Feast or famine.
The revenue rollercoaster.
No matter what you call it, few things feel harder than not being able to predict how much money your business is going to make every month.
Today, I want to talk about how you can create more predictability, in terms of the revenue that your business brings in.
Because if there’s one thing I hear all the time, is how tired people are of being on the revenue roller coaster. Inconsistent income. Feast or famine.
Whatever you call it, let’s be honest: it sucks.
And it can be a real problem when you’re trying to figure out how to grow your business—how much you can spend on team, for example. It becomes really tough when you can’t predict how much you’ll bring in next month.
So in terms of how we tackle this, it’s part of what we do in our business every week and it’s also what we do with our Accelerator clients: we have a weekly scorecard.
But this scorecard isn’t about tracking everything and it’s not about tracking revenue, because revenue is the result of other actions we take.
And so we’ve got a method, it’s something I picked up from a bunch of places, from books like the 12 week year, various coaches and consultants we’ve worked with, some of this is from my friend Angela Lauria, from Tara Gentile …
Here’s how it goes.
1. Start by working backwards
How many leads will you need to get, for you not just to stay in business, but to grow?
This means knowing your conversion rate. If it’s sales calls, are you converting 25%? 50%? 80%?
And then, how many clients do you want. 10 clients? 50% conversion? You’ll need 20 sales calls.
2. Make a plan for what you’ll do if you aren’t getting them.
Tara Gentile calls this doing a pre-mortem.
- What will you do if you aren’t at 25% of your calls in week 1?
- 50% after week 2?
- What are you going to do if you aren’t at 75% of the number after week 3?
Make a plan so that when things go off the rails, you can get them back on track.
3. Put your numbers into a scorecard.
Keep this simple; just a few numbers. For us, it’s number of leads, conversion rate, number of new clients.
So if you need 20 sales calls in a month, you need to be getting on 5 calls per week.
Track this week by week, so that every week you know if you’re on track. And if you’re not, you can implement the plans from step #2.
4. Lastly, assign it out.
Will you be doing the sales calls and lead gen?
If so, what do you need to remove from your plate to make it happen?
Or should someone else on your team be figuring out what the targets should be, figuring out how to reach them, making the contingency plans, and so on?
No matter who it ends up being, it needs to be assigned to someone as their responsibility.
So whether it’s you doing it, or someone else … those are the 4 things we’ve found to be super helpful:
- We need to know our leading indicators
- We need to know what you’ll do if you’re trending under where you should be
- We need a system to monitor and adjust our progress
- And we need to make sure that you, your team — that you have the capacity to make it all happen.
So which of these four things would help your business most right now? I’d love to hear from you.
And if you’re having a hard time figuring out what that would look like for you, feel free to reach out.
Send a message on Facebook, and I’ll see if and how I can help …
And we’ll talk again very, very soon.