaker BI like the numbers and I want you to understand this episode is an episode where we'll go through a lot of different numbers, but we'll also go through why they're important, what is it they're teaching us.
Speaker BSo we go rather fast forward like through.
Speaker BIt means that it's a good idea to download this episode, go back to it several times, market and go back to it several times.
Speaker BAnd I think it's important that we already right now say if you go into our YouTube channel, you can download the complete business tracker.
Speaker AIt's a business method metrics tracker template.
Speaker BExactly.
Speaker AAnd that was the first time I said it correctly.
Speaker AIt's a mouthful.
Speaker BYeah, but.
Speaker AYeah, but it says exactly what it is and you have it on YouTube.
Speaker AMake sure that you just get yourself to the beyond coaching podcast on YouTube.
Speaker AJust search for Beyond Coaching and download it.
Speaker AAnd keep in mind that you can revisit this episode again and again and again and do it on at the different stages of where your business is at.
Speaker BLet's start by talking about some stories that might occur about business number.
Speaker BFirst thing is I'm, I'm just started up.
Speaker BI might.
Speaker BBusiness is way too small for business.
Speaker BNumbers are for numbers making any Sense.
Speaker AFor me, I hear that as well.
Speaker AAnd what happens when we say that is that we are not tracking numbers, which means that we are not focusing on the thing that moves the needle.
Speaker AYeah, everything about moving the needle is a business has to do with numbers.
Speaker AAnd the moment I realized, and this was.
Speaker AThis was said to me by a very clever man, Keith Cunningham.
Speaker ASo he said that numbers is the language of business.
Speaker AAnd the moment he said that, it made so much sense to me.
Speaker AAnd I hadn't thought about it before, and it's not a big revelation, but it's so true, especially for someone who is growing their business and working really hard to kind of get their coaching business started.
Speaker AIf you can realize that it's the language of business, what if you don't speak that language?
Speaker AWhat if you're not just used to that language yet?
Speaker AIt's a language to learn, just as if you've learned one language, you've learned English.
Speaker AOtherwise, this podcast doesn't make sense for you.
Speaker ASo if you can just apply the same kind of mindset to it, that it's something to learn and you.
Speaker AYou don't have to rush it and you take it one step at a time.
Speaker AAnd this podcast episode can be your first kind of steps into it.
Speaker ABut I totally agree that that's one of the biggest ones that that is.
Speaker AEither my business is too small or numbers doesn't speak to me.
Speaker ANumbers and I aren't friends.
Speaker BIt's not.
Speaker BIt's not my thing, so I don't do it.
Speaker BSo what happens if we are not tracking numbers is that we are blindfolded in our business.
Speaker BWe don't know where to focus because it's easy to get stuck in.
Speaker BI feel like it's going good.
Speaker BIt feels like I'm doing the right thing.
Speaker BThere's a lot of feelings, or I think.
Speaker BAnd as soon as you go to talking about feelings or thinking, then you're away from one thing, and that's knowing.
Speaker BIn business, you should not think or feel.
Speaker BYou should know.
Speaker AIt just comes to my mind because it's.
Speaker AIt's a great example.
Speaker AIt's like doing orientation or being in the mountain, and you do not have a sense of direction.
Speaker AYeah, that's the same thing.
Speaker AIt's like it's navigating without a compass and a map.
Speaker AYeah, that's what it is.
Speaker AAnd then you can feel whatever you want about it.
Speaker AIt feels like this is the right way to walk.
Speaker AYeah, sure.
Speaker ATry it out.
Speaker AThe worst thing that can happen is that you die.
Speaker BNow the Best thing is you probably get there, but you probably won't get to the like to the goal as fast as you could because you're going to do a lot of de routes on the way.
Speaker ADefinitely.
Speaker AAnd if you're doing this in nature, it's you who dies.
Speaker AIf you're doing this in business, unfortunately, it's your business that d.
Speaker AYeah, but it really does.
Speaker AAnd 96% of businesses die within the first 10 years.
