There are three steps that I like to look at, both in my own business and with clients to evaluate whether or not you should actually stop one of your revenue streams in your business.
The first thing to consider is, are you actually enjoying delivering that programme or service?
This might seem a little bit of a funny thing to start with, but actually if you’re not enjoying it, then it’s gonna be draining your energy, draining your resources, draining your creativity and draining your time.
So firstly ask yourself, if you are personally delivering it or if your team is delivering it, do you or do they enjoy delivering the programme and service?
Do you enjoy the content, does it still excite you?
Do you enjoy the type of people that you’re working with?
Can you see yourself continuing is day after day, week after week, month after month, year after year.
Is delivering the programme or service is actually in line with your vision?
I don’t just mean the business vision, I mean the vision you have for your life as a whole, because let’s say for example, that delivering this programme is very intensive on your own personal time, yet the vision you have for your life and for your business is to be working five hour work weeks. Those two are just not going to come together properly. So what we need to do is work out whether the programme that you’re thinking about, the service that you’re thinking about, does it actually stack up to the longterm vision you have for your business, and the model your running your business on and where you want that to eventually be, whatever point in time eventually is for you. Does it actually stack up?
Or are you building up this programme and actually when you think about what you want your business to look like in one year, two years, five years, 10 years, this can’t possibly fit in because there’s no way to deliver it in the way that you want in your life, the way you want your life to look.
There’s no way to deliver that in the way you want your life to look.
The third thing, and this is probably more expected from an accountant, the question is, is your programme or service truly profitable?
So you need to sit down and say, “Okay, how much are people paying me for this?
And what is it costing me to deliver?”
And we want to make sure that you are putting in every cost there.
So for example, if it takes up three hours a week of your VA’s time within your private paid Facebook group to deliver this programme, you need to be factoring that in as well to the calculations. If you have a specific piece of software that you have purchased in order to help you run this programme, you need to be factoring that in as well. If you’re people are paying on Stripe, PayPal, you need to be factoring in your charges from those platforms, from those merchant processors in order to make sure that the programme or service is profitable as well. If you’re outsourcing any part of the delivery, you need to make sure you are including that. And last but not least, what about your time?
Because this is really important as well.
Once you work out kinda what the profit is, is that worth the time you’re spending on it? Is the profit per participant, the profit per client, the profit per customer, whatever you call them in your business, is that worth the time you are actually putting in at the end of the day to each individual, to each person?
Particularly if you have a one-to-one element, is that working for you?
Do the numbers stack up? Is it profitable, and is it profitable enough to keep you engaged?
To keep you wanting to turn up. And is it profitable enough so that as you grow and scale the programme, if that’s what you want to do, the numbers stack up and the numbers work.
Because if you start to do that, you may need to bring extra team onboard for example, to just help service customer service inquiries, customer service that kind of stuff.
So you have to make sure, is it profitable now, and with the vision you have for the programme or service, is it leading to profitability in the future as well.
You need to map that out and you need to work through that.
If you cannot do that yourself, then I highly highly suggest speaking to your accountant who should be able to be helping you with this stuff anyway.
Should be able to map this stuff out for you anyway.
And you can work together to say, “Okay what does that look like? Is this working for me?” So those are the three things that I believe are incredibly important when looking at your programmes and your services in your business, looking at where you are now and saying, “Do I enjoy delivering these? Are they in line with my vision, and are they profitable both now and as I grow and scale, will they continue to be profitable?” Bearing in mind that you may often have to take on help to support as your programmes and services scale as well.
So those are three massively important things.
Now, even if this revenue stream is delivering a million pounds to your top line revenue, this is still incredibly important to assess.
Because if these three things are not in place, then fundamentally you are leaving money on the table in your business because your energy could be directed somewhere better that will have a massively, massively positive impact, rather than focusing on this thing that either you don’t enjoy, is not in line with your vision or is not highly profitable for you. So it doesn’t matter how much this revenue stream is worth for your business, if you don’t have these three things in place then it’s time to think about pivoting. It’s time to think about pivoting your offerings so that you can take all three of those boxes with the products and services that you are offering to your clients, the programme and services that you are offering to your clients.