Should you say “yes” to that big investment??
I’ve recently returned from a vegan wellness retreat in northern Ontario.
Yes, it was extremely woo-woo.
Yes, I came back with a new perspective on my life/biz.
And, yes, it was frickin’ expensive.
When I’m shelling out thousands of dollars - whether in life or biz - I am always concerned about one thing:
WHAT IS MY PAYBACK PERIOD?
And here’s why you should care about this concept too, friend..
Knowing which investment is a good one and which investment is a total waste of money could be the difference between taking your biz from $1.2M in annual rev to $1.8M in 10 years or 2 years.
Aka payback period is a pretty important concept if you want to make better business decisions stat.
So let’s get started and help you feel confident about saying “hell yes” or “heck no” when the next big investment opportunity shows up.
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.
Here's a simple 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 $39,000.
Neither you nor I know how long it's going to take you to earn that extra $39,000 in revenue, friend.
But I can tell you about other clients that I’ve worked with 1:1 in this way, First name / friend:
One of my clients had a payback period of LESS than two months on her investment with me. Yep. You read that right. She went on to hit multiple 7-figures during our first six months together.
One of my clients had a payback period of FOUR MONTHS on her coaching investment with me because she earned an additional $39,000 of revenue in the first 5 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 one space available in The 7-Figure CEO program… it’s best for those who’ve celebrated hitting around $35k in revenue per month, but are unsure about how to build consistent high revenue months, or those that are hitting 6-figure months, but know they can do more to grow their biz financially.
So, friend, 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, let's chat.
And if you’re wondering whether my vegan wellness retreat was worth it, my answer is hell yes. I came back with a big idea for a client that I know will take them from $300k in revenue last year to a minimum of $500k this year with ease. AND I CAN’T WAIT TO GET STARTED!!
Curious about what's possible for you when you get my eyes on your biz and its financials??? 🤯🤯
Take care and talk soon,
Tanya