Speaker AAnd the reasons for that is because it wasn't anyone who navigated them.
Speaker BSo we use the numbers when we evaluate, when we look into where should we focus, what is the thing that doesn't work in our business?
Speaker BWhat should we learn?
Speaker BWhere should we dive into?
Speaker BFind out what is lacking or what needs to be reset or changed in our business.
Speaker BSo we use it for evaluation.
Speaker BWe use it for, to make sure we're moving in the right direction.
Speaker BSo it tells us where to focus and it will show us where we are leaking in the business, in our funnel, in our pipelines.
Speaker BSo, so it's easy for us to go into the exact point that is leaking and change just that thing.
Speaker BWhen you do not have that, I hear people say, well, I've used this strategy and it didn't work.
Speaker BI need to do something completely else.
Speaker BThat means that people will literally throw away a complete strategy without even knowing.
Speaker BIt might just be one small thing within the strategy that needed a tweak in order for that thing to work.
Speaker BBut they throw everything away because the only thing they have to measure is did I get the clients, did I get the revenue or not?
Speaker BNot the small pieces of why, why didn't I do that?
Speaker BAnd when you change everything because you didn't get the result you want, you change everything.
Speaker BUnfortunately, you will go to another strategy and you'll experience the same result because you are not knowing exactly what is the problem.
Speaker BSo that's what we're going to figure out.
Speaker AWe're going to figure it out and we're going to, we're going to map it out tonight.
Speaker AI think this is so valuable because if we do not have this structure of what to measure and it's a bit different starting out and then growing into it, which the template will show you what to track at what level.
Speaker AAnd as your business grows, you're going to be able to see new opportunities in your business as you, as you earn more money.
Speaker ALet's, let's, let's into the first subject area.
Speaker BSo we put into the tracker, we put it in, in two different columns.
Speaker BIf you are new coach doing less than 10k euros monthly.
Speaker BYou'd look into the new coach space and those of you doing more than 10k k a month, we have another one.
Speaker BAnd then there will be some numbers that is even too early to start tracking.
Speaker BAt 10, you, you probably get to 30k before you start tracking those numbers.
Speaker BSo numbers will change because when you're just starting up, it's probably one person show.
Speaker BIt's probably you who are doing everything.
Speaker BIt's probably you who are running everything, tracking everything.
Speaker BAnd it seems like.
Speaker BBut I don't need to track everything because I know I already got the insights, I'm doing everything.
Speaker BBut if you want to grow your business and at one point it should be able to grow, you need to have a team and imagine you not having any numbers and giving away your business to a team to run without any numbers.
Speaker BYou no one has a clue what's going on and what is the right thing.
Speaker BWhen is it good, when is it not good?
Speaker BSo start by tracking numbers.
Speaker BEven when you just started out and you don't have a team, it'd be so much easier to give it away to a team and keep developing as you grow and as you have an organization and a team around you.
Speaker BAnd then we also put it into some different areas.
Speaker BIn business we have marketing, we have sales, we have our delivery and we have the overall business numbers to track.
Speaker ASo where do you say, where do you think we should start marketing?
Speaker BIt's the first part of the business we start marketing and the first one we have for is the number of leads.
Speaker BSo yeah, we need to know how many leads are we getting in and when we track which we get on a monthly basis.
Speaker BYou don't need to track on a on a weekly basis until you are way ahead.
Speaker BBut right now we look into monthly basis.
Speaker BHow many leads did you get into your funnel?
Speaker BSo if we make it simple, we say a lead is your avatar that has come into your funnel and can be on your socials, it can be on your email list, it can be everywhere.
Speaker BBut we growing that then I also have the next one.
Speaker BHow many offers am I giving out?
Speaker BThis is especially for the new people to, to track how many people am I actually given an offer and what could be an offer to.
Speaker AAll right, because that's so important.
Speaker ABecause an offer is not necessarily buy my coaching or book a call with me straight out of the gate.
