241 - What's Your Income Ceiling?
On today's episode of the podcast we're calculating your income ceiling and how you can increase the amount of money you make.
Your income ceiling is a combination of how much you charge and how many people you can service at one time. For example, if you're a service provider like a designer or photographer, you're capped out at the number of people you can work with at any time the way your business is currently organized (i.e. how many team members you have, how much time you want to work, etc.) Remember that about 50% of your income goes to taxes and expenses and can vary.
When it comes to raising your income ceiling, are you at your highest price point? Are you looking to raise your prices or offer additional revenue streams like upsells, affiliate sales, passive income, etc.? This will help you make marginal improvements.
Another big way you can break past your income ceiling is hiring. This may look like hiring virtual assistants to help you with onboarding, sales calls, social media, bookkeeping, an associate team of photographers to take on more clients etc.
Creating a one-to-many offer, like a membership or mini-sessions or educational courses, to maximize how many people who can serve in one day or at one time is another way to increase your income ceiling.
Charging more is a solution to raising your income ceiling. There is a maximum amount you can charge to work with the type of clients you are currently working with. For example, doubling your price will attract different clients and does that still fit into your ideal client avatar and if not, are you looking to change the market you offer to?
How you craft your offer will also impact what you can offer and how many people you can serve. For example, I was recently listening to copywriter Rachel Greiman on my friend Claire Pelletreau's podcast who shared that she has a team and they work in a 11 day window following the same system so they can get things done quickly in short notice to get clients' projects completed quickly.
It's important to think about your income ceiling before you hit it. Too often I see people who are completely booked or feeling stuck because they are at capacity and now don't have time to hire and train a new team member. I suggest taking these steps at 75% capacity or whenever you can afford and want to do it. By afford I mean you can afford the time and you can afford it financially.
This requires you to have solid profit margins so you can offload some of the work you have to a new hire and still be able to financially sustain your business and your life.
If you're ready and aren't sure where to get started, here are a few resources:
The first is a limited time private podcast series from Amy Porterfield - My (Brutally Honest) Road to Business Success and the Blueprint I Would Follow Today. The series has 4 juicy episodes you won’t want to miss!
Or, if building a team seems like your next step forward, check out this Building Your Team Course from my friends Ashley and Dale at The Abundance Group.