Speaker A

Running a business without tracking your numbers is just as bad as driving a car with the back of your head.

Speaker B

In 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 B

We 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 A

Yeah.

Speaker A

Such an important subject that so many people, and I've met people who are actually doing quite well in business who rejects this.

Speaker A

Like, I'm not a numbers person, so I don't understand numbers.

Speaker A

And if you're one of those, and I'm not speaking to you, I'm speaking to you.

Speaker A

If 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 A

And then we'll break it down and make it super simple.

Speaker A

Because when it comes to math running a business, it's not complicated.

Speaker A

So 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 A

Your hair apart.

Speaker B

Y.

Speaker B

I 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 B

So we go rather fast forward like through.

Speaker B

It 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 B

And 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 A

It's a business method metrics tracker template.

Speaker B

Exactly.

Speaker A

And that was the first time I said it correctly.

Speaker A

It's a mouthful.

Speaker B

Yeah, but.

Speaker A

Yeah, but it says exactly what it is and you have it on YouTube.

Speaker A

Make sure that you just get yourself to the beyond coaching podcast on YouTube.

Speaker A

Just search for Beyond Coaching and download it.

Speaker A

And 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 B

Let's start by talking about some stories that might occur about business number.

Speaker B

First thing is I'm, I'm just started up.

Speaker B

I might.

Speaker B

Business is way too small for business.

Speaker B

Numbers are for numbers making any Sense.

Speaker A

For me, I hear that as well.

Speaker A

And 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 A

Yeah, everything about moving the needle is a business has to do with numbers.

Speaker A

And the moment I realized, and this was.

Speaker A

This was said to me by a very clever man, Keith Cunningham.

Speaker A

So he said that numbers is the language of business.

Speaker A

And the moment he said that, it made so much sense to me.

Speaker A

And 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 A

If you can realize that it's the language of business, what if you don't speak that language?

Speaker A

What if you're not just used to that language yet?

Speaker A

It's a language to learn, just as if you've learned one language, you've learned English.

Speaker A

Otherwise, this podcast doesn't make sense for you.

Speaker A

So if you can just apply the same kind of mindset to it, that it's something to learn and you.

Speaker A

You don't have to rush it and you take it one step at a time.

Speaker A

And this podcast episode can be your first kind of steps into it.

Speaker A

But I totally agree that that's one of the biggest ones that that is.

Speaker A

Either my business is too small or numbers doesn't speak to me.

Speaker A

Numbers and I aren't friends.

Speaker B

It's not.

Speaker B

It's not my thing, so I don't do it.

Speaker B

So what happens if we are not tracking numbers is that we are blindfolded in our business.

Speaker B

We don't know where to focus because it's easy to get stuck in.

Speaker B

I feel like it's going good.

Speaker B

It feels like I'm doing the right thing.

Speaker B

There's a lot of feelings, or I think.

Speaker B

And as soon as you go to talking about feelings or thinking, then you're away from one thing, and that's knowing.

Speaker B

In business, you should not think or feel.

Speaker B

You should know.

Speaker A

It just comes to my mind because it's.

Speaker A

It's a great example.

Speaker A

It's like doing orientation or being in the mountain, and you do not have a sense of direction.

Speaker A

Yeah, that's the same thing.

Speaker A

It's like it's navigating without a compass and a map.

Speaker A

Yeah, that's what it is.

Speaker A

And then you can feel whatever you want about it.

Speaker A

It feels like this is the right way to walk.

Speaker A

Yeah, sure.

Speaker A

Try it out.

Speaker A

The worst thing that can happen is that you die.

Speaker B

Now 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 A

Definitely.

Speaker A

And if you're doing this in nature, it's you who dies.

Speaker A

If you're doing this in business, unfortunately, it's your business that d.

Speaker A

Yeah, but it really does.

Speaker A

And 96% of businesses die within the first 10 years.

Speaker A

And the reasons for that is because it wasn't anyone who navigated them.

Speaker B

So 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 B

What should we learn?