Speaker AAn offer could be anything from a free giveaway, a template, it could be a free Facebook group, it could be anything.
Speaker AThat allows them to say yes.
Speaker AYes, I would love that.
Speaker BIt could be an offer to a sales event, it could be an offer to a sales call, it could be an offer to different things.
Speaker BBut we want to make sure we put out offers.
Speaker BThis number will let us know am I having a conversation that is leading them forward or am I just chit chatting, talking like becoming friends.
Speaker BSo it's making sure I'm moving forward in my funnel, not just standing still.
Speaker BSo then we also have if you are running these events, how many participants are you getting to say yes and register?
Speaker AYeah.
Speaker ASo there are registrations and then there is how many people actually shows up when the event happens.
Speaker BYeah.
Speaker AThose numbers are never the same.
Speaker BWe want to know how many people do we get to our events?
Speaker BHow many show up at least.
Speaker BBut then let's look at those people who are doing more than 10k a month still in marketing.
Speaker BThey still need to do the same things as everyone else.
Speaker BBut we want to add a little thing because we really want to understand what is our engagement rate on our content.
Speaker BWe use mostly organic content.
Speaker BWe want to make sure we use organic content at least up to 10, 10, 20k a month and then we.
Speaker ACan close it closer to 20k rather than anything else so that we build up a social proof.
Speaker BSo engagement where it becomes important at this point because your marketing in the beginning is just about getting marketing, getting, getting people to engage.
Speaker BBut right now we want to track our content so we know what works, what does not work and that is even on our email how many opens and engages replies and click the click through rate.
Speaker BSo eng engagement rates on our marketing.
Speaker BAnd when we start running ads we want to know our cpl.
Speaker AYeah.
Speaker BCost per lead.
Speaker ACost per lead.
Speaker BYeah.
Speaker BHow much does it cost us to get a lead?
Speaker ASo it shows us the quality of our ad.
Speaker AIf we are actually getting conversions to a decent, to a decent rate and it differs a little bit depending on the type of ad, then we want.
Speaker BTo see like from month to month, can I do it better and better and better.
Speaker BIs it going the right way?
Speaker BGreat.
Speaker BSo I think we have some good numbers here in marketing.
Speaker BLet's, let's take a look into the sales.
Speaker BI'm going to go back to people who are doing less than 10 months and the first one is the number of sales calls I'm getting.
Speaker AYeah.
Speaker ASo booked calls, book calls.
Speaker BWhat would you say about that number?
Speaker BWhy is that an important number to know?
Speaker ABecause if we reverse engineer a business, if we have a goal of I want to Earn this much money.
Speaker AAnd then we reverse engineer it.
Speaker AIt comes down to, I need this many sales calls in order to get this many clients.
Speaker AIn order to get this much revenue, we need to track it, because at the end of it, we want to see it fulfill a bigger goal.
Speaker BYeah.
Speaker BAnd which is why it's so connected to the next number we have on our list, and that is the conversion rate in percentages.
Speaker BWe want to know how, how efficient the conversion rate is, telling you two different things.
Speaker BFirst of all, those people who show up, how many of those are becoming clients?
Speaker BSo if you go through the last 10 sales calls you had, how many became clients?
Speaker BIf you got four clients out of last 10 sales calls, you had 40%.
Speaker AConversion rate, which should be your benchmark.
Speaker AJust FYI, in the beginning of your business, starting out, the first time we're doing sales calls, you probably won't get there.
Speaker ABut 40% conversion rate is absolutely where you should be.
Speaker AAnd there are many different reasons to why you are not achieving it.
Speaker AIf you're not, it's the quality of the lead, which is that you've taken into account that you're speaking to the right person, that you've qualified them and invited them properly, and that you know that then, then you know that you have the right person on the phone.
Speaker AAnd then obviously it's the quality of the conversation on the actual call itself, which is a different training.
Speaker BYeah, definitely.
