“Profit is how we keep score in business.” Dr. Darnyelle Jervey Harmon
For the record, it is a big deal to generate $1,000,000 or more in revenue in your business. If you have accomplished this, you should be very grateful and proud of your accomplishment. You are a belief barrier breaker. But let’s be clear, the goal is not topline revenue success, it’s bottom-line revenue profit.
While there are 4.2% of US based small businesses that generate 7 figures or more each year according to several sources, we have no real idea what percentage profit 7 figures or more. I do believe it’s safe to say that if only 4.2% are generating topline revenue at this level, considerably less are profiting at this level. And let’s not forget that the statistics for women-owned, black-owned and black-women owned are considerably less at 1.9%, .9% and .5% respectively, so you can see why an episode like this is a disruptor.
In this episode, I share the formula that we have personally used to profit $1,000,000 for the last few years in our business. Now, I have to be honest; to pull this off, it’s going to take some serious understanding of your numbers – i.e. your pricing and expenses and how much you can actually set aside as profit at the transaction or programmatic level. Sadly, most entrepreneurs aren’t at a place where this is even a remote possibility for them. In our PROXIMITY, a Move to Millions Mastermind, we equip our clients to scale to and sustain a business that generates 7 figures a year and profits 7 figures in 1-3 years. That’s right; it’s going to take some time and clear systems and infrastructure to achieve this, but it is entirely possible.
I recommend that you listen in to this episode from your vision point and not your vantage point so that you can hear what’s possible for your business too. It’s the perfect time to be thinking at this level because you should be starting to work on your 2025 strategic plan for your business.
Profit is how we keep score in business so grab your Move to Millions Podcast notebook and listen in to discover:
- What needs to be true in order to position your company to profit $1M+ a year
- The level of financial acumen and understanding required to set a goal to increase your company profits to 7 figures
- The minimum profit threshold for your programs and offers
- How to price your programs and services
- The mindset required to focus on profit
- And so much more
Powerful Quotes During the Episode:
- “Spending every dime you make, means you have a hobby, not a viable, profitable business”
- “You cannot have a booming business when you have a busted life.”
- “The best way to be the change is to get this business to the million-dollar mark.”
- “Profit is how we keep score; you don’t even really have a business according to the IRS if it doesn’t make profit.”
- “It’s going to be hard to leave millions if you’re spending every dime that comes into your business.”
- “We want to get away from the days where you have to work for your money, where you have to toil for your labor. That’s an employee mindset. An entrepreneur’s mindset is one that says, my money is working for me.”
Want more of Darnyelle?
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FULL TRANSCRIPT
Darnyelle [00:00:00]:
Asterisk Sidebar there is a time and a place for a tax strategy that reduces the amount of profit you show on paper. Although you have profit in your business based on tax strategies, and that’s your business, you’re listening to the Move to Millions Podcast with Dr. Darnyelle Jervey Harmon, the place to be for high level conversations about all things millions, your mission mindset, methodologies, mandate movements, messaging, marketing metrics, and most definitely, your money. I am your host, spiritual business growth coach, doctor Darnyelle J. Harmon. Join me each week for inspiring stories, powerful interviews, and business growth strategy to help you experience abundance in your life. Because of your business, if you’re ready to move to your next level, everything. Let’s get this party started. Welcome back to the Move to Millions Podcast.
Darnyelle [00:00:59]:
Hey y’all, I’m so excited to be back with you for another episode. This happens to be your very first time listening. Can I just say welcome. Thank you so much for stopping by. I already know that you’re going to come back on a regular basis just by listening to this show. Your income is going up all the way up. Now, while this is technically a business Podcast, I do believe that life and business are congruent and you cannot have a booming business when you have a busted life. So I’m going to talk about topics that impact our ideal clients service based entrepreneurs that are generating income on the Move to Millions Continuum that want to build businesses that serve them financially and spiritually to and beyond the million dollar mark.
