Benefit from your Revenue board in 5 simple steps
Your Revenue board is a type of board that allows you to map your financial streams. Enabling you to make smarter and strategic choices that you're music business will benefit from. We will elaborate on that in this article. But first it is important to understand what the revenue board is not- it’s not an administrative tool. Click here if your are looking for simple financial administration that is optimized for musicians.
So what is it then? The revenue board is a simplified yet typical grow management tool. It sets you on a journey where you'll learn to understand and optimize your underlying business processes; in this case your financial streams - And it should interest you as earning money is important because it enables you to fulfil your dream.
Step 1: Become aware
Part of the journey is to make yourself aware of what’s going on in your business. You do this by adding you're income streams and add you're revenues and assets. If you don’t have any income yet, skip this step.
Add your income streams and revenue
In the Revenue board assets are product types. So for example: one type of T-shirt. If you have four different CD releases then you have four assets. This is of importance because it says something about the purchase costs and the value of your assets.
Step 2: Set your financial goals
Determine your financial target and add it to your revenue board. Make sure to set your goal for a certain time-frame; for example one year or one quarter. Make your target is both challenging and realistic.
Step 3: Analyse your situation
Now you can become aware of your current financial situation (how very mindful!). If you don’t have any products yet, don’t worry. You know what to do; create product! Ask yourself what product connects with your target audience and what will be your unique selling point. Learn how to research your target market in academy or take the advice of your artist manager.
If you do have product:
First look at what specific products generates the most turnover.
Then look at what products gives you the most profit.
Bottom line is that the only thing that matters is how much profit you make.
Now you have the products that gives you the best profit, we suggest you to focus on a healthy mix of your top 2 or top 3 earning products to optimize your overall profit.
Step 4. make your conclusion and action plan
Now you have analysed your results, it’s time to make a conclusion. Keep it simple and actionable. It could look like this:
Step 5: Time for action
Great! Now that you have made a simple yet solid action plan where you plan to expand your brand by improving the sales of your most profitable assets, you can take this objective to your Focus board to plan your milestones and to projects to plan your tasks.