Speaker BNo, so that's very important because when, when you know that, if you know that 50% of the people you speak to will become clients, and you know, you want full clients, well, you know you need to have eight sales calls, which is why you can now track did I get my eight sales calls or didn't I?
Speaker BIf I did not, I need to ask myself, why did I not get that?
Speaker BAnd we look into this is why we need the numbers.
Speaker AAnd that point is so important because it's, it's in retrospect, when we need to know our numbers.
Speaker BYeah.
Speaker AIf you, if you felt that, why didn't I reach my goal this month?
Speaker AAnd it's like, it's because, because it's, it's, it's been feeling heavy.
Speaker ALike, sure, it might be true that it has been feeling heavy, but the reality is you can't learn much from that.
Speaker AOkay, so super cool.
Speaker AWhat are you going to do differently next month?
Speaker AWhat are you going to do in order to help you to feel lighter and happier and more energized and more, more passionate?
Speaker AThat's that, that's the importance that numbers can tell you, okay, I did my 10 sales calls but I didn't get four clients, so.
Speaker ABut that's what I should have gotten.
Speaker AI got two clients or maybe I got one client.
Speaker AOkay, cool.
Speaker ASo where's the thing that's off?
Speaker BYeah.
Speaker BAnd then we fix that.
Speaker BThen we have the monthly revenue in contracted sales.
Speaker BCan you explain what contracted sales is?
Speaker BAnd this is for the new people.
Speaker BSo why is this a very important number to.
Speaker ASo in the beginning when we're starting up a coaching business, it's super important that we're, we're counting the contracts that we've, that we have signed, not necessarily the cash collected in the bank.
Speaker ABecause when we're starting out, most coaches who are selling low to mid ticket offers between 2 and 4K should have two different payment options, either painful or a payment plan.
Speaker AAnd that payment plan should be with decent amounts of money each month.
Speaker ABut it means that you're not going to get the money into the bank right away.
Speaker ASo contracted sales mean that you're calculating and counting the full contract.
Speaker AThe reason why that is important is that we need to build momentum and a few.
Speaker AA contract signed is a future income.
Speaker ASo you are going to see that income in your bank account, but not necessarily the first month.
Speaker ABut the reason why it's important to calculate the contracted sales is because if you do that on a monthly basis, starting out until you make 10, 15 or maybe even 20k a month, then there is so much that we can do on the back end of that to get that money home.
Speaker ABut right now we need people, not a person, not someone that pays in full.
Speaker AWe need signed contracts over a continuum to participate in your program or in your coaching process.
Speaker BSo it's focusing on this sale and number of sales more how much in total am I going to make?
Speaker BAnd not all of the money will come in at this time.
Speaker BSo it's focusing on sales more than how much money do I get in?
Speaker BBecause I understand that a lot of clients have been feeling, well, it wasn't a good month and you asked them why.
Speaker BBut I only got this much cash collected saying, okay, so how many clients did you get?
Speaker BWell, I got four clients.
Speaker BHow many clients do you normally get in a month?
Speaker BWell, this is the first time I got four.
Speaker BSo they can grow their business getting more and more clients in, but feel like, oh, I only made this much money because they don't get into account.
Speaker BYeah, but you will make all the money.
Speaker BAnd next month, if you get four or five clients in next month, again it will start building up to a month recurring revenue.
Speaker BYou would get more and more money in even from last month's sale.
Speaker BSo yeah, it's just putting the focus right at this point in the business.
Speaker AYes.
Speaker AAnd get several clients into your business because that builds momentum, help helps you to become a better coach faster.
Speaker ABut I would also like to say, based on what you said, because it's so important that when we are starting up a coaching business and when we.
Speaker ALet's say that we get four clients a month, every month and all of them signs up for a, for a payment plan.
Speaker BYeah.
Speaker AAnd let's say that that pay is six months.
Speaker ASo every client pays it off over six months.
Speaker AAnd then we're going to talk about the next metrics.
Speaker AThat is not a part of this, that is standards.
