Let’s be real — the numbers can feel overwhelming.
Cost of goods, Cost of doing business, profit margins, taxes, expenses… it’s enough to make any creative’s head spin. But today, we’re going to simplify it all down to just one number — your magic number.
Your magic number is the amount of money you want to earn in your pocket each year — the income that gives you the lifestyle, security, and freedom you’re working so hard for.
Once you know that, you can reverse engineer your business to support it, rather than guessing or hoping you “book enough.”
This is one of the most empowering things you can do for your business — because once you know your number, everything from your pricing to your promotions becomes intentional.
Please note: This is a very simplified explanation… Almost too simple. However, it will provide you with the answers you need to make wise choices.
ACTION STEPS:
Let’s calculate your magic number with this simple formula:
Step-by-step:
- How much do you want to earn (after tax and expenses)?
→ E.g., $100,000 “in your pocket” - Add 30% for tax and 30% for business expenses.
→ Add 60% total (or multiply your number by 1.6)
→ $100,000 x 1.6 = $160,000 gross revenue required - How many weeks per year do you want to work?
→ E.g. 40 weeks (allowing time for holidays, school breaks, life) - Divide your total by the number of working weeks.
→ $160,000 ÷ 40 weeks = $4,000 per week
Your Magic Number = $4,000 per week.
Your Next question is… What does $4000 per week look like?
8 Sessions at $500 each
4 Sessions at $1000 each
3 Sessions at $1333 each
2 Sessions at $2000 each
1 Session at $4000
Obviously, everyone wants to do one session at $4000! But not everyone can, so you need to be a little bit realistic with your business model, your time, your client experience, your product range, Etc. before you start making decisions
ACCOUNTABILITY
Let’s celebrate your progress!
Once you complete today’s task, simply comment “Done” to stay accountable.
Because this is about numbers… Done is fine. But, if you want to share anything you can also do that.
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