Speaker B

Where should we dive into?

Speaker B

Find out what is lacking or what needs to be reset or changed in our business.

Speaker B

So we use it for evaluation.

Speaker B

We use it for, to make sure we're moving in the right direction.

Speaker B

So 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 B

So, so it's easy for us to go into the exact point that is leaking and change just that thing.

Speaker B

When you do not have that, I hear people say, well, I've used this strategy and it didn't work.

Speaker B

I need to do something completely else.

Speaker B

That means that people will literally throw away a complete strategy without even knowing.

Speaker B

It might just be one small thing within the strategy that needed a tweak in order for that thing to work.

Speaker B

But 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 B

Not the small pieces of why, why didn't I do that?

Speaker B

And when you change everything because you didn't get the result you want, you change everything.

Speaker B

Unfortunately, you will go to another strategy and you'll experience the same result because you are not knowing exactly what is the problem.

Speaker B

So that's what we're going to figure out.

Speaker A

We're going to figure it out and we're going to, we're going to map it out tonight.

Speaker A

I 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 A

And 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 A

Let's, let's, let's into the first subject area.

Speaker B

So we put into the tracker, we put it in, in two different columns.

Speaker B

If you are new coach doing less than 10k euros monthly.

Speaker B

You'd look into the new coach space and those of you doing more than 10k k a month, we have another one.

Speaker B

And then there will be some numbers that is even too early to start tracking.

Speaker B

At 10, you, you probably get to 30k before you start tracking those numbers.

Speaker B

So numbers will change because when you're just starting up, it's probably one person show.

Speaker B

It's probably you who are doing everything.

Speaker B

It's probably you who are running everything, tracking everything.

Speaker B

And it seems like.

Speaker B

But I don't need to track everything because I know I already got the insights, I'm doing everything.

Speaker B

But 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 B

You no one has a clue what's going on and what is the right thing.

Speaker B

When is it good, when is it not good?

Speaker B

So start by tracking numbers.

Speaker B

Even 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 B

And then we also put it into some different areas.

Speaker B

In business we have marketing, we have sales, we have our delivery and we have the overall business numbers to track.

Speaker A

So where do you say, where do you think we should start marketing?

Speaker B

It's the first part of the business we start marketing and the first one we have for is the number of leads.

Speaker B

So yeah, we need to know how many leads are we getting in and when we track which we get on a monthly basis.

Speaker B

You don't need to track on a on a weekly basis until you are way ahead.

Speaker B

But right now we look into monthly basis.

Speaker B

How many leads did you get into your funnel?

Speaker B

So 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 B

But we growing that then I also have the next one.

Speaker B

How many offers am I giving out?

Speaker B

This 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 A

All right, because that's so important.

Speaker A

Because an offer is not necessarily buy my coaching or book a call with me straight out of the gate.

Speaker A

An offer could be anything from a free giveaway, a template, it could be a free Facebook group, it could be anything.

Speaker A

That allows them to say yes.

Speaker A

Yes, I would love that.

Speaker B

It 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 B

But we want to make sure we put out offers.

Speaker B

This 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 B

So it's making sure I'm moving forward in my funnel, not just standing still.

Speaker B

So then we also have if you are running these events, how many participants are you getting to say yes and register?

Speaker A

Yeah.

Speaker A

So there are registrations and then there is how many people actually shows up when the event happens.

Speaker B

Yeah.

Speaker A

Those numbers are never the same.

Speaker B

We want to know how many people do we get to our events?

Speaker B

How many show up at least.

Speaker B

But then let's look at those people who are doing more than 10k a month still in marketing.

Speaker B

They still need to do the same things as everyone else.

Speaker B

But we want to add a little thing because we really want to understand what is our engagement rate on our content.

Speaker B

We use mostly organic content.

Speaker B

We want to make sure we use organic content at least up to 10, 10, 20k a month and then we.

Speaker A

Can close it closer to 20k rather than anything else so that we build up a social proof.