Speaker ASo if we get four clients in every month and we get that month, 1, 2, 3, 4, 5 and 6 and then we continue to get it month, 7, 8, 9, 10, then what it's going to mean is that you are going to get monthly into your bank account the same amount of money as if everyone was paying in full.
Speaker ABecause it's going to build on each other.
Speaker AThe first month is going to be four people paying.
Speaker ANext month it's going to be eight people paying and then 12 people and then 16 and then 20.
Speaker AAnd then on the back end of that six months you're going to have those 20 clients paying that monthly commitment.
Speaker ACommitment every month.
Speaker AAnd you're going to see that it's going to level out.
Speaker BYeah, great.
Speaker BSo I'm going to move to the people doing a little bit more, adding some more metrics.
Speaker BThey still use the same metrics, but if you're doing above 10.
Speaker BOkay.
Speaker BYou definitely do want to know your show rate at your sales calls.
Speaker BAnd this matters more when, as you said before, when you invite more cold leads.
Speaker BThat could be if you invite them in from events, if you invite them in from ads.
Speaker BIf you have a team, a setup team who's booking people into your sales calls, then you need to look at your show rate so you know how efficient have they been qualified before the show?
Speaker BBecause if people do not show up, it's probably something in the qualifying piece before, before the sales call.
Speaker BWe also have the same things, but we added to.
Speaker BIf you're doing more, you probably have more sales events.
Speaker BThen we want to understand what is our conversion rate on our sales events.
Speaker BIf you have 50 people in your, in your channels, how many of those people become clients?
Speaker BBecause once you know, let's say you get five clients for every time you have 50 people in the room.
Speaker BThat's a 10% conversion rate.
Speaker BNow you just need to know again, a next number and that is the return on ad spend.
Speaker BSome of the people might be organically, but some might be paid to be there.
Speaker BAnd if you know how much do you make every time you get an event, how much do you make on ad spend?
Speaker BBecause ROAS is return on ad spend.
Speaker BHow much money do you make on ad spend?
Speaker BYour ad spend.
Speaker BNow you start having a machine.
Speaker BOnce you know that you can have a conversion rate that is in a specific place, you can start amplifying, you know, how much you can actually afford to pay for lead because, you know, where's your.
Speaker BWhere do you make the money?
Speaker AYeah.
Speaker ASo it's basically just calculating that I can spend millions in ads and still do well in business, even though that number is high because I am aware of how much money I'm making per person that went through my.
Speaker AMy ad.
Speaker BF.
Speaker BYes.
Speaker BGreat.
Speaker BThen we have cash collected and.
Speaker BCash collected.
Speaker BWe had a chat about that because cash collected.
Speaker BWhen should we start measuring cash collected?
Speaker ASo unofficially, right away, of course, because I mean, we need to pay our bills and we need to keep a close account to it.
Speaker ABut.
Speaker ABut when is it necessary for the business to focus on that, to focus on cash collected?
Speaker BWell, I think you don't necessarily need to do that at 10k but 30k month and above.
Speaker BYou want to know that because that number is telling you how good am I at getting the money from my clients.
Speaker BSo it will have you focusing on getting your money upfront, having more of your clients instead of paying on payment plan.
Speaker BWhat can I do to get them be paid in full?
Speaker BMake sure you actually get more cash into your business.
Speaker AThat's the main thing about tracking.
Speaker AWhatever you measure gets done.
Speaker BYeah.
Speaker ASo the moment you're starting to focus on cash collected is when you're going to become creative with.
Speaker AOkay, so what can I give.
Speaker AGive to the clients who pays in full?
Speaker AOkay, they're going to get this bonus and this bonus.
Speaker AThey're going to get an extra onboarding call or they're going to get an individual this thing.
Speaker AAnd the moment they experience that, it's.
Speaker AIt's a, like, it's a.
Speaker AIt's a different ball game.
Speaker BYes, absolutely.
Speaker BAnd then we have the monthly recurrent revenue.
Speaker BAnd that's actually what you spoke about before.
