You see it mentioned online all the time nowadays - How to become a six figure business, How to build a six figure business. But what exactly *is* a six figure business?
If you've just started out on your business journey you've probably got some goals written down. If you haven't, then stop reading this and go and do that now. It's important to have goals, else what are you working towards?
Most people will have a couple of goals. One might be to help people through their work and make a difference and their other may be a financial one. There is nothing wrong with having a financial goal, to want a better life for yourself.
A six figure business is simply a financial goal. Six figures generally speaking, relates to reaching a turnover of £100,000. Multi six figure business refers to £200,000 and above. Of course, we're talking turnover here, not profit. Don't confuse the two. There's no point having a £100,000 in turnover if your outgoings to reach that are £100,001, is there?
So, why is a six figure business 'the thing' to aim for? Well. it sounds good on social media, it sounds like a huge number, yet it's also surprisingly achievable.
Yes, you heard me. It's really not that hard to reach a six figure turnover. It's the timescale in which you do it and the profit that you get from this that is the part you need to work at.
To achieve a six figure business you need strategies in place.
- You need a clear plan for your business. A roadmap outlining what your business is, what's unique about it and it's goals.
- You need a solid financial plan. A personal budget so that you know how much you need to take from the business as a wage to live. A sales forecast, where you take an educated guess based on market research, how much of each item you expect to sell each month. A cashflow forecast, where you can map out your monthly expected outgoings and sales to see when you are likely to need to reserve cash and when you can invest in your business, and finally you need well worked out margins based not just on cost price and a mark up, but on time to produce, shipping costs and packaging costs.
- You need a marketing plan, strategizing how you will reach your target market, who they are and what they want.
With these things in place, you are ready to grow into a six figure business and beyond.
Comment your goals below!
If you need help with any of these things then grab yourself a FREE copy of our Six figure Business eBook.
For more help with business plans, financial plans and small business marketing I've created a selection of templates and guides to help, and I also offer mentoring via my Patreon.