Darnyelle [00:01:46]:
If you’re not sure what I mean when I say Move to Millions Continuum, go back to listen to the episode where I get into the Move to Millions Continuum 2.0. I am the absolute best at combining spiritual principles with business growth strategy that focuses on real business and I have the receipts to back it up. Now you won’t ever hear me name drop, but just know that many of the million dollar CEO’s you love, know and trust have worked with your girl. At my live event this past May, just 20 of our clients had a combined gross revenue of 233.1 million and we have helped 45 1st time million dollar CEO’s and 25 next million dollar CEO’s achieve the million or multimillion dollar mark using our proven Move to Millions method. If you want to go deep on the methods that I share, then I highly recommend that you grab a copy of my best selling book Move to Millions:The Proven Framework to Become a Million Dollar CEO with Grace & Ease Instead of Hustle & Grind. You can buy it wherever you like to buy books or you can go to movetomillionsbook.com. now, before we jump into today’s episode, I hope that you will do me a favor and rate and review the Podcast. When you do so, you help us to deepen our reach around the world.
Darnyelle [00:03:10]:
We’re currently in over 133 countries, but there are more countries and so we want to be in all of them. We want this movement to continue to spread like wildfire because we believe that a seven figure business is the floor, not the ceiling. And it is hard to be the change when you don’t have any. And the best way to be the change is to get this business to the million dollar mark.
So I’m so excited that you are here today. I’m answering a question that I have gotten very often in my DM’s and I love this question. So I’m so excited to answer it for you today. And the question is simply this.
Darnyelle [00:03:46]:
How, Darnyelle, can I profit a million dollars in my business?
Now, what I imagine they were saying in between asking just that very simple question is, yeah, Move to Millions is great. Getting my top line revenue to the million dollar mark is great. But how do I get my bottom line revenue to the million dollar mark? And so that’s is what we are going to talk about today. I’m so excited because these are the kinds of conversations I get to have with my clients that are in my proximity. Mastermind and my legacy collective. They are working with us to get to the million dollar mark in our proximity. Mastermind. And once they’ve gotten to the million dollar mark, they transition into our legacy collective, where we help them to multiply those millions and to get to the point where they are generating a million dollars a year and personal revenue.
Darnyelle [00:04:33]:
So this is where I get to have this conversation. And so being able to have it with you right now has me so excited. Has me tickled purple. Let’s jump in. Okay, so again, in this episode, we are talking about how to profit $1 million in your business. Now, I’m going to give you a plan that will allow you to profit 1 million in the next one to three years. You get to decide how quickly you want to do it. Now, some assumptions that we have to make sure you have in place before you can even entertain the possibility of generating a million dollars on the bottom line and profiting your business.
Darnyelle [00:05:11]:
Number one, you have a business that solves a real problem for clients that are willing and able to invest in themselves through you. And your company is already making money. You should be already profitable. I’m gonna put a little asterisk there because depending upon what strategies your financial management team and tax professionals have you using in your business, you may be profitable but not showing profitable on your tax return and that’s your business. Right. But your business should already be solving a problem and it should already be making money. Number two, you have a defined signature framework, process or methodology, and it is working and getting results for your clients. Now, our clients are primarily service based entrepreneurs, coaches, consultants, accountants, attorneys, financial management professionals and interior designers are the companies we work with the most, but we work with all service based businesses.
Darnyelle [00:06:13]:
Right? Number three, you have pricing set to give you at least a 60% profit margin at the transaction level. So every time you enroll somebody in your signature offer or any of the offers in your offer suite, you are generating at least 60% in profit on them. Number four, you have a good reign on your business expenses to fulfill the program that you’re selling at a 60% profit. And number five, you run a lean business and can afford to put a substantial amount of your profits aside while still being able to handle the operating expenses, pay your team, pay your quarterly taxes, et cetera of your company. Let’s talk about why these things are important and why you want to get these fundamentals in place before you try to profit at the million dollar mark. Now, should you be trying to profit every year in your business? Absolutely. Because profit is how we keep score. Hey, hey, hey.
Darnyelle [00:07:08]:
Wanted to pop into this episode really, really quickly to make sure that you know about my brand new summer masterclass series, the seven figure summer. Listen, you’re not crazy. The marketplace has changed, and as a result of that, you need tried and true strategies that are going to help to make sure that you are on track for your first or next seven figures as early as this summer. Join me beginning Tuesday, July 16, for our powerful three part masterclass series, the seven figure summer success series. By grabbing your free seat right now at seven figuresummer.com. you don’t even really have a business according to the IR’s if it doesn’t make profit again. Asterisk Sidebar there is a time and a place for a tax strategy that reduces the amount of profit you show on paper, although you have profit in your business based on tax strategies, and that’s your business. But we don’t want every dime you earn to be going right back out in your business.
