That Randy Brown

Inverting Thinking around Earnings

I sometimes forget myself and get lost in the weeds when managing the books for Happy Acorn Ventures. I find myself pushing to get to my annual target of $500 WRR, and looking at my current income profile in terms of shortages, rather than wins.

Probably a better framing is to work on predictably getting my first milestone month over month, with some amount of runway, and then to move to the next one.

This is important because I need to be able to fire some bad clients, but as it is now, I'm waiting until I reach my last milestone, rather than earlier ones, to assess income stream viability.

It makes more sense to get to a milestone, and look at the income streams driving it, and ask if those income streams can help get to the next one. This also helps with pricing. I know I need to get 4 customers a month on a price point to make my milestones, but that dictates raising my prices a little bit. Or changing that number to 5 customers a month. Breaking down each sell into progress against a target income goal helps reframe the prices.