We have all heard of the term, Reverse Engineering, and I must admit it is a new one for me, even though I have been in finance for over 30 years. But it is getting used a lot on social media so firstly let’s see what it means and in what context it is being used.
On social media, coaches tend to use the term ‘reverse engineering’ a lot when they are trying to get their clients to smash their earning ceiling or get to the fabled £10k months.
It basically means how to work out how to get to your goals. And no, the universe is not going to give you those goals on a plate you have to go out and earn them.
So, if your goal is to get regular £5k or £10k months, how many of your products or services do you have to sell to get you there?
Let’s look at a couple of examples: –
Service Based Example.
If you are a coach and your biggest package is an 8 x week programme for example and you sell it for £3000. That’s in effect £1500 a month. You will need to get 4 clients on that package to get £6000 month.
Product Based Example
If you sell a product and your best seller goes for £500, you will need to sell 10 x of that product to get to £5000 month. That is 2 or 3 a week.
It’s basically working out how much of your product or service you need to sell to get to your goal.
Invoices v Cash in bank
But remember, you could make a £50K one month in invoices raised, but still have no money in the bank. It is worth recording both sales invoices raised, and invoices paid. As sales and actual cash are very different.
I have a handy little income tracker which is free to download from my website, and helps you keep track of your invoices raised and when they have been paid.