Darnyelle [00:08:09]:
That’s, my friends, is a hobby. That, my friends, is a problem because that is not going to create financial legacy and while I want you to pass down your recipes, I also want you to pass down something they can fold so that they can change the way that they move, live, act and shift a generational trajectory for your family lineage. Right? So why do you need to have a business that’s already make money, have a proven process and system, have great pricing, have a good rein on your business expenses and run a lean business? Because these are the indications of a company that can scale and be able to sustain it. And I am not about. Just let me be clear for 2 seconds. I love when God gave me Move to Millions. I love it, I’m grateful for it. But for me to make a million dollars in your business and to spend all of it, it was a waste of the amount of energy you are expending to create at that level.
Darnyelle [00:09:05]:
To not have something left over to show for is a whole problem. And that’s not what I’m about. I’m about millions, making them, moving them and leaving them. And it’s going to be hard to leave millions if you’re spending every dime that comes into your business. So while these assumptions are the baseline for setting up a business that you can scale and sustain, it’s the baseline for being able to create a financial legacy through your business as well. Okay, now let’s talk about the steps themselves. And this is going to, this is an example that I’m going to share with you based on what we actually do ourselves in our business to profit at least a million dollars a year based on our gross revenue. So first thing that you want to do is you want to make sure.
Darnyelle [00:09:50]:
Now, I teach about having your own leverage and scale offer suite. And in your offer suite you’re going to have a series of offers that you will offer at various times based on what’s happening in the market, right? So you have a potential to have, I believe it’s six offers. So a soft offer, a scalable offer, a superb offer, a signature offer, a select offer and a significant offer. So six offers, I feel like I need a 7th offer because that just doesn’t feel right to stop there. So anyway. But you’re you right now we have six offers in the office suite. I’m gonna come up with the 7th because it just feels right to have seven and not six. Six is incomplete.
Darnyelle [00:10:28]:
So you are going to have all of these offers. One of these offers, and most typically this is what we consider to be your select offer, is an offer that is priced at $30,000 or more. Now for the purposes of this example of how you can use your current business and the offers that you’re making right now to clients to profit a million dollars at the end of one to three years, you decide to is that this select offer is going to be priced at $35,000. And it’s going to solve a spice problem. A specific and substantive, persistent and pervasive, immediate and insurmountable, clear, conscious and contrarian, expensive and expansive problem. There is an episode on the Podcast where I break down the spice problem. We’ll tag it in the show notes so that you can get to it relatively quickly. You want to solve a spice problem for your most ideal clients with a spice solution.
Darnyelle [00:11:21]:
And the investment for someone to access this solution is going to be $35,000 in this example. Second thing that you have to do is you have to make sure that your expenses to fulfill the program do not exceed $15,000. And that’s all in. That’s what you pay the team, what you pay yourself, your overhead expenses, any direct costs associated with it, the taxes that are associated with that transaction. Because even if you are working with your tax strategist to pay less taxes at the end of the year, you still need to be appropriating those taxes at every transaction to an account that is set aside so that when it’s time to pay taxes, if you must, you have the money to do so. If you don’t end up having to use that money to pay taxes, you can then reinvest it in your business in some way, right? So no more than $15,000 in expenses. All in. That’s going to leave $20,000 profit per sale of that program.
Darnyelle [00:12:20]:
Every time you sell your $35,000 offer, you are netting $20,000. That’s the bomb. Five figure profit. Oh, I love the way that sounds. Then what you’re going to do with that 20,000 is you’re going to take 50% of the profit, or 10,000, and you’re going to put it in, put it aside. At minimum, I recommend that you have a high yield savings account, but you want to check with your financial advisor to make sure that that’s the best option for you. And then the other 50% you’re going to keep in cash reserves for your company. Your first goal for your company is that you have at least three months fixed expenses on the side in case something happens.
Darnyelle [00:13:01]:
Right now we are in a mature market. For the last four years, we have been in a growth market because of Covid-19 from 2019 through 2023, we were in a growth market and a growth market, everything explodes. You literally could say hello and make money on the Internet. Some of y’all started businesses during Covid-19 and participated in what many are calling the great money grab. Well, you know that money. The money grab is over from the standpoint of what was happening during the growth market. We have returned to our pre Covid-19 marketplace, which is a mature market. In a more mature market, the buyer is more discerning, they are more skeptical, and the buyer sales cycle has elongated again.
