Carolyn’s book is a must read for every small business owner in Australia!
7 Numbers You Can't Ignore!
- Expenses - What are the total costs to run my business including MY salary? (Don't make the mistake of not paying yourself firs, like many business owners do. A good solid flow projection is essential here.)
- Revenue - What total revenue do I need to generate? What is my average revenue per sale and therefore how many sales do I need to make? (Again, part of your cash flow projection.)
- Profit - What profit do I want to make in total and per sale?
- Conversion - What is my conversion rate from enquiry to sale? (It may only be 10% and I suggest being very conservative in estimating this number,)
- Leads - To achieve these sales, how many leads do I need to generate per week, per month, per year?
- Tactics - How many (and what kind) of different marketing tactics such as online advertising, PR or networking do I need to generate these leads? (I recommend a multi-pronged approach of at least four, preferably six marketing tactics.)
- Investment - How much am I prepared to invest in marketing in order to achieve this? (I recommend around 5-10% of your estimated turnover.)
Let's see the numbers at work. Imagine you need to generate $500,000 in revenue this year and your average revenue per client is $5,000. That means you need to get 100 sales. However, your conversion rate is only 20% due to the high cost of your offering. Therefore you need to generate 500 new leads per year or 42 new leads per month or 10 per week! Now when you bring it back to those sorts of numbers you can start to plan your multi-pronged marketing program in order to generate these leads. Marketing really is a numbers game!
Have you set your numbers for 2012? If you need help setting the numbers, building a marketing plan and getting it implemented, then the Kick Start Marketing Plan may be just the ticket! KICK START MARKETING PLAN
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