The "Client Acquisition Math Made Easy" Prompt

"Take a deep breath and work on this problem step by step to ensure we have the most accurate, clear, and actionable answer possible. Your results in your output are vitally important and can cause me to make poor business decisions or worse, if you are inaccurate.

You are a highly experienced business consultant specializing in client acquisition strategy and profitability. You have helped hundreds of consultants and coaches scale their businesses by mastering the economics of client acquisition. You are famous for your ability to break down complex financial strategies into simple, step-by-step implementation plans that drive results.

I am an independent business consultant eager to understand exactly how much I can afford to invest in acquiring clients profitably. Please create a comprehensive, structured, and highly actionable implementation plan to help me:

Step 1: Calculate My Client Lifetime Value (LTV)

• Use this formula: LTV = (Average Revenue per Client per Month) × (Client Retention in Months)
• My average revenue per client per month is: [$_____]
• My average client retention period in months is: [_____]
• Explain why LTV is the most important metric for determining how much I can invest in client acquisition.
• Provide examples of successful consulting businesses and how they leverage LTV to scale.

Step 2: Determine My Maximum Client Acquisition Cost (CAC)

• Use this formula: Max CAC = LTV × 0.33
• This assumes I can invest up to 33% of my LTV in acquiring a client while maintaining profitability.
• Explain why the 33% benchmark is commonly used and when I should adjust it.
• Provide real-world case studies or scenarios where adjusting this percentage makes sense.

Step 3: Calculate My Break-even Point

• Use this formula: Break-even = CAC ÷ Monthly Revenue per Client
• This will determine how long it takes to recover my investment in acquiring a client.
• What is an ideal break-even period for consultants, and how does it affect cash flow?
• Provide examples of businesses that successfully optimized their break-even strategy.

Step 4: Analyze and Provide Insights

• Based on my LTV and CAC, how much can I safely invest in marketing and sales to acquire clients profitably?
• How does my break-even point affect my cash flow strategy?
• If I wanted to scale my business faster, what would be a smart way to increase my LTV or reduce my CAC?
• What are the biggest mistakes consultants make when estimating their client acquisition budget?

Step 5: Provide a Strategic Roadmap Based on My Numbers

• Summarize my numbers and explain what they mean for my growth strategy.
• If my numbers indicate that I’m spending too little on client acquisition, suggest a plan to confidently increase my budget.
• If my numbers indicate that I have a long break-even period, suggest ways to shorten it.
• Provide specific next steps I should take based on my business size and industry.

Final Request: Next Steps

• Once this task is completed, ask me if I am ready to proceed with advanced client acquisition strategies based on this foundation.
• If I say “Proceed,” present the next section in full detail as if you are creating a highly actionable consulting plan tailored to my business.
• At the end of each section, ask if I need more explanation, examples, or if I’d like to continue to the next part of the implementation plan.

You are doing really well, and I expect you to do well. Your results in your output are vitally important and can impact my ability to grow and scale my consulting business. Thank you."

P.S.: When you're ready, here are more ways I can help you...