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Looking at the numbers

Do you like numbers?

Personally I’m not really that interested.

But they can be useful.

I’ve just put together a projection for a personal trainer, showing how he can get to his goal of £6000/month take-home.

He puts in how many clients he expects to have each month and it tells him how much he is likely to be spending on wages, how much he needs to set aside to cover tax and how much he can afford to pay himself. On his current structure and growth rate, he’ll get to paying himself £5300 per month in February 2022, but no higher.

That shows him, quite clearly, that he’s going to have to raise his prices at some point.

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I went through and redesigned the dashboard for my business last week. I put my figures from March onwards into the new format, and got the graph below. It shows a correlation between the number of conversations I have (meetings, one-to-ones, LinkedIn messages) – the blue line – and the number of clients I have – the purple dotted line.

That shows me, quite clearly, that I need to start conversations with more people.

So knowing the numbers might not be exciting but it can give real clarity and show you what to do next.

Which numbers do you track and what do they tell you?

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Price is just a number.

You might believe people will think it outrageous that you want to charge £50, £500, £5000 for what you do, but numbers mean different things to different people.

Back in 2013 I learnt a valuable lesson.

We had a company called EmberAds – a machine-learning advertising platform that was privacy-safe with no tracking (there’s a lesson about timing there too).

We had taken external funding. Spent a lot of someone else’s money. Over £450,000. And we had a product that wasn’t working and £6000 left in the bank.

We went to the investor and told him the score – expecting him to sue us into oblivion.

To our surprise he said “give the six grand to charity, close the company and we’ll go our separate ways”.

Surprised we asked him about the money.

He said “I fund ten companies with that amount of money and only one will be a success”.

I still remember when that initial £111,000 landed in our bank account. I’d never seen so much money. And they continued funding us; it grew to £450,000 – an incredible amount.

But to the investor it was just a number on a spreadsheet. A speck of dust on his expensive suit.

Remember that when setting your pricing – it’s just a number and you can definitely charge what you’re worth.

Posted on

Price is just a number.

You might believe people will think it outrageous that you want to charge £50, £500, £5000 for what you do, but numbers mean different things to different people.

Back in 2013 I learnt a valuable lesson.

We had a company called EmberAds – a machine-learning advertising platform that was privacy-safe with no tracking (there’s a lesson about timing there too).

We had taken external funding. Spent a lot of someone else’s money. Over £450,000. And we had a product that wasn’t working and £6000 left in the bank.

We went to the investor and told him the score – expecting him to sue us into oblivion.

To our surprise he said “give the six grand to charity, close the company and we’ll go our separate ways”.

Surprised we asked him about the money.

He said “I fund ten companies with that amount of money and only one will be a success”.

I still remember when that initial £111,000 landed in our bank account. I’d never seen so much money. And they continued funding us; it grew to £450,000 – an incredible amount.

But to the investor it was just a number on a spreadsheet. A speck of dust on his expensive suit.

Remember that when setting your pricing – it’s just a number and you can definitely charge what you’re worth.