How Many Regular Enquiries Does Your Business Need To Turn Your Dreams And Goals Into Reality?
Success is not just going to happen to you.You need to plan for it.
It’s solely your responsibility to chart a deliberate course to the higher levels of achievement in sales revenues and profits you desire — (including the increased personal rewards that your business will deliver over the coming months and years).
To achieve consistent, lasting success within just a few years — not over a lifetime — you must believe in, and commit to being the dynamic driving force of your enterprise. You must create a powerful growth strategy that will, month-by-month, achieve your goals.
Reverse Engineer Your Success
The process begins by “reverse-engineering” backwards from your ultimate revenue goal (set to be achieved say, three or five years from now).
Here’s how to do it.
You’ll need to have certain figures available for your business. Most of these are not difficult to calculate, but if you don’t have exact figures to hand, don’t give up on this process. Simply make your best estimates, erring slightly on the conservative side.
Step 1, Write down exactly what your goals for turnover and growth are over each of the next 3 to 5 years (see table below)
Step 2, Work out how much of your annual sales turnover typically comes from existing customers, and therefore how much growth will have to come from new customers
Step 3, Write down your average annual customer sales value (how much each customer will spend with you over the next 12 months)
Step 4, Work out the figure for the amount of new sales divided by the average customer sales value. This tells you how many new customers you need to reach your sales targets for each year
Step 5, Keep working backwards to find out how many sales appointments you need to generate. Do this by dividing the number of new customers by your conversion % of prospects to clients. (25% in the example below)
Step 6, Now work out how many enquiries you need to generate each year. Do this by dividing the number of sales appointments by your % conversion of enquiries to appointments.
Reverse Engineer back to the numbers for the end of each year:
|YEAR||Year 1||Year 2||Year 3||Year 4|
(From Existing Customers)
(From Existing Customers)
|AVERAGE CUSTOMER VALUE||8K|
(New sales/Av customer value)
|No. of APPOINTMENTS 40
(Conversion % appointments:
clients, say 25% in this example)
|No. of ENQUIRIES
(Conversion % leads: appointments,
say 25% in this example)
When you have worked out the numbers of enquiries, appointments, and new customers needed by the end of Year 1, break down each of these figures by month, and then by each week.
This gives you a set of concrete targets to hit, week by week and month by month, and now you will know the scale of the task for your marketing.
Don’t be satisfied with fractional increases in sales. Think BIG and think DIMENSIONALLY. Look for multiple times growth for your business over the coming years. Work out a number of different scenarios based on 20%, 50%, 100% and 200% annual growth.
Whilst there will always be large variations in actual spend according to product or service offered, this will at least give you the right targets to aim for, and allow you to monitor progress on a month-by-month basis, so you don’t get into the second half of the year before you recognise a gap exists.
Produce a simple spreadsheet with estimates and assumptions stated. Refer to this sheet on a weekly and monthly basis to keep you focused and on-track.
Remember, your life’s goals and ambitions are achieved day-by-day, month-by-month and year-by-year.
Good luck, and get started!