In his latest blog, Sales Masters Guild Mentor, Olivier Carion, shares what he believes are some of the most crucial factor to business growth.
Let me share with you what I believe to be absolutely essential to the growth of your business and therefore to your income. It applies to any type of business.
I sat down with a new client recently who told me he had not quite been able to earn the kind of income that he wanted, in spite of having been in business for many years and regularly working more than 50 hours a week.
Anyone hearing our conversation would have quickly realised two things about this man: (1) he is incredibly experienced at what he does, and (2) he has a clear desire to give exceptional value to his customers. However, he is undervaluing his time and the service he gives to his clients.
Is this you too? Here are 4 simple questions for you at this stage:
- Do you work more than 40 hours a week?
- Do you long for a better personal income from your business?
- Does “earning more and working less” seem like an elusive dream?
- Have you ever studied how to make more money out of your business?
Three Things the Super Successful Business People Do
To avoid just “getting by”, let’s look at what the super successful business people do consistently on a regular basis. The list of their habits is fairly long and naturally varies from person to person. However, there are clear common denominators. Here are three things that many of them typically do:
- They track what they do on a daily, weekly, monthly basis
- They constantly test new marketing strategies
- They measure their results across a multitude of KPI’s
I would suggest that these three habits are well worth integrating into your own entrepreneurial routine. What do you think? Here’s something to look at…
Key Information for Your Dashboard
Looking at the performance of your business, here are 3 simple formulas that generally work very well in helping business owners take an entrepreneurial view of where they are with their business. Perhaps you will agree that they ought to be part of your dashboard:
L x CR = C
Leads x Conversion Rate = Customers
C x AS = R
Customers x Average Sale = Revenue
R – C = P
Revenue – Cost = Profit
In plain terms:
- Your Marketing Expenditure divided by the number of Leads generated = your “Lead Cost”
- The number of Opportunities divided by the number of Sales made gives you both your “Conversion Rate” and your “Deal Cost”
- The Average Sale minus your Average Costs gives you both your Profit and Average Customer Value
Looking at it in terms of earnings from your business, let’s reverse engineer the level of income you want. It goes like this:
- If you want to make £8,333 per month (£100k per annum)
- And your average sale is worth £250 net profit
- You need 33 clients per month
- If you convert 50% of your opportunities into business, you need 66 leads per month
- If each lead costs you £10 to generate, your marketing budget needs to be £660 per month
If this all seems a little complicated, I promise you it’s something that you can learn quite quickly if you take some time out to focus on this. I can certainly help you get a full handle on this in just a few hours either 1-2-1 or in one of the workshops that I regularly put on.
In conclusion, I would love to have your feedback and any questions you may have. From what I’ve shared, are there any thoughts that immediately come to mind? Did the above resonate with you? What did it make you think about your business?
In addition, I have a free exercise document that will give you to map out for you exactly how to work out all of the numbers we’ve ran through, if you would like a copy please get in touch and I’ll send it to you.
Olivier’s Entrepreneurs Training covers much more than the pints he’s made in this post, so if you’re looking for growth in your business, it may be worth talking to him or booking onto the days course. If you’d like to find out more about the training before booking, please contact Olivier directly though his Mentor profile page.
Oliver Carion is a Sales Masters Guild Personal Business Mentor.
With a real passion for the psychology of communication and the architecture that underpins accelerated growth, you’ll quickly realise why Olivier is the man who will help accelerate your business to a whole new level.