There’s two big thoughts on my mind this morning as I write this. One good, one less good.
Thought #1: I’m off the pace on my goal for Q2 2020
Every morning, I follow the same morning routine. I wake up, and I write my goals down in my notebook. It’s always the same goals every day, including a daily-count down until how many days I have left until I turn 30.
Then, I grab my iPad. On the iPad, I read the saved notes I have on Evernote regarding my plan to get to $10K a day at 30. It contains tasks that I need to complete every quarter in order to reach that goal. Then, I go onto Zillow to find new properties to buy and get familiar with different real estate markets.
Here are the goals I have for this quarter on Evernote:
- Redesign $10K a day (in progress and will be complete)
- Close on the 24 unit that we’ve had our eye on for a while now
- Make $40K in consulting income
Unpacking those last two goals and how I’m thinking about those.
We could buy that 24 unit, I think. It would be a seller-financed, 10% down deal and come close to wiping out all savings. We have a detailed appraisal of the building, and will probably need an inspection (assume $5K). We will also need the detailed financials there to know that the building is cash flowing still with COVD to see if tenants are still paying rent.
It’s risky, to say the least. There also isn’t really any urgency to get this done earlier, outside of I want to be making the cashflow off of it as quickly as possible.
Overall, I think it’s roughly 50-50 whether or not we get this done.
Make $40K in consulting income
This is the bummer. If I want to make $40K in consulting income this quarter, that means I need to make $13,333 per month.
Since it’s May 10th, we are 40 of 90 days into the quarter (44%). However, I’ve made $16,838 which is 42% of goal. That’s not far of pace, but it’s not high enough of pace that things are going to be okay.
This is the graphical outline of net-profit.
The blue line is goal, while the orange line is actual. I was below goal last month, and I’m tracking below goal this month too. I really need to step it up here because I’m worried I’ll fall off pace.
I need to pitch on more work this week I think.
Thought #2: I’m very excited about my business plan
The other thing on my mind is directly related to that above chart as well.
If you notice, the blue line increases over the next 12 months. There’s a spike in ~4 months when I pay off my debt and I’m fully debt-free. That’s an exciting spike because it will help facilitate more take-home pay, which should help facilitate buying more real estate with cash on hand.
The more exciting spike is ~6 months later when that blue line starts growing astronomically fast.
That is primarily from my actual business starting to generate revenue. I completely recognize that I’m projecting extremely fast growth in my business. I also recognize that most businesses don’t do that.
But, there’s a big exception here. I’m not planning to try and build the next Airbnb.
My business is instead based around a couple core pieces:
- There is a clear target market/user
- I’m assuming they would be willing to pay for a monthly service
- I’m assuming they would be willing to pay several hundred dollars a month for this service
The several hundred dollars a month piece is, in particular, very important. For example, I’m assuming they would be willing to pay roughly $300 a month for this service. If I’m correct, which I believe I am, it means I only need:
- 10 customers to get to $3,000 in monthly income
- 100 customers to get to $30,000 monthly income
- 1,000 customers to get $300,000 monthly income, which is $10K a day
When I get a prospect on the phone for consulting, I close them at roughly a 70% clip.
There’s an old saying that says getting your first 100 customers are the hardest. I don’t think it will be that hard though. Check out this funnel
- 100 customers means that….
- I spoke to 143 customers on the phone (70% close rate), which means that…
- I reached out to 7,150 potential customers (2% of prospects emailed are willing to hop on the phone)
That makes the list of assumptions I’m making in this business are:
- I can reach out t0 7,150 customers
- These customers are willing to pay for the product
- These customers are willing to pay $300 a month
- I can fulfill the service they’re looking for
Now that I’ve got these assumptions, I can figure out how to prove or disprove them.
Reaching out to the customers is easy. That’s a combination of a paid Gmail account (lowers bounce rate and increases number of sends), Prospect.io (finds the people to send emails to and sends them), Calendly (to schedule meetings) and Zoom (for the meetings).
That’s easy and ~$200 a month. I could set that up in my sleep!
The harder assumptions are if customers are willing to pay for it, how much, and if I can fulfill.
I need to do 150 customer interviews and then work to fulfill the service!
Time to start doing user discovery emails.
What I did yesterday to make $10K a day at 30
The current phase of the plan
I’m in Phase #1: The Job & Side Hustle Phase. You can read more about the phases and my plan to get to $10K/a day at 30 here.
Wake up & sleep:
Whoop was being stupid so I don’t have anything here
Same! Ditto with Whoop being stupid.
Diet was coffee, eggs, and some spanikopita for dinner. 3/5 with 1 being the best.
My Day Job
Investment real estate
Everything I did up there!
I have a few projects going on now.
Sourcing new work
Nothing, but I did to do some!
Published the post
My fiancee and I spend some time together in the morning and evening.
No updates right now on trying to move
Rescue Time Daily Screenshot
Not a ton of hours here.
What I made today
Rental Income: $33
My Actual Business: $0
Affiliate: Not doing yet
WordPress Maintenance Site: Not doing yet
Dividend Income: Not doing yet
Micro-SAAS’s: Not doing yet,
Hotels: Not doing yet
Today’s pro-rated amount of monthly & yearly expenses
Once I pay off my debt, I’ll break out expenses into a line by line as well.
Today’s Income (pre-tax)
My plan for tomorrow
Tomorrow I need to finish up with the financial model and do some day job work!
About the Author & The $0-$10K/Day Case Study
Dean’s goal is to create $10,000/day in passive income through entrepreneurship. Too many people write “success porn” that skates over the struggles many face in entrepreneurship. His goal is to create something real that highlights the lack of sleep, disappointment from family, and setbacks you really face in entrepreneurship.
To read more about how this case study is set up, check out the ground rules here.
The hope is that this series of posts will inspire someone else out there to make their entrepreneurship dreams happen.
Dean Woods is currently an executive by day and a bootstrapped micro-startup CEO by night. Prior to working in startups, Dean was a management consultant. Dean graduated with honors from The Wharton School.