Speaker B

So 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 B

But 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 B

So eng engagement rates on our marketing.

Speaker B

And when we start running ads we want to know our cpl.

Speaker A

Yeah.

Speaker B

Cost per lead.

Speaker A

Cost per lead.

Speaker B

Yeah.

Speaker B

How much does it cost us to get a lead?

Speaker A

So it shows us the quality of our ad.

Speaker A

If 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 B

To see like from month to month, can I do it better and better and better.

Speaker B

Is it going the right way?

Speaker B

Great.

Speaker B

So I think we have some good numbers here in marketing.

Speaker B

Let's, let's take a look into the sales.

Speaker B

I'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 A

Yeah.

Speaker A

So booked calls, book calls.

Speaker B

What would you say about that number?

Speaker B

Why is that an important number to know?

Speaker A

Because if we reverse engineer a business, if we have a goal of I want to Earn this much money.

Speaker A

And then we reverse engineer it.

Speaker A

It comes down to, I need this many sales calls in order to get this many clients.

Speaker A

In 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 B

Yeah.

Speaker B

And 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 B

We want to know how, how efficient the conversion rate is, telling you two different things.

Speaker B

First of all, those people who show up, how many of those are becoming clients?

Speaker B

So if you go through the last 10 sales calls you had, how many became clients?

Speaker B

If you got four clients out of last 10 sales calls, you had 40%.

Speaker A

Conversion rate, which should be your benchmark.

Speaker A

Just FYI, in the beginning of your business, starting out, the first time we're doing sales calls, you probably won't get there.

Speaker A

But 40% conversion rate is absolutely where you should be.

Speaker A

And there are many different reasons to why you are not achieving it.

Speaker A

If 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 A

And then obviously it's the quality of the conversation on the actual call itself, which is a different training.

Speaker B

Yeah, definitely.

Speaker B

No, 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 B

If I did not, I need to ask myself, why did I not get that?

Speaker B

And we look into this is why we need the numbers.

Speaker A

And that point is so important because it's, it's in retrospect, when we need to know our numbers.

Speaker B

Yeah.

Speaker A

If you, if you felt that, why didn't I reach my goal this month?

Speaker A

And it's like, it's because, because it's, it's, it's been feeling heavy.

Speaker A

Like, sure, it might be true that it has been feeling heavy, but the reality is you can't learn much from that.

Speaker A

Okay, so super cool.

Speaker A

What are you going to do differently next month?

Speaker A

What are you going to do in order to help you to feel lighter and happier and more energized and more, more passionate?

Speaker A

That'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 A

But that's what I should have gotten.

Speaker A

I got two clients or maybe I got one client.

Speaker A

Okay, cool.

Speaker A

So where's the thing that's off?

Speaker B

Yeah.

Speaker B

And then we fix that.

Speaker B

Then we have the monthly revenue in contracted sales.

Speaker B

Can you explain what contracted sales is?

Speaker B

And this is for the new people.

Speaker B

So why is this a very important number to.

Speaker A

So 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 A

Because 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 A

And that payment plan should be with decent amounts of money each month.

Speaker A

But it means that you're not going to get the money into the bank right away.

Speaker A

So contracted sales mean that you're calculating and counting the full contract.

Speaker A

The reason why that is important is that we need to build momentum and a few.

Speaker A

A contract signed is a future income.

Speaker A

So you are going to see that income in your bank account, but not necessarily the first month.

Speaker A

But 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 A

But right now we need people, not a person, not someone that pays in full.

Speaker A

We need signed contracts over a continuum to participate in your program or in your coaching process.

Speaker B

So it's focusing on this sale and number of sales more how much in total am I going to make?

Speaker B

And not all of the money will come in at this time.

Speaker B

So it's focusing on sales more than how much money do I get in?

Speaker B

Because I understand that a lot of clients have been feeling, well, it wasn't a good month and you asked them why.

Speaker B

But I only got this much cash collected saying, okay, so how many clients did you get?