Speaker BWhen you have people keep paying on payment plan and you can see that payment plan that is working.
Speaker BCash is coming into Your bank account every month.
Speaker BAnd that keeps growing, growing, growing.
Speaker BThat is your monthly recurring revenue.
Speaker AYeah.
Speaker AAnd to break it down, it says itself monthly.
Speaker AThat means month, recurring means every month.
Speaker AAnd then revenue means, means money in.
Speaker ASo monthly recurring revenue is a very, very exciting thing to track because that's something that we want to see grow.
Speaker BYeah.
Speaker BBecause that's the one that I feel is the most important in terms of you sleeping good at night, knowing where, how much money you can invest in team and everything else.
Speaker BBecause you know you have that monthly recurring revenue.
Speaker BBecause in the beginning in the business you will definitely have some, some peaks and some lows and where you see get a lot of money in and then I don't get any money in.
Speaker BMonthly recurring revenue should be steady growing number.
Speaker BThat means that you always get at least this number.
Speaker BThat gives you security.
Speaker AAnd it's also the first indicator if something is going poorly.
Speaker AThat's the first number that is going to go down.
Speaker ASo you're going to see that the effect of whatever it is that we are doing is happening the way that we want it to.
Speaker BDefinitely.
Speaker BAnd that is all about those who come a little bit further.
Speaker BThen I have a number that's somewhere in between sales and delivery and for those people who come a little bit longer.
Speaker BSo 10k and above.
Speaker ACustomer lifetime values.
Speaker BYou're so right.
Speaker BSo what is customer lifetime value?
Speaker ACustomer lifetime value is also what it, what it sounds like.
Speaker AIt's the lifetime value of your customers and it's not based on one customer, but the easiest way.
Speaker AThere are metrics to figure it out, but it means that once they buy one thing, we obviously the cheapest way to grow a business is having the same person buy more stuff because they like it.
Speaker BYeah.
Speaker ASo if they want to consume more of your coaching, we want to have another offer for them.
Speaker ASo the customer lifetime value is calculated based on, let's say that you get a hundred clients in your door and you want to.
Speaker AThen you want to see with this, a hundred clients, how much are they spending on your coaching in a bundle.
Speaker ASo how much does all of them spend?
Speaker AAnd then you take that number of revenue and you divide it with a complete hundred people.
Speaker ASo you divide it across all of them, which means that some of the people that are going to come in are just going to buy the first program or one program.
Speaker ABut as we see the trend happening with a hundred people that some of them are going to buy more and some of them are even going to buy all of what you have because they just love it.
Speaker ASo much.
Speaker AThat means that you are going to be able to see, let's say that you have a 2k offer on the front end, they buy the first program that is €2,000, and then you're going to see with the customer lifetime value, after you've calculated this, you're going to see that the customer lifetime value is more than 2k because as they come in, they spend more money.
Speaker ASo that might be €3,000 or maybe even more, €5,000, €7,000, depending on if you're having a high ticket offer on the back end and do an ascension kind of thing where you sell them the first thing and then once they, once they recognize who you are and get to trust you, they buy your big thing.
Speaker ABut what's important about the customer lifetime value is that you can recognize that my customer lifetime value is €5,000, which means that you can know that every time someone buys something for 2k, that client is worth €5,000 over time.
Speaker BSo it tells you how efficient you are at upselling and it tells you how much money will I make per client that comes in.
Speaker BBut it also gives you, it's a very strategic number, I would say, because it also helps you say, okay, I might not sell the expensive stuff upfront, but if I just get people into my funnel in my low ticket.
Speaker BAnd when we speak low ticket, we're.
Speaker ASpeaking up to 4,2k.
Speaker AWhen you go above 5k, which you can in some industries, especially if you're, if you're selling to business owners that already makes a lot of money, we are considering a low, low ticket offer even at that point at 5, 6K.
Speaker BSo we're not speaking into the ultra low, low, low, low ticket that goes.
Speaker AIn three, the next to three stuff.
