Do you feel like you’re torn in a million different directions when it comes to your work?
Are you juggling different clients, jobs, or maybe even a job AND one or more businesses?
Do you want to free up time to focus on what matters most, but you aren’t sure where to begin?
If you answered “yes” to any of these questions, this article is for you.
It’s the second part in a 3-part “Know Your Numbers” series that I promise has almost nothing to do with math or bookkeeping – and everything to do with helping you:
✅ Grow your income
✅ Charge your worth
✅ Finally create the success you dream of
If you missed Part 1 – How Knowing ONE Number Can 3X Your Business – you can read it here.
Next week, I’ll be sharing Part 3: The #1 Way to Ease Your Path to $5K-$10K Months.
But today is all about…
Part 2: How to Stop Spreading Yourself
Too Thin & Start Charging Your Worth
When I began to transition out of the online marketing business I ran for 6 years and into coaching, I was in total overwhelm.
Running two businesses at once. Working with half a dozen clients in my marketing biz while starting all over again from scratch with a brand new startup.
This was about the time when I started having DAILY panic attacks. I’m talking full-blown, “I think I’m dying,” my husband has to talk me down and I’m still freaking out, panic attacks.
So you could say I know a little something about being spread thin. ?
But in all honesty, this wasn’t a new pattern for me…
I had been overloading myself since college, where I was so determined to prove myself that I got straight A’s, was on Student Senate, participated in countless on-campus organizations, and ended up graduating Summa Cum Laude and winning 7 awards my senior year – all while partying like crazy!
I carried this through to my first business, where I would break down crying in total exhaustion every 2-3 months because I had taken on more work than I could handle AGAIN.
Today, I run a multiple 6-figure coaching business – along with my mentor & business partner Gigi Sage. I have an incredible team: a full-time VA, part-time “tech wizard,” a social media assistant, and many other contractors we bring in on a project basis.
I am no longer a stressed-out solopreneur. I have support. I’m clear on what we offer, and charge rates that are in alignment with the value we provide.
So how did I turn things around?
It all started with knowing my numbers.
(I talked about How Knowing ONE Number Can Help You 3X Your Business in Part 1 of this series, so I won’t go into that here.)
The other numbers you need to know if you’re feeling pulled in a million different directions are:
- How much you earn with each job / client / project
- How much this breaks down to in dollars earned per hour
Sounds simple right? That’s because it is!
However, armed with this information, you can start to make very important distinctions about where your time is going, and where you need to make changes to start to free yourself up.
Let’s look at an example…
Easy math, right?
But you would be surprised how few people actually know where their income is coming from – and how that breaks down hourly.
When you look at it clearly laid out this way, it becomes obvious what brings in your highest hourly rate. Coaching is definitely the way to go – and to grow – IF it also brings you alive.
In fact, if you could enroll 3 more coaching clients at the same rate, you’d only be working 4 billable hours per week, and you would nearly replace your income from your part-time day job – while freeing up 17 hours per week, or 68 hours per month!
See how this could start to be fun?
When our clients breakdown their projects this way, many of them are shocked:
- When Jasmine – a consultant – looked at how many hours she was working for each client vs. what they paid her, she realized her least favorite client to work with was actually the one who was paying her the least, and she didn’t even realize it! As a result, she made the choice to not renew her contract with that client – which freed up her time to focus on the projects and clients that energized her.
- When Sarah – a coach who was working multiple part-time jobs while she got her business off the ground – saw what she was making hourly from each position vs. what she could earn from her coaching, she got inspired to create retainer packages where her coaching clients paid her monthly. She went out and sold a number of these, and was soon able to quit the jobs that didn’t pay her what she wanted, or truly bring her alive.
When I did this exercise – back when I was transitioning from my marketing business into coaching – I was able to identify which clients paid me the most per hour of my time.
Interestingly, these also happened to be the clients that were easiest for me to work with!
At that point, my mentor helped me design a proposal to work for them on a monthly retainer, and I was able to earn the full amount I needed per month working just TWO days per week.
This freed me up to spend the other three days focusing on growing my new business, and in time, I dropped down to working one day per week with my retainer client (as my income increased from coaching). Eventually, we ended our contract altogether, when I’d successfully replaced my income with my new business.
This seems simple, but it is so powerful.
Know. Your. Numbers.
Track every penny that comes in, where it came from, and your total monthly revenue. And look at every job or project you’re working on and break down what you’re getting paid hourly.
I recommend updating this chart monthly, as follows…
In this scenario, the person tracking their numbers enrolled 2 additional coaching clients in February, and then felt confident enough to quit their day job. By March, they enrolled 2 more coaching clients (a total of 5) and were earning more than what they had been previously.
Instead of crossing out the number of hours worked per week and per month, they simply updated these each month to reflect their current arrangement.
I call this a “Money Magic Chart” because it is absolutely magical what happens when you start to pay attention to your money this way. 🙂
3 important distinctions about the Money Magic Chart…
Distinction #1: I’m NOT saying you should charge hourly! For coaches & consultants, I typically recommend charging by the package or retainer. However, it’s important you know how this breaks down hourly, so you can make distinctions about where to focus your time & energy.
Distinction #2: This doesn’t take into account the time it takes for you to do outreach, marketing, sales, or the other aspects of running your business. That’s a whole other rabbit hole that would be too complex to go into here. However, assuming you love what you do and are following a proven system to find & enroll clients, that part should be FUN – and is simply part of growing a thriving business! In time, you can hire more support and create systems to free you up even more. But first, you need to earn enough to make that happen.
Distinction #3: If you know you spend longer working with your coaching or consulting clients each week – preparing for your sessions, reviewing “homework” assignments, or providing additional text/email/voice note support, you can definitely factor that into the chart. Perhaps you spend more like 2 hours per week rather than one. Feel free to adjust accordingly!
How does this help you start charging your worth?
Because when you actually know what you’re earning you can begin to make adjustments.
- Let go of the jobs / clients / projects that don’t pay you enough (as long as you can replace that income from other higher-paid sources)
- Increase your rates to ensure you’re getting paid well for what you do (as long as you’re able to successfully enroll people at the new rates!)
- Adjust the structure of how you charge (hourly, project-based, retainer, etc.) to be a better fit for you. I highly recommend retainers or monthly payment plans for more sustainable income!
Why not try it out for the next few months?
I think you’ll be amazed at the clarity and perspective it gives you.
I look forward to hearing how it goes!
P.S. Whenever you’re ready, here are 3 ways we can support you…
- Are you a coach or aspiring coach ready to get results in business & achieve coaching mastery? Join our free Facebook group for weekly LIVE trainings here.
- Looking for clarity about your unique gifts – or what’s next for you? Take our free World Changer Quiz to find out what kind of world changer you are.
- Ready to get REAL results in your coaching or consulting business? Email us at [email protected] with the word “RESULTS” to find out more about our upcoming Business Bootcamp!