Speaker B

Well, I got four clients.

Speaker B

How many clients do you normally get in a month?

Speaker B

Well, this is the first time I got four.

Speaker B

So 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 B

Yeah, but you will make all the money.

Speaker B

And next month, if you get four or five clients in next month, again it will start building up to a month recurring revenue.

Speaker B

You would get more and more money in even from last month's sale.

Speaker B

So yeah, it's just putting the focus right at this point in the business.

Speaker A

Yes.

Speaker A

And get several clients into your business because that builds momentum, help helps you to become a better coach faster.

Speaker A

But 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 A

Let's say that we get four clients a month, every month and all of them signs up for a, for a payment plan.

Speaker B

Yeah.

Speaker A

And let's say that that pay is six months.

Speaker A

So every client pays it off over six months.

Speaker A

And then we're going to talk about the next metrics.

Speaker A

That is not a part of this, that is standards.

Speaker A

So 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 A

Because it's going to build on each other.

Speaker A

The first month is going to be four people paying.

Speaker A

Next month it's going to be eight people paying and then 12 people and then 16 and then 20.

Speaker A

And then on the back end of that six months you're going to have those 20 clients paying that monthly commitment.

Speaker A

Commitment every month.

Speaker A

And you're going to see that it's going to level out.

Speaker B

Yeah, great.

Speaker B

So I'm going to move to the people doing a little bit more, adding some more metrics.

Speaker B

They still use the same metrics, but if you're doing above 10.

Speaker B

Okay.

Speaker B

You definitely do want to know your show rate at your sales calls.

Speaker B

And this matters more when, as you said before, when you invite more cold leads.

Speaker B

That could be if you invite them in from events, if you invite them in from ads.

Speaker B

If 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 B

Because if people do not show up, it's probably something in the qualifying piece before, before the sales call.

Speaker B

We also have the same things, but we added to.

Speaker B

If you're doing more, you probably have more sales events.

Speaker B

Then we want to understand what is our conversion rate on our sales events.

Speaker B

If you have 50 people in your, in your channels, how many of those people become clients?

Speaker B

Because once you know, let's say you get five clients for every time you have 50 people in the room.

Speaker B

That's a 10% conversion rate.

Speaker B

Now you just need to know again, a next number and that is the return on ad spend.

Speaker B

Some of the people might be organically, but some might be paid to be there.

Speaker B

And if you know how much do you make every time you get an event, how much do you make on ad spend?

Speaker B

Because ROAS is return on ad spend.

Speaker B

How much money do you make on ad spend?

Speaker B

Your ad spend.

Speaker B

Now you start having a machine.

Speaker B

Once 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 B

Where do you make the money?

Speaker A

Yeah.

Speaker A

So 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 A

My ad.

Speaker B

F.

Speaker B

Yes.

Speaker B

Great.

Speaker B

Then we have cash collected and.

Speaker B

Cash collected.

Speaker B

We had a chat about that because cash collected.

Speaker B

When should we start measuring cash collected?

Speaker A

So 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 A

But.

Speaker A

But when is it necessary for the business to focus on that, to focus on cash collected?

Speaker B

Well, I think you don't necessarily need to do that at 10k but 30k month and above.

Speaker B

You want to know that because that number is telling you how good am I at getting the money from my clients.

Speaker B

So it will have you focusing on getting your money upfront, having more of your clients instead of paying on payment plan.

Speaker B

What can I do to get them be paid in full?

Speaker B

Make sure you actually get more cash into your business.

Speaker A

That's the main thing about tracking.

Speaker A

Whatever you measure gets done.

Speaker B

Yeah.

Speaker A

So the moment you're starting to focus on cash collected is when you're going to become creative with.

Speaker A

Okay, so what can I give.

Speaker A

Give to the clients who pays in full?

Speaker A

Okay, they're going to get this bonus and this bonus.

Speaker A

They're going to get an extra onboarding call or they're going to get an individual this thing.

Speaker A

And the moment they experience that, it's.