Darnyelle [00:13:47]:
So it’s taking longer to close a higher end sale. Now there is still a portion of the market that is accepting and investing in offers that are under a certain threshold. And this is why inside of your offer suite, you need to have options in every price point. So let me just quickly sidebar and talk about the offer suite high level for each of the offers. So you want to have a soft offer. Soft offer is something that is priced less than $1,000. The max it would be is $1,000. Typically this is where you see if you do a free training, but then you give them the option to upgrade to vip.
Darnyelle [00:14:30]:
That’s a soft offer. People also call these offers your SLO funnels, your self liquidating offers, or your mvp’s, your minimally viable product offers under $1,000. That’s a soft offer. Then you want a scalable offer. Scalable offer is priced from 1000 up to 5000. This is a completely passive offer that you can bring to the market and you can sell it between one and 5000. And it’s scalable. You could get a gazillion people into that offer.
Darnyelle [00:15:03]:
Then you want a superb offer. Superb offer is priced at 5000 up to 15,000. And this superb offer is typically going to be a little bit more support and interaction. Then you’re going to have your signature offer. Your signature offer is based on your signature framework, framework or methodology. It is what you are known for. And that offer is typically going to be priced between 15,030 thousand. Then you have your select offer that is priced at 30,000, up to 100,000, and then you have a significant offer that is priced over $100,000.
Darnyelle [00:15:44]:
That’s the offer suite, right? So just high level saying that there because it’s important that you understand that, because you’re going to figure out which of your offers you can charge at least $35,000 for in order to use this example. Now when you get this $10,000 that you are setting aside, you’re going to, it depends on how quickly you’re doing it. If you want to do it in one year, then that means you need to sell 100 people into your select offer at $35,000 so that you will be able to take $10,000 of every $35,000 sale and put it aside for 100 people to generate a million dollars in a year. If you’re going to do it in two years, then you are only going to need 50 clients to do it. If you’re going to do it in three years, then it’s going to be, it’s still going to be, you know, how quickly you do it is going to depend on all of the variables, right? So if you’re putting that 10,000 aside for 100 clients, you can do it. It’s going to take you longer. If you can do 100 clients in a year, that’s great, but it’s 100 clients at $10,000. So do you want to bring on 100 clients in one year, or do you want to bring on 100 clients in two years, meaning 50 clients each year? Or do you want to bring on a hundred clients in three years, meaning roughly 35 clients a year? You get to decide at the end of one to three years, putting $10,000 aside for every $35,000 sale.
Darnyelle [00:17:13]:
So this is not every sale, this is just your signature, your select offer sales. You will have net $1 million in your business. You also will have a million dollars in your cash reserves for your company. Okay, can we just talk about that for a second? Having a million dollars in cash reserves and hopefully not all sitting in a bank account. I’m not a financial advisor. I don’t play one on tv. I’m going to give you some ideas of what you can do with your profit, but you absolutely want to talk with your financial management professionals so that you are doing what you should be doing to maximize that money. And again, at minimum, you want them in a high yield savings account because then they’re going to earn about 5% for you.
Darnyelle [00:17:54]:
But you might want to put them into cds, you might want to invest in the stock market, you might want to buy real estate. Like all of those things are potential things that you can do put towards your retirement. If you have a Sep account and a Roth IRA, like various tools that can be utilized to help you to save the money. So what are some of the things you can do with this profit that’s left over? I just alluded to a few of them invest in real estate. That’s one of the things that I do. My goal is to buy one property a year that becomes a rental property or use in some other way. So the house that we bought last year is our work home. Our workhouse, as I call it, a workhouse is I didn’t want to go into traditional office space, so I bought a house that we work out of.
Darnyelle [00:18:43]:
I still wanted that house, homie feeling, you know, like working from home but not working from home so that I would have some separation. So I bought a house that we work in. But I also have other properties. Most of them are multi units, either duplexes or four family homes that we rent and we generate real estate investment income on. So my goal every single year is to buy at least one property with the profit that comes in. Something that we’re starting to get into is I’m now buying complimentary businesses that will extend how we serve our clients by offering them other services that they require in order to grow their business. As an example, because I’m a business coach, some of the companies that we are either a in the process of buying or looking to buy in the next three to five years are a bookkeeping and accounting firm, a marketing and branding agency, a production studio, a virtual assisting or staffing company because these are all companies that my clients will need. I know that’s a real boss.