Speaker AThat's a marketing thing.
Speaker AHere's the statistic.
Speaker AIf someone buys something for a thousand euro, they're almost just as likely to spend 2k with you if they spend 1k.
Speaker AAnd because it comes to human psychology, and there is a very fun study that's called wallet psychology and it's, it's about where in their finances are they looking to, to financ.
Speaker AIf they're looking at €1,000 and €2,000, statistically they're looking in the same place in their financials, which is in their closest saving accounts.
Speaker AAnd if they have a thousand euros available, they are just as likely to have €2,000 available.
Speaker BAnd we're going to go into the numbers in our delivery phase and this is very different because for those people who are below 10k we only have one number because at that stage in your business your delivery is not your problem.
Speaker BWhere you should be focusing is marketing and sales.
Speaker BOnce you get above that, I will not even say 10k but you probably need to get to 20, 30k month.
Speaker BThen you need to measure more in your delivery because it is where you'll also make your money how good you are in delivery at this point.
Speaker BSo your delivery becomes as important as your marketing and sales.
Speaker BSo for people doing less than 10k, the only one we want to measure at this point is client completion rate.
Speaker BHow many of the clients who start my program ends my program goes all the way through sid and this is for them to for you to know that they like your program.
Speaker BDid they want to stick around to the end of it or did you lose them on the way?
Speaker BSo if we look at those people who come a little bit further, there's some other numbers.
Speaker BThere's one is session attendancy rate.
Speaker BIf you're running group calls for you to know and you have a lot of clients at the same time, the more clients you have, of course it becomes harder and harder with keeping track on how's everyone doing in my program, how's the well being of my clients.
Speaker BAnd one of the things the tracking numbers of understanding wellbeing is session attendancy rate.
Speaker BBecause if they start dropping out of your course, you also know that at some point they're probably going to stop in your program.
Speaker BYeah, you're going to, you're going to probably going to lose them if they do not show up.
Speaker BYou're probably going to lose them as well.
Speaker AYes.
Speaker BYeah.
Speaker BSo it's a first number too do to measure.
Speaker BThe second one number is the client progress metrics.
Speaker BSo client's progress metric is the number for you to track and that will be individual things you'll actually track depending on what niche you have.
Speaker BBut you need to track that they are actually progressing within your program.
Speaker AYeah, they're taking the necessary steps to.
Speaker BMove forward, steps to get the result you promised them at the end.
Speaker BSo it's kind of like from start to end where you have your promise of your program.
Speaker BWhat does that progress line look like and making sure you can track them moving forward, that they are doing good and they're getting towards the end of the program.
Speaker BWe have client retention rate.
Speaker BSo client retention rate is connected a little bit to customer lifetime value because it tells us, let's say they bought a six month program.
Speaker BIf you have a good client retention rate, it means that they want to continue Work with you after the six months.
Speaker BSo how good are you at keeping your clients after they, they, they went through the initial thing they bought?
Speaker BHow, how long, how many of the clients who started will continue and buy the next thing or buy the same thing again and stay there for a longer time.
Speaker BOn the other side of retention, we have churn.
Speaker AChurn.
Speaker AYeah.
Speaker AAnd churn is when a client decides to break the contract and le stops paying, disappears or asking for a refund or gets a refund.
Speaker BSo the churn rate will show you that first of all the clients, you have the right clients in your program, but it will also show you that you are doing the right things to keep the clients happy and progressing in your program.
Speaker BLet's say you're not focusing on the churn rate.
Speaker BIt doesn't really matter how many new leads, how many new clients you get in front end if you lose them on the back end.
Speaker BNo, it's not going to be a growing scaling business if you lose your client on the back end.
Speaker BSo we want to make sure we keep our churn rate down.
Speaker BAnd a good benchmark is 2% because there will always be clients that will drop out for some reason.
Speaker BBut a 2% like Ben is a good benchmark for your churn.
Speaker BAnd if you're doing that up to 2%, less than 2%, you're good.
