Your Escape Number - Steph Gordon

Your Escape Number side hustler

As a the toughest, most draining piece of the puzzle is not the long hours or the double life, it is the unknown. Not knowing if you’re good enough Not knowing if you are working your tail off for nothing Not knowing if you’ll ever “make it” Not knowing what “making it” really means Not knowing if you will ever actually escape the cubicle Not knowing... The questions are what hold side hustlers back and ultimately what prevents some of the most amazing businesses from ever taking flight.

Your life will be no better than the plans you make and the action you take. You are the architect and builder of your own life, fortune, destiny. -Alfred A. Montapert

So what can we do to alleviate some of the unknown and make sure that our hard work is aiming towards our ultimate goals?

Plan, people! The number one thing that keeps side hustlers in their cubicle is money. Money pays the bills and paychecks are comfy, but you can make the jump to full time entrepreneurship in a responsible, calculated and deliberate way. In a way that keeps a roof over your head, shoes on your feet and food in your fridge. Steph Gordon | www.stephgordon.com | © Steph Gordon 2013

You don’t have to blindly leap.

You just need an Escape Number! In the following pages we’re going to walk through your current finances, the finances as you see them when you become a full time entrepreneur and what kind of savings you want to have to feel comfortable once you take the leap. Ultimately, we’re going to identify your personal Escape Number. Then, we’re going to look at your business and figure out exactly what you need to be doing and selling to reach that number.

Note: These calculations are all based on your comfort level and your personal situation. Please try to be as accurate and honest throughout so you have the most accurate Escape Number.

Steph Gordon | www.stephgordon.com | © Steph Gordon 2013

Your Escape Number Worksheet Instructions Using Worksheet #1 Step 1: Identify all of your current monthly expenses. Fill in the name of the expense in column one, then fill in the monthly value of the expense in column two. Step 2: We live in a world where we are constantly reminded of the stuff we “need.” I think a lot of us get caught up in the moment and end up spending money on things we don’t really need. And, frankly, sometimes our stuff helps to numb us when we’re living lives we don’t love.

Note: Accuracy is really important. I use Mint.com which is an amazing financial resource to track your money (among tons of other super valuable functions.) And the best part is it’s totally free. Sign up, link your accounts and then you can really look at where your money is going.

As you look towards the future it’s time to evaluate how much you really want to escape your cubicle and if there are any current expenses that might be less important than your escape. Sometimes there’s a tough choice to make but I often frame it as, “Would I rather have Netflix and HBO or be able to work from home and do work I love every single day?” Well, that’s easy. So, Netflix and HBO have got to go. Maybe there’s nothing you want to eliminate and that’s ok, it’s a personal choice and everyone’s escape journey is different. But, the point here is that I want you to take the time to really consciously evaluate where you are spending your money and figure out if that is in alignment with what you want in your life. Right now, go take a look at if there are any expenses that you want to eliminate. Mark them in column three and write the value of those expenses in column four. Step 3: When you do finally make the leap into full time entrepreneurship it’s very likely that some expenses you currently have will decrease or be completely eliminated. For example, your gas bill may be significantly lowered or completely eliminated based on the absence of a commute. Similarly, if you are driving less miles you will likely qualify for a lower rate on your car insurance (call your agent to check.). If you eat lunch out everyday for convenience but plan to eat lunch at home when you work from home your restaurant expenses will decrease significantly.

Steph Gordon | www.stephgordon.com | © Steph Gordon 2013

Example: If you spend $100 per month on gas currently, but when you work from you will only spend $25 then enter $75, which is the savings, in column four.

Now, I want you to move on to Worksheet #2.

Evaluate areas where you will be decreasing or eliminating expenses after you leave your 9-to5. Mark the expenses you can reduce and/or eliminate in column 3 and write the value of the savings in column 4. Now it’s time to total everything up and figure out what your monthly living expenses will be post cubicle. Total each of the columns and then add and subtract them as denoted in the totals line. Fill in your Living Expenses Total. Great job!! This was the hardest part. You’re 75% of the way to your Escape Number.

In the same way that you may decrease or eliminate certain expenses when you leave your cubicle, there will likely be additional expenses incurred as you run your business. Think about what expenses may be incurred, most notably health insurance, and fill the name and value of the expenses into Worksheet 2. Then total Worksheet 2’s expenses to find out what entrepreneurial expenses need to be added to your monthly total.

