Learn my STU Method for creating business goals to grow your business in this mini business coaching session for entrepreneurs.
Hey, y’all! This post is for all the Craftpreneurs out there because we’re going to be doing a little business coaching and talking about making business goals.
If you want to have and grow a business, you can’t just put your head down and create. That part is essential, but crafting alone is not a business.
Your business is selling crafts, and you need to think in terms of being a business owner instead of a crafter.
Setting and working toward business goals are some of those exercises that business owners need to do, so that’s what we’re focusing on today!
Business Coaching: The STU Method For Making Business Goals
In my Creative Coaching Subscription Group, I like to talk with my students about the STU Method for creating business goals. Let’s break down what that means:
- S = Survival
- T = Target
- U = Ultimate
You may be thinking, “Ok, that sounds all nice and catchy, but what do these words mean when it comes to business coaching and business goals?”. I’ve got you covered!
Let’s talk about what each letter means as it pertains to creating business goals.
Your Survival Business Goal
How much does your business have to make to survive and pay expenses? This amount will vary for each person, and I’m not even kidding when I tell you that the first time I did this exercise, my number was $500.
But, that won’t necessarily be true for everyone because, for someone else, it might be $1,000, and for another, it might be $10,000.
The number may vary from person to person, but I encourage you to be realistic as you determine this number!
Start by focusing here and only here – on the “S” (survival) part of the exercise. What you need to do is put the blinders on and focus on getting to your goal to survive. If you need $1,000 to survive, then put all your energy and focus on working to achieve that goal.
If your goal is to make $1,000 a month and you sell wreaths, here’s how to look at it:
- A wreath sells for $120, and from that, $50 is profit.
- At $50 profit from each wreath, you need to sell 20 wreaths a month to make your $1,000.
Diversification Is Essential For Meeting Business Goals
Y’all, even if you sell wreaths, you don’t just have to rely on wreath sales to make your monthly monetary goals. You can do other things to supplement your income too.
What about selling:
- Coffee mugs
- Affiliate products
- Wreath kits
- Content creation (and ads)
Diversification of your income streams is huge for business longevity. That way, if one of your income streams “breaks”, then your business can still survive.
For example, say you depend solely on selling wreaths to hit your business goals. Then suddenly, Etsy shuts down and you can’t sell your wreaths there anymore. Or, perhaps you break your arm and can’t make wreaths for 6-8 weeks.
Your business might not be able to survive!
That’s why I like to take each category of money-making possibilities that fit my business and divide out how to make my survival goal within each category. For example, how can I make $1,000 a month selling t-shirts? Or how can I make $1,000 a month selling classes?
With this example in mind…
- How many t-shirts would you have to sell in a month to make $1,000? The answer is roughly 84.
- How many classes would you have to sell in a month to meet your goal? You’d need somewhere around 50 students (at $20 a class) and so on.
A Word Of Caution
Y’all, this is important.
Don’t try to go out and start 9 different revenue streams all at once. You’ll be overwhelmed with trying to learn too much too quickly, and you won’t hit your goal.
Instead, focus on one stream at a time. Once you hit your survival goal for that month, then move on to the next revenue stream. As you’re working on your second revenue stream, don’t forget to continue your first revenue stream at the same time!
How do you know what revenue streams to add? Well, as your customers get to know you and ask you questions, pay attention to what they’re asking for and offer what they want!
Your Target Business Goal
This is the second branch of the STU Method. What is your target business goal? The first time I went through this exercise, my target dollar amount was to make $2,500 a month.
The good news is that once you do achieve your survival goal, it’s easy to replicate and increase how much you make because you already have the systems in place.
You simply start working on another revenue stream, as I mentioned above.
Your Ultimate Business Goal
For the third branch of the STU method, what is your ultimate monetary number? The one number that would make you fall out of your seat? Would you be shocked to learn that my number was $5,000 the first time I wrote it down?
To achieve your ultimate goal, follow the same process by continuing to add additional revenue streams after you hit your survival goal with your previous stream.
How To Make Business Goals Using The STU Method
Y’all, tonight, here’s your game plan. You’re going to sit down and create your survival goal. Then, you’re going to create your target goal, followed by your ultimate business goal. This step is essential because you can’t get to your goals if you don’t know what they are!
And really, it all starts with your survival goal because once you figure that out, you can work towards learning how to accomplish it and then replicate it again and again.
That’s all there is to it. Once you do all that, well, friends, you’ve hit your business goals!
More Craftpreneur Encouragement
If you loved this snippet of business coaching, be sure to also check out:
- Getting a Business Coach + Tips for Growing
- Scale Your Business With Assistants
- Tips on Building Your Business
- Business Process of SIO
If you need any help with centerpiece-making, bow-making, wreath-making, or crafting in general, be sure to check out more of our tutorials on How to Make Wreaths.
We would love to see your beautiful wreaths! Please share with us over at the How To Make Wreaths Facebook Group.
If you are interested in working with us and learning even more about how to create, run and grow a successful business, check out our coaching options at Damon’s Business coaching.
Just pin this STU Method for business goals below to find the blog post later!