Goal Setting For £10,000 Per Month Sales

amazon fba business Oct 01, 2021
 

In this blog post, I am going to be talking about goals. I am going to be talking about achieving your goals, by creating systems.

So, hopefully, this is going to be a very thought-provoking blog post for you, something which you can get your teeth into, something that you can sit down in your spare time, and you can reverse engineer the goals that you have in your life and business. The chances are that you have goals; the chances are that you have set yourself goals, and you are a part of that 50% who are more likely to achieve goals, if you have got them written down. 

One of the things which Kev absolutely believes in is reverse engineering those goals, and what you have to do on a daily basis, to make them become a reality, to give you the best chance of making your goals become a reality. 

So, in this blog post, we are going to have a couple of examples, where we are going to be breaking down some business goals, some health and fitness goals, and then, at some point, you can do these in your own goals. 

50% of people are more likely to achieve their goals, if they write their goals down

 Setting yourself goals is the first step of making the invisible, visible. Firstly, you have to think of what it is you want to create, what you want to do and what you want to become. By reverse engineering and creating systems on a daily basis, you are going to make that invisible become visible. 

Learn more on how you can achieve your goals here:

 

There is a study by Gail Matthews from the Dominican University, which has been proved, that strategies for effective goal achievements include:

  • Writing down goals
  • Sharing your goals
  • Sharing progress towards your goals

If you couple these three things together, write them down, share them, then giving progress updates, you are more likely proven to achieve your goals. 

Systems is a very robotic term, when you think of systems, you think of machines, you think of cogs, cars, you think of automation and robots, but the truth is, to create anything, you have got to become very robotic. Another term that we have for systems, is habits. What do you do on a daily basis? What do you do on a weekly basis? What do you do on a monthly basis? What you do on a regularly basis is what you will become.

Kev has created a video on the daily habits which have changed his life, watch below:

Systems will make you work smarter, and make it seem like it's sustainable. 

I'm going to be starting with business goals.

You can see in the screenshot, we have a lot of components all about business. And in this example, what I want to share with you is, if you have got an eCommerce business, and chances are, you will have an Amazon business, one of the goals which we all have is how many sales do you want on a monthly basis? We naturally do this. We are always focused on the actual outcome, which is the goal.

But, what we need to do, and the reason why creating systems makes a huge part of this, is because we want to reverse engineer this; we want to reverse engineer this big goal, and make it small - make it attainable today. What have you got to do today? What is in your grasp? What is it that you have to do with you, your team, or what attentions do you ultimately need to take to make this become a reality. 

Think about it. If you have got a 10k per month goal, that is what you want to achieve; you want to get to £10,000 per month. Now, there are going to be some notes to make here. Let's say you know exactly what you are doing, and you are purchasing the right products. You want to make 10k per month in sales, but let's reverse engineer this. Let's find out what you actually need to do today.

 what is your average sell for price?

So, thinking of the sales per month - 10k, the first component is what is your average sell for price? Because what we want to do is reverse engineer these numbers down. So, let's say it's £10 per unit, the chances are you are higher than that. But let's say it's £10 per unit. Based on this, if you know what your average sell for price is per unit, you can then work out how many units you would have to sell in order to get to that £10,000. So, if it is 10 per unit, then that makes sense, that you need to sell 1000 units.

Units Sold

If it is 1000 units, think about how many units you would have had to ship. How many units have you got live, for you to actually sell 1000 units, you would need to have at least 1000 units there.

The reality is, this is based 100% off 100 of your products all selling. So, if you ship 1000 units, then they all 1000% sell. 

The chances are, you may not be at 100%, you may not have the perfect business. Any business, whether it is Amazon, Asda, it doesn't matter, chances are, no one has got a perfect business, where they sell absolutely everything.

Number of Units Shipped

Let's assume that you have a 10% buffer, you have got 10% of your products which don't sell in that first month. So, this then means 10%, just to give us a number, let's say you had 11,000 units live, and you know 10% may not sell. So now you have got 1100 units. What is this per day?

Units Shipped Per Day

In terms of how many units you have had to ship on a daily basis, to get to that point. This is giving us some attainable numbers to focus on a daily basis. So, let's say you have got 22 days shipping, Monday to Friday, every month. You are talking about 50 units.

Average Number of ASINS Purchased?

If you think of how many units you are purchasing per unit. Take a look at your unit log, and let's say for example, last month on average, you have been purchasing 5 units per ASIN. 

yellow and white plastic box lot

Number of Winners Per Day

What's then the number of winners per day to purchase those units? You are looking at around 10 units. 

Average Percentage of Winners vs Losers

Then think about what your average percentage of winners are vs losers. For example, let's say it's 50%.

Sourcing Leads

This starts to give you a number of sourcing leads per day, that you have got to come into your business. So, let's say this is 20 leads.

Average Buying Cost

Then, what is your average buying cost? Let's say your sell for price is £5 per unit, you are purchasing 50 units per day, you are talking around £250 per day. 

What I'm doing here, is trying to give you some thought-provoking, reverse engineering ideas.

 

These numbers aren't going to be right. There is going to be something in those numbers which doesn't make sense. But, what you are going to want to do, is apply this into your business right now, by looking at each of these questions. Then you can start to reverse engineer this.

If you want to get to £100,000 per month, but you have only got 10 leads coming into your business, then these will show you how it's not physically possible to get to your ultimate goal. 

From this, you are developing systems into your business, you're giving yourself a little more clarity on what numbers make up the big goal, the big KPI that we always look at, which is sales.

Instead of just looking how many sales you are getting per day, you need to dig down deeper into as many components on what makes those sales up. And therefore, just from reverse engineer, you can then start to develop so many systems around this.

You can now start to develop your inventory health systems, and develop the clearance sections, and what you are going to do to get rid of those products. If you think in terms of your average sell for price, or the average number of units sold, for you to have sold those products, you would have had to have the buy box, for you to make those sales. 

But you can then start to think about your re-pricer, you can start to think about how many products are at your minimum, how many products are at your maximum, there are so many things which you can start to dig deeper into. 

You are going to have some stock which is damaged, being lost, warehouse damaged, distributed damage, or defective, or you are going to have returns. In reality, it becomes a lot more complex.

What we want to do, when it comes to actually achieving your goals, your specific goals, in your business, the systems, the targets, you have got to break it down, not just on an overview level. But what it is per month, per week, and per day.

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