More Revenue Isn't Always the Right Goal for Your Business

More revenue doesn’t always mean a better business. Learn how to set business growth goals based on profitability and what your business really needs. 

If I asked you what you want for your subscription box business this year, there's a pretty good chance your answer would include making more money.

Maybe you want to have your first six-figure year, double what you did last year, or finally hit that subscriber number you've been working toward.

I understand. I've spent years growing businesses. I believe in (and teach) setting goals, knowing your numbers, and doing the things that move your business forward.

But after all these years of running my own businesses and helping thousands of other business owners grow theirs, I also know: 

More revenue isn't always the right goal.

You may need to make more profit from the sales you're already making. Keeping more of your current subscribers might make a bigger difference than finding a bunch of new ones. Or your business may have reached the point where you need to simplify a few things before you try to make it bigger.

That doesn't mean you don't want to grow. It means you need to know what kind of growth makes sense for your business.

More Revenue Doesn't Always Mean a Better Business

Inside Launch Your Box, I work with subscription box owners at all different stages of business. Some are working toward their first 100 subscribers while others have hundreds or even thousands. I have members who run their businesses on their own and others with teams and warehouses.

And yes, we talk about revenue. We celebrate big sales months and subscriber milestones. We set goals and make plans to grow.

But we also talk a LOT about profitability.

Because bringing in more money doesn't necessarily mean you're making more money.

Let's say one business does $300,000 in revenue and another does $500,000. If that second business had to spend significantly more on products, packaging, shipping, employees, warehouse space, ads, and everything else it took to generate that extra $200,000, which business is really doing better?

You can't answer that question by looking at revenue alone.

That's why I want you to pay attention to what it costs you to grow. If you add 500 subscribers, what happens to your expenses? Will you need to hire someone? Move into a bigger space? Buy more inventory up front? And after all of that, how much of that additional revenue will you actually keep?

I'm not saying those expenses aren't worth it. Investing in your business is part of growing it.

But more revenue only helps if the numbers make sense.

For more on profitability, listen to episode 153 of the Launch Your Box Podcast. 

Why Do You Want to Grow Your Business?

When someone tells me they want to grow their business, I want to know why.

Not because I think they shouldn't grow. I LOVE helping business owners grow!

I want to know what that growth is going to do for them.

You might be building your business so you can leave your 9–5 job. Bringing in more each month could give your family some financial breathing room. Maybe you're ready to hire someone to handle fulfillment so you can spend your time on the parts of the business that really need you.

And some of you want to build a BIG business. You want the team, the warehouse, thousands of subscribers, all of it. I love that, too.

The important thing is knowing what YOU want instead of deciding your business needs to get bigger simply because that's what business owners are supposed to want.

One of the reasons I love recurring revenue so much is because of the freedom it can create. But I've worked with enough business owners to know that freedom doesn't look the same for everyone.

A seven-figure business with a full team might be exactly what one person wants. Someone else may want to make a consistent income and still be the one picking her kids up from school every afternoon. Someone else might want to work part-time on her business and bring in enough income to cover “extras” like sports, vacations, or saving for college tuition. 

All can be successful businesses.

What Does Your Business Need Right Now?

This is where I want you to look at your own business.

Instead of automatically asking, "How can I make more money this year?" ask yourself "What does my business need right now?"

It may need more sales! If you've built a great offer, your subscribers are sticking around, and you have room to grow, bringing in more people may be exactly where your attention should go.

But take a look at the rest of your business, too.

• If you're bringing in new subscribers every month but losing almost as many, getting better at retention is probably going to do more for your business than working even harder to find new people. Learn more about retention here. 
• If you're making plenty of sales but there isn't enough money left at the end of the month, you need to look at your pricing and expenses. For more on pricing for profit! 
• And if you've grown so quickly that every day feels like putting out one fire after another, you may need help and better systems before you add another 500 subscribers to the mix.

The same goes for adding more things to sell. Before you create another product, another offer, or another subscription, make sure you're doing everything you can with what you already have.

Sometimes the best way to grow your business is to make the business you already have work better.

Don't Let Someone Else Set Your Business Goals

This is REALLY easy to do.

You're scrolling Instagram and see someone celebrating a huge sales month. Someone else just hired three new employees. Another business owner moved into a warehouse, launched a new offer, or hit a subscriber number you've been dreaming about.

Five minutes ago, you felt pretty good about your business. Now you're wondering if you're behind.

You're not.

You're looking at someone else's business with different goals, different expenses, different responsibilities, and a whole lot of information you don't know.

I've been an entrepreneur for a long time, and I promise you there will always be someone with a bigger number. That's why it's so important to know your own numbers and what you're trying to build.

Know how much you're making and how much you're spending. Pay attention to how long your subscribers are staying. Look at how much you and your team can handle right now.

Then set goals based on your business.

When More Revenue IS the Right Goal

Now, please don't read this post and think I told you not to set a big revenue goal.

That is NOT what I'm saying.

There have been seasons in my businesses when I wanted to grow, grow, and grow some more. And there will be more.

If people want what you're selling, your numbers are where they need to be, and your business is ready to handle more, go for it.

Set the big goal, make the plan, and do the work. I'll be right there cheering you on.

More revenue can give you and your family more choices. It can allow you to hire help, create jobs, serve more people, and do things in your business you couldn't do before.

Of course revenue matters. It's just not the only thing that matters.

Build the Business YOU Want

I talk a lot about recurring revenue because I've seen what it can do for business owners. Knowing you have customers coming back next month means you're not starting every month at zero. It helps you plan ahead and gives you an incredible opportunity to grow.

But that growth needs to make sense for you.

So before you decide your next goal needs to be another $100,000 in revenue or another 500 subscribers, look at your business as it is right now.

What would make it better?

More sales? More profit? Keeping your subscribers longer? Hiring help? Getting your time back? Finally leaving your 9–5?

Your answer may be completely different from the business owner sitting next to you inside Launch Your Box.

That's exactly how it should be.

Build the business YOU want.

Then set the goals that will help you build it.