Prioritize Outcomes Over Activities: Free Cash Flow Is The Goal For Seven-Figure Solopreneurs
Free cash flow (FCF) is a business’s most important financial success metric. Free cash flow is the cash left over after a company pays for its capital expenditures (CapEx) and operating expenses (OpEx). FCF is simple to calculate and hard to fake. That said, FCF is an output goal. You need to know what levers to pull to increase FCF. Those levers drive your input goals which in turn shape our output goal.
When operating a business of one, you want simple input goals with experiments that you can run in hours or days — not weeks or months.
Move Fast — Iteration speed is part of your superpower as a solopreneur. That speed, paired with your talent stack, is your competitive advantage. So I schedule tangible activities on my calendar, search for levers, and double down where I find causality. I find the most success when I spend that time building systems — not trying to squeeze in an incremental unit of work.
Hunt — Great places to hunt for levers are CAC Payback Period, Churn Rate, Contribution Margin, Customer Acquisition Cost (CAC), Lifetime Value (LTV), etc. This works for products and services.
As a solopreneur, you can predictably generate $1M in revenue at 80% margins and generate ~$500K in post-tax revenue if you hunt for the right levers.
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