Speaker A

It's a, like, it's a.

Speaker A

It's a different ball game.

Speaker B

Yes, absolutely.

Speaker B

And then we have the monthly recurrent revenue.

Speaker B

And that's actually what you spoke about before.

Speaker B

When you have people keep paying on payment plan and you can see that payment plan that is working.

Speaker B

Cash is coming into Your bank account every month.

Speaker B

And that keeps growing, growing, growing.

Speaker B

That is your monthly recurring revenue.

Speaker A

Yeah.

Speaker A

And to break it down, it says itself monthly.

Speaker A

That means month, recurring means every month.

Speaker A

And then revenue means, means money in.

Speaker A

So monthly recurring revenue is a very, very exciting thing to track because that's something that we want to see grow.

Speaker B

Yeah.

Speaker B

Because 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 B

Because you know you have that monthly recurring revenue.

Speaker B

Because 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 B

Monthly recurring revenue should be steady growing number.

Speaker B

That means that you always get at least this number.

Speaker B

That gives you security.

Speaker A

And it's also the first indicator if something is going poorly.

Speaker A

That's the first number that is going to go down.

Speaker A

So 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 B

Definitely.

Speaker B

And that is all about those who come a little bit further.

Speaker B

Then I have a number that's somewhere in between sales and delivery and for those people who come a little bit longer.

Speaker B

So 10k and above.

Speaker A

Customer lifetime values.

Speaker B

You're so right.

Speaker B

So what is customer lifetime value?

Speaker A

Customer lifetime value is also what it, what it sounds like.

Speaker A

It's the lifetime value of your customers and it's not based on one customer, but the easiest way.

Speaker A

There 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 B

Yeah.

Speaker A

So if they want to consume more of your coaching, we want to have another offer for them.

Speaker A

So 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 A

Then you want to see with this, a hundred clients, how much are they spending on your coaching in a bundle.

Speaker A

So how much does all of them spend?

Speaker A

And then you take that number of revenue and you divide it with a complete hundred people.

Speaker A

So 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 A

But 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 A

So much.

Speaker A

That 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 A

So 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 A

But 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 B

So 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 B

But 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 B

And when we speak low ticket, we're.

Speaker A

Speaking up to 4,2k.

Speaker A

When 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 B

So we're not speaking into the ultra low, low, low, low ticket that goes.

Speaker A

In three, the next to three stuff.

Speaker A

That's a marketing thing.

Speaker A

Here's the statistic.

Speaker A

If someone buys something for a thousand euro, they're almost just as likely to spend 2k with you if they spend 1k.

Speaker A

And 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 A

If 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 A

And if they have a thousand euros available, they are just as likely to have €2,000 available.

Speaker B

And 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 B

Where you should be focusing is marketing and sales.

Speaker B

Once you get above that, I will not even say 10k but you probably need to get to 20, 30k month.

Speaker B

Then 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 B

So your delivery becomes as important as your marketing and sales.

Speaker B

So for people doing less than 10k, the only one we want to measure at this point is client completion rate.

Speaker B

How 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 B

Did they want to stick around to the end of it or did you lose them on the way?

Speaker B

So if we look at those people who come a little bit further, there's some other numbers.

Speaker B

There's one is session attendancy rate.

Speaker B

If 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 B

And one of the things the tracking numbers of understanding wellbeing is session attendancy rate.

Speaker B

Because 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 B

Yeah, you're going to, you're going to probably going to lose them if they do not show up.

Speaker B

You're probably going to lose them as well.

Speaker A

Yes.

Speaker B

Yeah.

Speaker B

So it's a first number too do to measure.

Speaker B

The second one number is the client progress metrics.

Speaker B

So 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 B

But you need to track that they are actually progressing within your program.

Speaker A

Yeah, they're taking the necessary steps to.

Speaker B

Move forward, steps to get the result you promised them at the end.

Speaker B

So it's kind of like from start to end where you have your promise of your program.

Speaker B

What 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 B

We have client retention rate.

