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This business coaching episode discusses the goals that need to be met in order to achieve big dreams.

Results-Focused Training, Tools, and Workshops from Expert Business Coaches.

Featured Coaching Excerpt - Notes & Transcript, Part 1
  • Ask Yourself: How much do I have to sell to reach my goal?
  • Lesson Nugget: Break down your goals to find how much you need to make per year, month, week, and day to reach your goals.

amazing.com for how to start a business

-Am I helping you? Just reach out me right now. Touch the screen, let me know.

So here's the deal-- $2 of profit per cupcake is what you'd make. So let's just say your goal-- let's say we go back to our goals. Remember our goals? Hopefully, we didn't forget our goals. If our goal was to go see our mom who lives in Michigan, and to work out every week at this gym, and to feed our kids, and to learn a new skill-- so let's say our goal was to make $100,000 a year, and we have to divide that by the number of cupcakes we have to sell. After our break even point, that would mean what?

Well, it means we're going to have to do some math here. So we're going to say $100,000 divided by $2 means we would have to sell 50,000 cupcakes after the first 1,000 a month to break even. So we would have to sell 62,000 cupcakes.

Now, again, we know that it takes at least 1,000 cupcakes a month just to break even. That means it takes 50,000 cupcakes at $2 per to hit our goals. So we're going to have to sell 62,000 cupcakes a year-- a year-- just to make $100,000. So let's do the math on that. Hopefully, I'm not losing you here.

So if it's 62,000 cupcakes a year-- let's do the math here, guys-- 62,000 cupcakes. Some of y'all folks have gone to some college, and you've done some math, and you can figure this out. But here we go. I didn't graduate from college, so if I can figure this out, I want you to clap for me while you're watching. You're just like, man, this guy, I don't know how he does it without the degrees. He's just able to somehow just-- oh, man. That's where it gets tough, like I say.

Roughly, I have to sell-- well, let's go to the calculator. Do we have a calculator? Let's do a calculator. I'm going to do a calculator. Because I feel like it's going to be a really dirty number here. It's going to be a huge-- how do we operate this? We have one of our camera guys doing the math here for us, but I'm going to go ahead and do it here. We have the 1, the 9, the 0-- I think it might be like-- oh my gosh. See, I didn't have a degree, but I almost got it done here. So right here. So we have 1,192 cupcakes a week. Now, how many per day? Somebody with a calculator help me out here. We divide that by 6. No, you divide that by 5, because we're only working five days a week. Because we're like, huh-uh, I'm only working five days a week.

MALE SPEAKER: 238.

-OK. 238. So you have to sell 238 cupcakes a day. Now, we're open for business 10 hours a day. How many per hour? 23.8. So now you have to ask yourself-- this is where the number gets real-- can you sell 23.8 cupcakes per hour? Am I helping somebody? 23.8.

I met a person far off on the east coast who had this idea to go do this big cupcake business. And when I broke this number down to her and I showed her, hey, it's 23.8 cupcakes per hour you would have to sell to achieve your goals, she said, well, we don't even have the capacity to make that much per hour let alone sell them. Bam! Get out of that business. That's a stupid idea then.

And she's like, well, the most we ever could sell in a day is maybe 25 a day. Get out of there! What are you doing? You remember Star Wars, where Luke, he's going into the trench in the Death Star, and he's trying to blow up the whole Death Star thing, and they're like, Luke, pull up! And they're like-- and they're tying to-- I'm telling you, avoid the imperial ships here, man. Pull up. What are you doing? Get out of there. They're blasting at you. You're not going to make it. You've got to get out of there. If you can't sell 23.8, get out of there. And I don't care what business you've decided on. If you don't know this answer, you must stop. You must not move

forward.

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Featured Coaching Excerpt - Notes & Transcript, Part 2
  • Startup Principles: 1. Define Your Big Goals 2. Put A Price Tag On It 3. Find A Problem That You Can Solve & People Will Pay For 4. Draw Up A Rough Business Model
  • Startup Principles: 5. Determine how many transactions per day you need to achieve your goals.
  • "How to Turn a Good Idea into a Fortune" Secrets From An Inventor's Notebook - Maurice Kanbar
  • Lesson Nugget: Don't get stuck trying to solve a problem you cannot make a profit from.
  • Startup Principles 6. Fail forward in a survivable way.
  • Lesson Nugget: Financially plan to have some cushion in your budget for failure.
  • Lesson Nugget: Don't start your business blind. You have to do the math to know how many transactions per day you need to reach your goals.