Speaker BLet's go to some operational or standard business numbers.
Speaker BAnd these are numbers.
Speaker BAnd I would say at this point, if you are new doing this in 10k, don't waste your time tracking these things right now.
Speaker BJust go out and do some marketing and sales.
Speaker BThat is literally you should be focusing.
Speaker BSo this is for businesses that are doing more, especially when getting to the 30k and above.
Speaker BAnd one thing is cash flow.
Speaker BYou absolutely need to know your cash flow that people are paying, your clients actually paying.
Speaker BDo you get their cash flow into the business?
Speaker BThe cash flow is how much money that comes in, which means it is our revenue money coming in and then we have the profit margin.
Speaker BSo what we have left in the bank afterwards is our profit.
Speaker BWhen you have the revenue coming in, you have the operational expenses going out, then what you're left with is last number for us to track is the profit margin.
Speaker BHow much money are we actually keeping in the business to ourselves as the owners of the business?
Speaker AYeah.
Speaker BThat was a lot of things to go through.
Speaker BAnd as we said from the beginning, this probably is an episode for you to mark that go back to.
Speaker AYeah.
Speaker AAnd watch at different levels in your business.
Speaker BYes.
Speaker ABut if if there is one thing to take away from this, you need to start.
Speaker AIf you're not measuring and if you're not tracking your numbers already.
Speaker BYeah.
Speaker AThat needs to start now.
Speaker ANo matter how big or small your business is, I don't care.
Speaker ABecause it allows you to focus on the right thing that move the needle for you and allow you to make money faster.
Speaker AAnd this, this episode is, is all about making sure that you have a pleasant ride.
Speaker ABuilding your coaching business.
Speaker BYeah.
Speaker BAnd if you don't like numbers, I would say the best thing to do things you don't like doing it is first of all, accept that you need to do them.
Speaker BIt's not a discussion, do I want numbers or not?
Speaker BIf you have a business, you have numbers.
Speaker BSo it's rather about, do you want to care about your numbers or not?
Speaker BAnd if you want to grow a business, we absolutely suggest you care about your numbers.
Speaker BNumbers.
Speaker BAnd if you don't have that natural emotional sense of having fun with numbers, make it fun.
Speaker BIt's up to you to, to do the things that you don't like doing, but the things you need to do in your business and make it fun.
Speaker BLike have a good time doing it.
Speaker BSetting it up in a way that's easy for you to track and see and, and watch and, and have a good time doing it.
Speaker AYeah.
Speaker BDecide on, on making it a pleasant time and look at what this is actually moving my, my business forward in the right direction.
Speaker AYeah.
Speaker AAnd start small.
Speaker BYeah.
Speaker AYou know, if you're, if you're currently not measuring and the option is to either track everything or track nothing, then I would say fuck those options.
Speaker AAnd then, and then track the stuff that is easy for you to track so that you get going because it helps you to focus on the right thing.
Speaker BYeah.
Speaker ASo if, if that would be the case, then you can start just.
Speaker AIf you're a new coach and you're, you're.
Speaker AYou want to get more clients in, set a goal.
Speaker ASo how much money do you want to make monthly in contracted sales?
Speaker AAnd then focus on.
Speaker AOkay, so how many sales calls do I believe I need to do every month in order for that to happen?
Speaker AAnd then break that down into a weekly, weekly schedule because.
Speaker AAnd then track that.
Speaker AAnd then you can grow from that with the insights of what it makes and what it does for you.
Speaker ATracking that.
Speaker AThen you can go to the next thing and next thing, and then within two months, you will be up and running and it will be second nature to you.
Speaker BYeah.
Speaker BSo once again, download the business metric tracker template we have on our YouTube.
Speaker BMake sure you like and subscribe.
Speaker BAnd if you have any questions to us, find us on Instagram, ask us in YouTube or come in and join our group.
Speaker BSee you next time.
Speaker ASee you next time.
Speaker AHave a fantastic week of coaching.
Speaker ABye, guys.