Speaker B

So 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 B

If you have a good client retention rate, it means that they want to continue Work with you after the six months.

Speaker B

So how good are you at keeping your clients after they, they, they went through the initial thing they bought?

Speaker B

How, 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 B

On the other side of retention, we have churn.

Speaker A

Churn.

Speaker A

Yeah.

Speaker A

And 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 B

So 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 B

Let's say you're not focusing on the churn rate.

Speaker B

It 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 B

No, it's not going to be a growing scaling business if you lose your client on the back end.

Speaker B

So we want to make sure we keep our churn rate down.

Speaker B

And a good benchmark is 2% because there will always be clients that will drop out for some reason.

Speaker B

But a 2% like Ben is a good benchmark for your churn.

Speaker B

And if you're doing that up to 2%, less than 2%, you're good.

Speaker B

Let's go to some operational or standard business numbers.

Speaker B

And these are numbers.

Speaker B

And 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 B

Just go out and do some marketing and sales.

Speaker B

That is literally you should be focusing.

Speaker B

So this is for businesses that are doing more, especially when getting to the 30k and above.

Speaker B

And one thing is cash flow.

Speaker B

You absolutely need to know your cash flow that people are paying, your clients actually paying.

Speaker B

Do you get their cash flow into the business?

Speaker B

The 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 B

So what we have left in the bank afterwards is our profit.

Speaker B

When 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 B

How much money are we actually keeping in the business to ourselves as the owners of the business?

Speaker A

Yeah.

Speaker B

That was a lot of things to go through.

Speaker B

And as we said from the beginning, this probably is an episode for you to mark that go back to.

Speaker A

Yeah.

Speaker A

And watch at different levels in your business.

Speaker B

Yes.

Speaker A

But if if there is one thing to take away from this, you need to start.

Speaker A

If you're not measuring and if you're not tracking your numbers already.

Speaker B

Yeah.

Speaker A

That needs to start now.

Speaker A

No matter how big or small your business is, I don't care.

Speaker A

Because it allows you to focus on the right thing that move the needle for you and allow you to make money faster.

Speaker A

And this, this episode is, is all about making sure that you have a pleasant ride.

Speaker A

Building your coaching business.

Speaker B

Yeah.

Speaker B

And 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 B

It's not a discussion, do I want numbers or not?

Speaker B

If you have a business, you have numbers.

Speaker B

So it's rather about, do you want to care about your numbers or not?

Speaker B

And if you want to grow a business, we absolutely suggest you care about your numbers.

Speaker B

Numbers.

Speaker B

And if you don't have that natural emotional sense of having fun with numbers, make it fun.

Speaker B

It'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 B

Like have a good time doing it.

Speaker B

Setting 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 A

Yeah.

Speaker B

Decide on, on making it a pleasant time and look at what this is actually moving my, my business forward in the right direction.

Speaker A

Yeah.

Speaker A

And start small.

Speaker B

Yeah.

Speaker A

You 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 A

And 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 B

Yeah.

Speaker A

So if, if that would be the case, then you can start just.

Speaker A

If you're a new coach and you're, you're.

Speaker A

You want to get more clients in, set a goal.

Speaker A

So how much money do you want to make monthly in contracted sales?

Speaker A

And then focus on.

Speaker A

Okay, so how many sales calls do I believe I need to do every month in order for that to happen?

Speaker A

And then break that down into a weekly, weekly schedule because.

Speaker A

And then track that.

Speaker A

And then you can grow from that with the insights of what it makes and what it does for you.

Speaker A

Tracking that.

Speaker A

Then 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 B

Yeah.

Speaker B

So once again, download the business metric tracker template we have on our YouTube.

Speaker B

Make sure you like and subscribe.

Speaker B

And if you have any questions to us, find us on Instagram, ask us in YouTube or come in and join our group.

Speaker B

See you next time.

Speaker A

See you next time.

Speaker A

Have a fantastic week of coaching.

Speaker A

Bye, guys.