Perhaps that for the last several years your business has drifted along and stayed about the same. You want this year to be different. You are ready to do what it takes to grow your business. In this post I am going to give you a simple framework to develop and implement a growth plan for your business. It will allow you to see what you need to be doing everyday to reach the goals that you set so that your business will help you reach the dreams that you had when you started.
“If you fail to plan, you are planning to fail.” – Benjamin Franklin
- Set your revenue goal
The first thing that you need to do is to decide what you want to earn for the year. If you want to net $250,000 and your net income percentage is 50 percent, then your revenue goal for the year will be $500,000. If your revenue was only $100,000 last year that goal may be a bit of a reach for one year and may take a couple of more years. But you need to stretch yourself. The goal should not be impossible, but it should be one that will challenge you.
- Determine how many sells you need
If you are a law firm and your revenue goal is $500,000 and your average case value is $5,000, then you will need to have 100 cases in the next year. That is about two cases per week. If you convert one out of every three consultations to a client, then you will need to average six consultations a week. If only 75% of your appointments show up, then you will need to set eight appointments each week. You will need to figure out what kind of marketing activities that you need to do in order to get eight appointments scheduled each week.
- Determine staffing requirements
If you are planning to greatly increase your sales, you will likely need to increase your staff. If you are going to work 100 cases next year, you will need help in processing that volume of work. You will likely need administrative staff to allow you to focus on working cases and business development. Determine the average hours a case requires and that will help you determine your staffing needs.
- Monitor your progress
You need to monitor your progress throughout the year and see if you are on track to reach your goal. If your revenue is not what you want to be a few months in, there are a few things that you can do. One is to get more consultations scheduled. Another is to increase your conversion rate. If you can improve your conversion rate to 50%, so that one out of every two consultations hire you, that would dramatically improve your revenue. Another possibility is to get higher value cases. Also, measure your marketing ROI to make sure that your marketing efforts are effective.
I wish you the best this next year and I hope that you realize your goals. It will take a lot of hard work, but if you develop a good plan and then take the steps to implement it, you will be a step closer to realizing your dreams.
Contact me at firstname.lastname@example.org or 205-313-6490 to schedule a consultation to see how I may be able to help your business grow.