Paybacks a b*tch.
That's right - I’m talking about investment payback periods today, friend: a technical-ish accounting concept, but also one of the secret ingredients in good business decision-making.
If you learn how to use the payback period approach correctly, you will be WELL on your way to understanding how 7-figure CEOs decide whether to make a big investment (or not). 🔢
And if you think this topic doesn’t apply to you because you only have $2,000 of cash on hand and investing right now just doesn’t make sense… stick with me, friend. I see you and I'm sending you so much love ❤️.
I can almost promise there will come a time when you’ll be in a place to invest again so read on because I want to help you make *the best* investment decisions - now or later. 🙏🏻
First off, what is a payback period?
The period of time in which an investment produces enough revenue to cover its cost.
And why should you care about it??
Because you don’t want to waste your precious $$ on investments that won’t provide a return, right? 🤷🏼♀️💰
And you want the quickest route to good, sound, financial decisions.
Example:
If you are a lawyer buying a book of business from a retiring lawyer for $250,000, your payback period is the length of time it would take you to make $250,000 in revenue from the book.
If the retiring lawyer had annual revenues from their clients of $50,000, all other things being equal, you would estimate that the payback period of the book would be 5 years ($250,000/$50,000 = 5).
Easy, right?
Sorta. The trick is that sometimes the numbers are not as clear as you’d like them to be.
Let’s say you want to invest in a mentorship + execution business coaching program that costs $33,000.
Neither you nor I know how long it's going to take you to earn that extra $33,000 in revenue, friend.
But I can tell you about other clients that I’ve worked with 1:1 in this way.
One of my clients had a payback period of FOUR MONTHS on her coaching investment with me because she earned an additional $37,500 of revenue in the first 4 months of our time together.
One of my other clients had a payback period of TWO months on her investment after transitioning from her 9-5 to doing her biz full-time.
Another client of mine had serious cash flow issues and in a matter of WEEKS I provided her the tools to receive a cash infusion of $200k.
If you’re inspired by these clients’ stories and the ROI they got on their coaching + execution support investment, I want to talk to you because these are the kind of wild results my team and I get for my clients consistently 👏🏻👏🏻👏🏻
I currently have 2 spaces available in The 7-Figure CEO program… it’s best for those who’ve celebrated hitting at least $5k in revenue per month, but are unsure about how to build consistent high revenue months, or those that are hitting 5-figure months, but know they can do more to grow their biz financially.
If you’re ready to EXPAND your business in a way that doesn’t leave you feeling stressed AF from managing a team or establishing processes or doing a bank rec, let’s chat.
In the past, I’ve worked with other professionals - lawyers, physicians, interior designers, architects, accountants - but this offering is good for any service provider who has experienced some success in their biz and is ready to make some serious money. 💰 💵
That’s the vibe.
>>>>>>Click the link below to set up a time for us to chat. I can’t wait to hear from you!
Take care and talk soon,
Tanya