Firstly, Happy New Year! There’s nothing like the Christmas and New Year break to get us thinking about the future and what it holds for us. But don’t just accept what you are given, in just 6 easy steps you can be on your way to creating the future you want.
Step 1. Where do you want to be in 5 years from now? If you have some thoughts, go on, write them down. You are much more likely to achieve them if they are written down.
OK so you have written at least one idea down. So how are you going to get there?
Step 2. You can start by thinking about breaking down your 5 year goal into what you need to achieve by year 2 in order to get there, and then break that down into what you need to achieve by the end of next year. For example, in 5 years time you want to achieve a profit of £300,000, but at the moment you are only achieving £50,0000. That would suggest that you need to achieve around £110,000 profit by year 2 and £75,000 profit by the end of next year.
5 years = £300,000 profit
2 years = £110,000 profit
1 year = £75,000 profit
Now = £50,000 profit
Step 3. Project your Profit & Loss over the next year. How much revenue do you need to make in order to cover your costs, so that you will end up with £100,000 profit? Don’t forget that you might need to incur additional costs to cover the increased revenue, for example you might need to hire or outsource more staff to cope with the increase in demand. So now you should have an idea of the revenue (or sales) you need to achieve, and the costs that you need to stay within in order to achieve your profit. These will give you your sales targets and budget for expenditure.
Sales target £150,000
Expenditure budget £75,000
Step 4. You now know your sales targets, so how many leads or enquiries do you need to achieve your sales? You can work this out based on your sales conversion rate over the past year… how many leads or enquiries did you generate last year to achieve the sales you received? Of course if you undergo further sales training you could improve on your past conversion rate.
Leads generated 300
Sales conversion rate 50%
Average value per sale £1,000
Step 5. You now know how many leads you need to generate. How are you going to generate these leads? What marketing activity has worked best for you in the recent past? Do more of this and don’t waste your money on the ones that have not worked. Be clear about your service or product, who your target market is and how you can benefit them.
Step 6. Remember that times are changing and you need to respond appropriately. Constantly test and measure to see how what is working, and what is not, and adjust your strategies accordingly. Also try improving your efficiencies within the business to increase your capacity and make sure you are not paying too much for your service delivery.
Don’t forget that business isn’t meant to be easy. If it was then everyone would be thriving. And if you need a hand… you know where to find it
Enjoy creating a more successful year by working smarter, not harder.