6 Reasons Your Consulting or Service Business Isn’t at 7 Figures (or Beyond)
Let’s just cut to the chase: the dream you’ve might have been sold that becoming an Internet millionaire by selling coaching, consulting or any other high ticket program or service is BS.
Of course, it’s important to see that anything worth doing is always more difficult and time-intensive than it looks from the outside. You probably figured that out in your first year or so of being an online entrepreneur. It takes some seriously hard work to be generating more than $10K/month with a high ticket offer.
And if you’ve made it there, then you deserve a round of applause. Seriously, because you’ve had to deal with the ups and downs of inconsistent lead generation, of relying on referrals to power your business forward, and of an unpredictable method for making sales and filling your coaching program or client roster.
Now, you probably want to get to the next level in your business. After 6-figures…what’s next, but 7-figures?
And if you’ve been running around on the “six-figure hamster wheel” for a while now and wondering how you can get to the next level, then here are 6 reasons why you’re stuck at 6 figures with your high ticket offer:
1. You Don’t Know How Much Money You Make on a Sale
Look, there is a huge difference between knowing your exact profit margin and making your daily business decisions based on how much money is in your bank account that morning. There are plenty of entrepreneurs who do the latter, so you aren’t alone…but it’s not exactly the key to a rapidly scalable business. Most people in your shoes don’t even have a spreadsheet to track revenue and expenses, so it’s actually pretty normal.
But here’s the kicker: when you don’t have a clear picture of your fixed business expenses, or how much of your own time you’re spending with clients in your group or 1-on-1 program (hint: it’s a real, tangible dollar amount), plus how much it’s going to cost to acquire a new client…you start to run into problems.
It means you can’t build a predictable system for lead generation because you don’t have a solid CPA (cost per acquisition, or how much money it costs to acquire a new client). So your cash flow is unpredictable, leaving you constantly guessing and stressing, and unable to make long term plans.
Question: how much money do you get to keep every time you sell your program or 1-on-1 services? If you don’t know, that’s a red flag.
2. You Haven’t Focused in on Your Ideal Client…Yet
Let’s say you’ve got your high-ticket offer that you sell for $5,000. For the sake of argument, let’s say that it’s a coaching program for C-suite executives to become better leaders and take their companies to the next level.
Now, if you’ve done somewhere around $150k in sales of the past 12 months, then you’ve probably had about 20-30 clients (depending on any upsells to your 1-on-1 coaching). So you don’t actually know if a group program is the best way to get these people the results they need. Because you’ve only been doing this thing for a few years, you’ve kept your marketing pretty broad so you don’t miss a potential sale.
After all, you need cash to keep your business afloat. But that’s also kept you from niching down into a specific market. Maybe the real money for you is CEO’s of SAAS companies who have 50-100 employees and are really struggling with hiring competent managers.
The truth is that if you’re in the mid six-figures and haven’t yet hit a million in revenue…then you probably are making an educated guess about who your perfect client is. It’s very possible that you’re bringing in cash by selling whatever you can to whoever you can.
Now, if you don’t have a clear picture of the perfect offer for the perfect person, then it becomes very hard to make #3 happen, which is…
3. You Aren’t Consistently Generating Leads
Raise your hand if you have a marketing funnel…
Ok, now raise your hand if you have a marketing funnel that profitably returns $3 to $4 (or more) for every $1 you spend and consistently brings you new clients, day in and day out without you having to do so much as check your Facebook ads dashboard?
If you don’t have a consistent way of getting leads, then you probably don’t have any idea where your next client is coming from.
Which means you have to get clients the old fashioned way…pure hustle, baby. You gotta ping your current clients and see if you can drum up referrals, and “work your network” with some Facebook messages or emails, and post around in various Facebook groups looking for some people that might be a good fit for your program or services.
And before you know it another month goes by where you’re just manually pulling in clients 1 by 1, and working really friggin’ hard for every single sale you make.
Maybe it feels a bit like you’ve got a gun against your head all the time, huh? Like the pressure of having to pay the bills next month is always there in the back of your mind.
That leads right into #4, which is…
4. You Can’t Make Financial Plans For the Future
If you don’t have enough leads coming in to turn into sales on a monthly basis, then it’s literally impossible to plan for the future.
When you’re always stuck hustling to fill your high-ticket group program or sell your consulting service, then making plans for the future is difficult. And if you can’t make accurate financial projections, then it’s basically pointless.
So here’s a question to know if this is you: where is your next $50,000 coming from?
If the answer doesn’t come to your mind immediately, then you may have a problem.
Because without that certainty, you get stuck. You don’t even get to the part where you figure out your cost per lead, or you close rate on the phone or your sales totals and revenue.
You can’t plan for the future, hire team members to delegate things to, stay in your zone of genius, or invest in growth. In short, it makes it very difficult to grow into a scalable and profitable business that can serve 10x the number of clients you currently serve.
Now, even if you do have automated lead generation and you’re getting consistent leads, you can still run into problems if…
5. You Don’t Pre-Qualify Leads BEFORE Getting Them on a Call
Have you ever had a strategy call booked with a prospective client and you get on the call and they say, “Yeah, I don’t actually have any money but I’m hoping you could help me with this…”
Major fail, amiright?
There’s nothing worse than wasting your time with people who only want to take something from you and aren’t even remotely qualified to work with you…
If you aren’t pre-qualifying people before you get on the phone with them, you burn countless hours with people who will never buy from you…
And when that happens, it keeps you trapped in hustle mode and secures your place firmly in the 6-figures, never to depart…
Instead of hopping on the call with just anyone and everyone, you need to have a system that weeds out the freeloaders and tirekickers. Let someone else deal with those people. Having a pre-call process closely ties into this last part…
6. You Don’t Have a Solid System for Closing the Sale on the Call
Let’s just say you get a qualified prospect on the phone.
What happens then? Do you have total confidence that you can coach your prospect to a buying decision?
Or does the call end up in the hands of the prospect, they control the conversation, and you walk away without a sale?
When you don’t have a format you follow on each call that leads someone along a journey towards making a purchase decision, you end up losing control of the call. And when the prospect has control, you end up having to “prove” yourself to the prospect. This leads to having to “chase the sale” and you just come off looking desperate, and lowering your sales close rate.
Instead, you should be confident that you’ve proved your value in the process leading up to the call and you don’t need to chase the sale. With the right system, the sale comes to you.
How Do You Fix It?
Look, if you’ve read this list and seen that your business fits into one or more of these categories, don’t panic.
This is pretty normal for entrepreneurs who have a six-figure consulting or service business.
Whether you’re selling consulting, services or a high ticket program, the challenge for you now is to take your offer and translate it into a 7-figure business. And if you’re interested in doing that, you can check out this free PDF guide…