If you want to make a change in your career or profession, it can be a good exercise to understand how your income can be replaced. This is especially helpful if you’re looking to start a business but are not sure what may be involved.
Let’s say you are currently employed in a single job and earn $80,000 a year. It’s interesting to consider how this $80,000 would be divided by different numbers of clients.
1 client = $80,000 each. This is achieved by effectively getting a new job. The role though may have different elements that are more appealing – like a different bonus structure, access to better opportunities or it provides you with more fulfilment.
5 clients = $16,000 each. This may involve large-scale projects that take months to complete. Or it may involve high-touch engagements with a handful of clients.
20 clients = $4,000 each. This could be a freelancer model where you are supporting multiple clients. You could also be a consultant where you complete proposals or reports.
80 clients = $1,000 each. This could be doing courses, programs or workshops.
4,000 clients = $20 each. This could take the form of a subscription service, or a high-volume task that a lot of people need frequently.
This example was done through the lens of services rather than products, but it’s just as easy to do if you want to sell products instead. The exercise is designed to generate ideas for how your unique skill and value could replace your current wage (and ideally grow beyond it).
It also puts into clear terms the effort that may be required. If you provide a service for $20, you may not have appreciated what’s required to find 4,000 clients. Alternatively, if you provide a service for $4,000, will servicing 20 clients provide you with the lifestyle you desire?