-Now, we're moving on here, OK? So again, one, we have to define our big goals. Two, put a price tag on it. What does that cost? Three, find a problem that you could solve and people are willing to pay for.

Four, draw up the rough business model. Five, determine how many transactions-- which requires action-- how many transactions per day do you need to achieve your goals? Don't get emotional.

Here's the deal. It's a simple yes or no. Is it possible? If it is not possible, then move onto a different problem to solve.

You know the guy who invented SKYY Vodka? His name is Maurice Kanbar. Maurice Kanbar. And he's the guy I had an opportunity to do some work for. He actually invented a technology years ago and he told me-- it's kind of funny.

His book, by the way, is called "The Inventor's Handbook," by Maurice Kanbar. We can put a graphic on the screen here so you can see the book, but it's phenomenal. Maurice Kanbar. He invented SKYY Vodka. He invited to the modern traffic light. He's absolutely phenomenal.

Well, he explains that he actually invented numerous things that couldn't possibly be profitable. So if you have a problem you can solve, and it can't be profitable, don't feel bad, just move on to a new one. You gotta move forward, OK? You can't get stuck. You cannot move stuck.

Now point number six. Point number six. This is big. I don't know if I'm going to freak you out a little bit, but this is huge. You have to fail forward in a what? in a survivable way. You have to fail forward in a survivable way.

So let's look at this. This is a man. He is standing. He falls, meaning he fails. He fails forward. He is laying on the ground. Is it believable to think this man falls and he falls forward?

So you fall, boom. Does it hurt? I mean, when you bunk your head, bunk is the word that I use, bunk. When you bunk your head, that hurts, right? But then you get back up. But when you get back up, where are you standing? You are standing further ahead than where you were when you started. And then what you do is you fail forward again.

Now, here's the deal. Here's the deal. Put a helmet on there. Get yourself a good helmet. Get a good helmet with the chin strap. Put that helmet on there and then you're going to fail, somebody help me. Where are we failing? Are you failing backwards? No.

Bunk. We're failing where? Somebody help me. We're failing forward. We're failing forward. You fail forward in a survivable way.

Why? Because you have a helmet on. You wear a helmet so you fail, what? Forward. You fail what way? You fail forward and you keep failing forward in a survivable way. You've got to have a helmet on.

So you don't want to go out there and open up your cupcake business without doing the math. You don't want to start your building company without doing the math. You need to know how many transactions do I need per day to achieve my goals. But you've got to be able to have a little bit of a cushion so you can fail forward, a cushion meaning a helmet, a cushion meaning having a little bit of money in the bank.

Cushion meaning, you've thought about it and you've decided, hey, you know what, honey? When I say, honey, I'm talking to my wife or girlfriend or something. Hey, we're going to start a business here, but because we're going to start a business, I'm going to go ahead and sell one of the cars and we're going to move into a small apartment so when we have some issues, we can survive.

I want you to know that Walt Disney lost it all twice that we know about. Henry Ford lost it five times. Entrepreneurs fail all the time, but the reason why that you read about them now in "Forbes Magazine," and you read about them in "Inc. Magazine," and "Entrepreneur Magazine" is because they failed forward in a survivable way. You don't want to set yourself up where you have no cushion at all.

Featured Coaching Excerpt - Notes & Transcript, Part 3
  • CEO & CTO of SpaceX and CEO & Chief Product Architect of Tesla Motors. Elon Musk
  • Lesson Nugget: Daily goals allow you to see the now and see the progress towards your goal each day.
  • Lesson Nugget: You can't achieve any big goal without failing on your way to that goal. Be prepared.
  • Lesson Nugget: Your rough business model estimates your hard costs, variable costs, break-even point, and profit per customer.

[MUSIC PLAYING]

-Elon Musk is famous for starting Tesla Motors. He's famous for starting SpaceX. He's famous for being part of the team that started PayPal. Well, he's had some failures. They tried to send three rockets into space, and they didn't work.