Savings Finally, we need to talk about how much savings you need to feel comfortable. Everyone has an opinion on this but it’s such a personal choice. Perhaps, you know that you won’t leave your 9-to-5 until you have at least 10 paying clients. And in the event that you have 10 paying clients, based on your tolerance for risk and your business model you’d feel comfortable if you had two months of savings in the bank. Or, perhaps you hate risk and you feel the only way that you could make empowered decisions in your business is if you know you have six, eight or twelve months of savings in the bank. That’s ok too. Figure out how many months of savings you need to have to feel great before taking the leap and fill that in the savings needs space on Worksheet #2. Steph Gordon | www.stephgordon.com | © Steph Gordon 2013

So, what are your numbers? Do you have both a savings amount total and your monthly total? ____________ + ____________ = ____________ Monthly Expenses Total

Savings Total

Escape Number

My Escape Number Is: ___________________

Viola! You now know your Escape Number. How do you feel? Maybe the number is smaller than you expected and you’re relieved and ecstatic. Or perhaps it’s larger than you were expecting and you’re feeling nervous and unsure.

Don’t worry!

Now we’re going to talk about exactly what you need to be doing to make that Escape Number a reality... Sooner than you think!

Steph Gordon | www.stephgordon.com | © Steph Gordon 2013

Escape Number Worksheet #1 Current Monthly Expenses

Monthly Amount

Reduce or Eliminate?

Amount saved

Gas

$100

Reduce

$75

____________ - ____________ = ____________ (Living Expenses Total) total monthly expenses

amount saved by reduction or elimination

Steph Gordon | www.stephgordon.com | © Steph Gordon 2013

Escape Number Worksheet #2 Entrepreneurial Expense

Value

Entrepreneurial Expenses Total: _____________ Monthly Expenses Total ____________ + ____________ = ____________ Living Expenses Total

Entrepreneurial Expenses Total

Monthly Expenses Total

Savings Number of months of savings you need to feel comfortable = ____________ ____________ x ____________ = ____________ Monthly Expenses Total

# of months of savings

Savings Total

Steph Gordon | www.stephgordon.com | © Steph Gordon 2013

Hitting Your Escape Number It’s great to know your number but now you need to get clear on how you’re going to make that number a reality. First, we need to zero in on what you are offering (or plan to offer.) Below list out your offerings and the corresponding values. Offering

Value

Before we go any further I want to advise you to stretch yourself a little bit. Set lofty but attainable goals. Be realistic but also make yourself a bit uncomfortable. It’s all about striking that balance! Steph Gordon | www.stephgordon.com | © Steph Gordon 2013

Great! Now you know exactly what you’re working with to bring the dough into your biz.

So, let’s jump right into the number crunching. Based on your Escape Number I want you to start doing some calculations below to figure out what combination of your offerings you would need to sell to reach your number. The calculations are up to you. You could calculate how many, and what combo of products, you need to sell in order to hit you Escape Number in, say, six months. Or, you could calculate what you need to be selling on a daily or weekly basis to reach your goal of escaping in three months. It’s totally up to you! The point here is that you are being intentional and getting crystal clear on what you need to be bringing into your business to get out of the cubicle when you want. No more wondering. In the space below calculate until your heart’s content and you know exactly what goals and financial needs you have to escape that cubicle.

Steph Gordon | www.stephgordon.com | © Steph Gordon 2013

Now that you’ve calculated everything I want you to use the worksheet below to write out your explicit and clear earning goals. Remember fabulous goals are SMART or Specific, Measurable, Attainable, Relevant and Time-Bound. An example of a SMART goal would be: I will sell one of my premium coaching packages every 30 days.

An example of a non-SMART goal would be: I will try my hardest to sell a product from my website.

Goal #1 ________________________________________________________________________ ________________________________________________________________________

Goal #2 ________________________________________________________________________ ________________________________________________________________________

Goal #3 ________________________________________________________________________ ________________________________________________________________________

Goal #4 ________________________________________________________________________ ________________________________________________________________________

Goal #5 ________________________________________________________________________ ________________________________________________________________________

Steph Gordon | www.stephgordon.com | © Steph Gordon 2013

Congratulations!! You have now done the work to create your personal Escape Number. This can be hard, emotional work and that’s why most people don’t take the time to do it. By working through this, thinking about your business, and getting really clear and deliberate about your future goals you are setting great things into motion. Post your goals where you can see them, read them and recommit to them daily (your bathroom mirror or office are both great options!) Now go have a glass of wine and think about how awesome your Escape will be.

xo sg

Steph Gordon | www.stephgordon.com | © Steph Gordon 2013