Darnyelle [00:19:52]:
But this is what you do with your profit, right? So that your money is making you money. If you have millions on your mind, then you need to get in the house. Haus of Millionsis our up leveled suite of business advisory programs for entrepreneurs and small business owners ready for community and connections to accelerate their cash flow. Learn [email protected] the reviews are in move two millions. The proven framework to become a million dollar CEO with grace and ease instead of hustle and grind is a best seller. With thousands of copies sold, we are raising a generation of million dollar CEO’s. You got next. Grab your copy in our bonuses today at Move to Millions book.com.
Darnyelle [00:20:39]:
want to know what it’s like to work with me and the incredible factor university coaching team? You can get started today with the Move to Millions 90 day business growth planner. 90 days at a time, you’ll be setting your business on a trajectory that will make the Move to Millions happen much faster for you. It’s got everything that you need to track. Every strategy, every sale, all of your KPI’s, as well as your self care and life transformational needs. We made sure we left nothing out of this amazing planner. And by accessing the planner, you’ll get a behind the scenes view of what it’s like to work with me and my team. Go grab yours [email protected]. dot we want to get away from the days where you have to work for your money, where you have to toil for your labor.
Darnyelle [00:21:26]:
That’s an employee mindset. An entrepreneur’s mindset is one that says, my money is working for me. Right? Other things that you can do with your profits. Of course. You want to make sure that you have a financial advisor as a part of your financial management team that is helping you to invest in your retirement, right? You might want to create a fun money account for things that you want to do or things you want to buy, vacations you want to take. You want to invest in your marketing. Marketing is one of those things you never stop doing, no matter what’s happening in the marketplace. You might want to invest in your employees, whether that means bringing on additional team members if they are required, or developing the team members that you have.
Darnyelle [00:22:10]:
You might want to invest in your infrastructure, right? You might want to build your own software. That’s another way to invest your money in a complimentary business, to produce a software that now you can sell to your clients. So this is going to make your money, make you money. But the ultimate question that I was asked, which I know I answered, is, how can you profit a million dollars? So this is one example, and this is the example that we use in our company to profit a million dollars every single year in the business. Now, in order for us to profit a million dollars in the business, we also need to know and understand how much it costs to run our business, right? So you’re going to need, that’s why I said you want to be fiscally responsible. You want to be focused on a lean business. You want to know what your numbers look like so that you can identify and then move in the direction of generating profit at that level. But here’s the thing, y’all, it doesn’t have to be hard.
Darnyelle [00:23:05]:
It gets to be easy if you understand what money is, how to be in alignment and embody the money, and how to make sure that you are solving a problem that your clients have been unsuccessful at solving on their own and charging at a rate that allows you to profit. I think about profit first, the book by Mike Michalowicz, which changed my life. You’ve heard me talk about that before, and getting your profit on the front end, not waiting to see what’s left over. Like entrepreneurs, we don’t do leftovers. We profit first. And this is a great way to help you to set up your business to profit first. So now you’ve got some homework. You know what you need to do in order to set your business up to profit a million dollars over the next one to three years.
Darnyelle [00:23:49]:
Do me a favorite of take a picture of however you’re listening to this episode. Tag me in a story on instagram and tell me, are you going to profit a million dollars in one, two, or three years? What’s it going to be for you? That’s what I want to know. Because I want more of us to not just be making the Move to Millions and making a million dollars on the front end, but making the Move to Millions and profiting a million dollars on the back end. I know it’s possible. I’ve done it. We’ve had other clients do it, and I know you can do it too. And if we can support you as you endeavor to engage in this process, to get your business solidly to and beyond seven figures so that you can profit a million dollars and you need support, business advisory support. We’d love to chat with you.
Darnyelle [00:24:37]:
You can go to either movetomillions.com or Haus of Millions to learn about our business advisory programs. I’ll see you guys next time. Take care. Thank you for joining me for the Move to Millions Podcast. If this episode has impacted you in any way, would you please take a moment and rate and review? Doing so helps us to deepen our impact and expand our reach around the world. And if you are ready to start your very own Move to Millions, I highly recommend that you order your very own copy of my brand new best selling book, move two millions, the proven framework to become a million dollar CEO with grace and ease instead of hustle and grind. You can get your copy and our bonuses [email protected]. until next time.
Darnyelle [00:25:26]:
Remember, millions are your birthright and to access them you need only move. I’ll see you next time.