But what was he doing? He was failing forward. He was failing, yes. But he was failing forward. He wasn't failing backward.

But he had a little bit of cushion. He had money that he could put back into the company. And then, yeah. He spent almost every dime he had to keep this company alive. But if he didn't have enough money in the bank to survive multiple failed attempts of his rocket, he wouldn't have made it. He had to have a little bit of a cushion. He had to have a helmet.

For some of us, it might not be having $100 million in the bank to fall back on. But it might be maybe you talk to your parents. And you say, Mom and Dad, can I live in the garage for a few months while I start this business, because when it struggles, I need to be able to survive the failing. You need to be able to fail forward.

This is the system. So in review, let's get into it real quick. And let's make sure we all get this idea.

One. You want to define your big goals. Define those big goals. OK.

So let's just draw this up here for us so we don't leave without any action steps. OK. So one. You want to nail down your goals. OK.

Two. You want to put a price on it. What are your goals? What's the price? Question one. Question two.

Third is you want to find a problem you can solve for profit. Now don't be discouraged if you can't come up with it immediately. We're in a microwave society right now, where people are like, I want my burger right now. I ordered it 92 seconds ago. And I deserve it now.

We are in a culture where we say, I want my Netflix. I want to hit Enter. And I want my video immediately downloaded.

We are in a culture where things happen quickly. But we need to understand that some of this takes time. It's a process.

OK. We have to define our goals. Figure out what it costs. Find a problem that we can solve at a profit. OK.

Now moving on to point four is we have to draw up, draw a rough business model. Rough. Operative word here-- rough.

It doesn't have to be perfect. OK? No one's gonna grade the paper here. All right? We need to make sure that it's rough. Have a rough idea of your hard costs, your variable costs, your break-even point, your profit per customer.

Now next, we have to determine the number of daily transactions we need to achieve our goals. The number of daily transactions we need to achieve our goals. Why do I always say, daily? Because daily is where it gets real. Yearly goals. Quarterly goals. I don't even know what that means. I can't process that.

But daily-- I'm like, man. 23.8 cupcakes? Whew! That's a lot of cupcakes. Per hour? Oh no. I can't do that. I mean, daily. You gotta break it into the daily goals. Those daily goals.

And the final thing is we have to go ahead and fail forward in a what way? In a survivable-- what way? Survivable way.

You wanna go out there and start a business with your last dollar. Some of you have been watching this. You're watching. And you've done it. You've taken your last dollar and you've started a business. And you're like, but I failed.

Well, cause you didn't have anything to survive on. You gotta wear a helmet, man. You're going to fail. OK.

I want to leave you with this drawing, because this is probably my favorite drawing of the year right now. You're this guy. And you fail. Where do you fail? Somebody help me.

You fail forward. And you do what with your head? You bonk your head.

And what did you learn? Uh oh. There is a stone here. So you've learned stone. That's the thing you've learned is avoid stone tripping.

That's what you learned. Are you dead? If you don't have a helmet, you probably will be dead.

So you've got to wear a helmet so you can survive. You've got to have a little bit of a cushion. You might need to downsize. You might need to move into a smaller house before you start your business. You might want to set some money aside before you start your business.

You might want to move in with your parents into the living room when you start a business. You might want to have a roommate when you start your business. But you have to be able to fail forward in a survivable way. Because are you going to fail? Absolutely. OK.

This is what's going to happen. This is the process that we need to do if we are going to actually find our niche to achieve our big dreams. If we're going to actually go out there and discover our big niche to achieve our dreams-- if you're watching this and you're like, man. I just don't know where I would. I don't know what kind of business I would start. I want to start a business. I just don't know what kind of business to start.

If you're looking to find your niche, this is how we do it. I've done it. I never grasped algebra. I took it three times, never really got it. I took my ACT multiple times to get into college.

And I know that if I can do it, you can absolutely do it. So do not be discouraged. Whenever you're dealing with right now, run right through it. We are here at Thrive to help you do it. And we are so excited to help you.

And again, look it me. Look at my paleness. Look at my lack of skill. If I can do it, you can do it.

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