Client Number One - Signed, Sealed, Delivered!

The "One Million Dollars In 184 Days" Project produced its first paid client Friday. On an initial investment of $100.00, we acquired five (5) client prospects; our first paid client, an Executive Director of one of Chicago's most well known non-profit agencies, hired us to write a proposal design a website, and handle some technology services for her agency. In addition to the retainer she paid us, we may, before the end of the year, receive additional fees that may total as much as five figures, depending on how well we perform our grantwriting services. I hoisted a silent toast to our breakthrough; there's a lot of work to do, but we've taken an important first step.

Here's something very important about what we've accomplished: our venture is now profitably "in the black". I've always believed that no business ever went under that made a profit, even if that profit is only 1% after all taxes and expenses have been paid.

Like many would-be entrepreneurs, I've started new businesses and invested thousands or tens of thousands of dollars into equipment purchases, space rental, advertising and promotion, even staff hires - before I ever even had ONE PAID CLIENT to support my new business. I believe that 80% of all new businesses fail to survive their first three years of operation for one reason - they don't attract enough revenue from paying clients to cover expenses and generate a consistent profit.

The most important document you'll ever create in managing your new business enterprise is something accountants call a "P & L" statement. It's a month-by-month account of your expenses and income. Each month you spend more than you earn, you're in "the red", as accountants describe a business operating at a deficit. Each month your business generates more income than you spend in expenses, you're in "the black", or operating at a profit.

We started in July 2006. So our current P & L would look something like:

July 2006: Startup capital: $100.00
Expenses: $94.00
Income for July: $0.00
Net after expenses: $6.00

August 2006: Cash position at start of month: $6.00
Income from 1st client: $500.00
Expenses: $0.00 so far (no rent, phone, or other overhead expenses)
Net after expenses: $500.00 + $6.00 = $506.00

Today is August 5, so we're 36 days into the "One Million Dollars In 184 Days" project. Our cash position is $506.00. Our business is operating "in the black". Our challenge now: to invest our cash in ways that will grow the business and keep us operating at a profit.

That's Phase 1, Plan B.

Our First Paid Client! It's On Now!

Now we can have some fun! We got our first paid client - an Executive Director of a not-for-profit agency hired me to develop funding proposals for some new programs she wants to launch! Our presentations with the other four clients we recruited through our mailing and calls seemed to be very well-received! One of them, a pastor brought in to revitalize a small church in a low-income community, wants to hire me for technology services and program development!

The plan: close both deals on Friday, and see what we collect. Then launch Phase 1, Part B our project - earn $1,000,000 cash in 184 days. You're wondering what Part B is? You'll find out Saturday! I'm taking Friday off - it's my son's 3rd birthday!

Day 34: Startup capital: $100.00
Spent: $94.00
Current Balance: $6.00
Potential Income: TBA Saturday!

30 Days Into The Project - Five Prospects, Zero Dollars

I can believe this is the 30th day of our project - this month's been full of drama and angst; it's felt more like two months than 30 days.

Haven't made much progress in generating new clients and revenues; three calls from the mailing and two prospects gleaned from some Friday followup calls equals a yield of five client prospects and zero revenue dollars for our project's first thirty days.

We launched our new business project with $100.00, whuich forced us to focus on guerilla grind-it-out marketing techniques like a 100-letter mailing, e-mails and phone calls. My criteria for declaring the initial marketing effort success: acquire one paying client from the initial snail mailing, calls and e-mails;. With five prospects identified and scheduled for appointment, we do have a shot at snaring that first paid client.

Looking back on the first 30 days, how can we improve our marketing efforts?

Make sure the snail mailings go out on time.
Create a larger prospect list.
Call more prospects.
Develop a larger targeted e-mail list.
Design paper and electronic newsletters (*.pdf format) for distribution to the e-mail list.
Acquire more startup capital.

Our total results for July 2006:

Day 30: Startup capital: $100.00
Invested: $94.00
Balance: $6.00
Income: $0.00
Calls from mailing: 3
Prospects recruited from phone calls: 2
Total prospects: 5
Presentation appointments: 5