In this post: Any business is going to take investment. Today, I’m sharing with you how to work out if an investment in your business is a good one? (and how to present that to your husband).
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How to Work Out if an Investment in Your Business is a Good One?
So I just wanted to hop in with a little bit of advice on how to know whether investing is good for you and whether you should do that.
First of all, any business is going to take investment. I can feel so, so lucky as health coaches that we can get a business started today with no collateral, with no rents, with no team or staff. How many businesses in the world can we do that? There are not many business opportunities where we can literally just start with our laptop or even a phone.
We've had a couple of ladies who've both made around $3,000 in the last week just to get into the program. I'll give you one example of a lady who earlier in the week felt that she was going to join UPswing Mastermind, then no, maybe she shouldn't invest. And just from one discovery call with me, she made $3,000 this week! This is a small tweak, having a mentor there for you who was like, "Hey, have you thought about doing it this way?" or "Hey, what about putting an offer out like this?" I was able to bring in some quick money to be able to invest in their businesses.
When you have the question, "How can I...?", you can get support from someone like myself or my team to help you find those answers. First thing is, you've got to get support sometimes to get those answers and I get that it could be chicken and egg. Asking the question, "How can I...?", that's what these ladies did, they put up their hands and asked. And we were able to help them to do that.
Secondly, one of the ladies that I spoke to, the belief really wasn't there. She was telling me that she wanted to make the money, but she didn't really believe that she could do it. And that was something through just chatting to her and coaching with her on the discovery session that the mindset was able to shift. She didn't even consider that she was someone who could bring in that kind of money. And just from a small conversation, we opened that up and she's already received that, which is just so, so fun. So the first thing is asking how, the second is believing that you can do this.
But on a practical level, I know many of you have to talk to husbands and partners so, how do you present this business case? How do you work out if you should invest?
There's something that my husband taught me when I was first investing in coaching. My very first mastermind was a $9,000 mastermind. The next one was a $20,000 mastermind and I've invested to be on there since. So what is the formula, or the masculine business formula that my husband and I sit down and discuss every time I want to invest, even to this day, even when I was a health coach, making no money at all, it's the same formula. And it's a formula that my husband uses in business in the corporate world to know whether they should invest too.
It's a business principle, this is not woo woo manifestation. Although I'm good at getting that for you too. But the way to work this out is to look at a three-year plan. And the grounded way to invest with maturity, to know whether it would be a good investment is to think:
"Would this be a good investment for you and make money back in three years?"
"Would I double this investment in two years by doing it?"
"Would you 3x that investment in three years?"
So let's take something like the UPswing Mastermind, it's a $5,000 investment. So at $5,000, the first question would be, "Do I believe that I could make this money back in three years?" "Do I believe that for my health coaching business, worst-case scenario, everything absolute worst, all I did, nothing more in three years was make $5,000?"
That would be your first question. And I'm going to challenge you a lot. If that belief is not there, then you're probably not a candidate for the UPswing Mastermind because anybody who would run a health coaching business for three years and only make $5,000 would be crazy in my head but it is the way that we check.
The second question then is, "Will I double it?" "Do I feel confident that when I have these skills, this curriculum, this coaching or mentoring, that I would double back my investment over the three-year period?"
So if you were to put $5,000 in an investment, do you feel confident that your health coaching business would go from making zero to $10,000 over two years? Now that would only be $5,000 a year. Again, I'm kind of going to call you crazy if you don't feel that you could do that.
This might take us back to the belief piece that I said at the beginning, the third, which is the way that they do it in the small business world or startup world and corporate level is "Will I 3x this business?" Now, if you believe you could 3X this, then now you're not just investing smartly. This is actually kind of like, now you're crazy if you don't. That's how we start to turn that interpretation.
So let's look at that $5,000 investment. Now, do you feel this investment or you would know it's a good investment if your business would be making more than $15,000 over a three-year period? So again, we're only looking at $5,000 a year, and there is no way that anybody who actually follows the system would only be making $5,000 a year. I mean, that's just unheard of. So that would be your litmus test. And through that lens, you would actually be crazy then if you were leaving money on the table instead of investing.
If you were putting together your own little mini business case and if you need to go talk to your husband or a partner or somebody who needs to see the numbers and the facts, this is what you would be looking at: I'd be doing investment of $500 a month or $5,000 in total. And my plan is over three years to be making $5,000 a month.
Even if we were super, super conservative, maybe the first month he made 500, a thousand, 2000, 3000. Even if it took you, um, you know, four months, you're making $5,000. And even if you didn't grow further than that, which you would, but even if you just then consistently made that, what is that worth to you over a three-year period?
So let's do the math: $5,000 times one year is $60,000. Multiply to two years, then $120,000. And even if the first year was like a little stop and start and up and down, as you were learning, you're leaving at least $150,000 on the table for a $5,000 investment.
And I need to be honest, if you aren't expecting to build a business that would be bringing in $30,000-$60,000 a year, then you probably would never be motivated to go for it in the first place.
It wouldn't be a business if it was only bringing in $5,000-$10,000 a year. Some of the conversations I've had with people very briefly and quickly, even in the last couple of weeks have been bringing in, straight away, $500-$1,000. A couple of ladies, like I said, have made $3,000 already before they've even joined the program. Just my support on asking that question of "How can I invest?", and helping them believe you can do this and getting a support team, getting a mentor is the best way to do that.
And the investments, if we focus on it through this lens of "I'm going to invest and make no money back", Of course, that wouldn't make sense. That's not thinking like a businesswoman. But if you're focusing through, "I want to build a business and I'm wanting to build it to be making this kind of money" you will get your investment back and more. Even if you guys only had a goal of like $2,500 a month, and you're wanting to do this, part-time, it would still be like a 15 fold investment back.
Unfortunately, these are skills that are not out there and can't really be learned by themselves. So we do have to, in life, just as I've had to in my business and continue to always do my business, always learn from what's working right now, get those skills in areas that we don't already have.
It's not only a business matter of how much money are we leaving on the table, but in my experience, it's also time and energy leading to burnout, leading to low self-worth, depression, all the things I struggled with when I didn't have the plan and was so determined to try to do it without investing.
So I know that this is a conversation that many of you are having with partners right now, trying to decide by yourself and I wanted to share that with you so that we're focusing in the right way.
Love,
Amanda xx
PS. If you’re ready to get consistent clients & earn a consistent income from your health coaching or wellness business, then you’ll love my FREE Masterclass where I teach you the three-part framework to consistent clients and cash flow as a health coach without overwhelm and burnout. Click HERE for Instant Access!
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