Revenue Model: The Rule of 10

Revenue Model: The Rule of 10

I discovered this sort of by accident. And it's just one idea. It follows the old addage that "if you shoot for the stars, you don't know if you'll make it, but you might end up on the moon". What happened with me is I was working on a new business. I had done some revenue models for it. I figured out that the business could potentially make an awful lot of money if I worked hard at it. Later as I got into it more I realized that those original goals were a long way off. However, the original goals were so high that even though I'm only coming up on making 1/10th of that original projection, I'm still quite pleased with the result. It's still a nice six figure annual profit. But by originally making actual plans that were WAY WAY beyond this amount it helped me to at least get to where I am now. Which is working on a business that's actually doing relatively well. But if you do the opposite and you aim way too low then when all these unknows and unexpected things get factored into your plans later on, you might not even be in the black. You're business might have lost money because you're original goals were just way too low. Or you made so little money that it no longer seemed worth continuing. Les Brown talks about this concept too. He says "whatever your financial goal is, then double it because you have to factor in a failure or two along the way". But I think you should go even further than that. Create a business plan that will make you 10 times the money that you could live with. So if you're goal is to make 100,000 annually, then your business plan needs to be created illustrating in detail what you need to do to make 1million per year. That way as you work on the plan, best case scenario everything goes according to plan and you make your 1m per year. Worst case scenario (which often tends to be the case) is that you only make 1/10th of what you had planned for. Which would be 100,000 per year, which at least gets you off the launch pad. Which at least you can live with and press forward with. Remember: "if you shoot for the stars, you don't know if you'll make it, but you might end up on the moon". So again whatever your plan was now take that plan and revise it to figure out what you'd need to do in order to do 10 times that amount of business. And start working that plan. That way you got a fail safe in place and chances are much better you'll end up succeeding at some level by your deadline. I hope that makes sense. I'm probably gonna pass this tip onto some of my friends, as it seems to work.