Understanding Fulfilment Capacity.
Today, I am going to share with you a golden nugget from one of my many recordings I share with paying clients.
This is just a snippet, but I think it’ll really help.
‘How to understand fulfilment capacity within your lifestyle coaching business’.
Your fulfilment capacity is how many active clients you can manage at any given time without sacrificing performance and results.
So, let me share with you an example.
Let’s say you work with Online or Offline clients on a 1to1 basis.
Typically you lead 1 hour a week of coaching calls per client.
You also do 30ish minutes weekly of programming, messaging and general support.
This means you spend 90 minutes total per 1 to 1 client you work with per week.
Assuming a 40 hour work week for you, and you have a 3 month offer with an offer price of £1500 for the 3 months.
You spend 10 hours a week on marketing and sales calls each week (although it is typically more).
Then you spend 30 hours a week for fulfilment and directly working with your clients.
30 hours / 90 minutes = You can work with 20 clients total at any given time.
Your fulfilment capacity is 20 clients based on the numbers above.
So how does this affect monthly revenue within your business and what is the threshold you have for new sales?
If we say you are starting with zero clients right now…
Let us take your fulfilment capacity… 20 (clients) and divide this by 3 as you have a three month offer.
This would mean that a rough monthly sales threshold for your business is 6 - 7 new clients per month that you could onboard.
6 (sales) x £1500(offer price) = £9k.
Your fulfilment capacity is 20 clients.
However, the rough front end threshold for your business revenue = 6 new sales or £9k in revenue if they all pay in full.
To be clear, this threshold is not a cap for your sales because if you can keep making more sales, do so!
But this threshold for sales or revenue will act as a signal that you may need to adapt your offer or increase fulfilment capacity in the near future if you continue the same pace of new sales coming in the door.
So, what do I recommend from here?
Establish your fulfilment capacity.
Check if you are already near your fulfilment capacity and have space for new clients / growth.
Recognise what your monthly threshold is for your business, so you can scale your fulfilment when required.
With 2 clients of mine, the limiting barrier to growing the business was their fulfilment capacity.
They were at 40 active clients and $20k a month, unable to surpass this.
No ability to serve more clients, no space to grow.
Within 2 months, we were able to 2.5x their fulfilment capacity, and double their business revenue to $40k per month and they are now on track for their second $100k quarter of the year.
You can do the same.
Anyway, that was a lot of info in a short amount of time…
If you need help with this, send me a personal message & I’ll be happy to help you scale your business and optimize your profits.
Speak soon.
Samuel Main