It is unbelievable that we are already half way through the year. Time is flying by whether you’re having fun or not AND whether you’re making money or not. Which side are you on? Have you put pen to paper to run your numbers yet for the year to see how your business is measuring up? It is time to do a business wellness check up!
Quoting Peter Drucker, one of the greatest management thinkers of all times, "If you can't measure it, you can't improve it." Read that again and maybe even underline it!! This is a huge concept that all business owners must understand to effectively manage their businesses. If you are unable to measure the different components of your business, there is no way to know how to improve upon it later. For example, if you’re trying to lose weight, but you never step on a scale, you will not know if what you’re doing is working or how to make it better. You’ll need to know the starting weight and the weight changes along the way. You need numbers to properly assess if your weight loss methods are working. If those numbers aren’t changing for the better, than you know some adjustments need to be made. This is just like your business.
NUMBERS – NUMBERS - NUMBERS! It is incredibly important that you track everything in your business. You want to have your annual income goal, broken down into approximately how many average transaction commissions will get you there if you get one side of the deal. After you have that transaction amount, divide that by twelve to see how many you’ll need a month to make your goal a reality.
$200K annual goal ÷ $9K average one side = 22.2 deals ÷ 12 months = 1.85 deals per month.
So let’s just say 2 deals per month will hit your goals plus give you a little cushion; this is extremely attainable.
If you happen to have above average price points or get both sides of the deal, than this is just a bonus, but you don’t want to account for that. Always do your breakdowns based on the general scenarios you deal with, not pipe dreams.
Once you know the amount of deals you need per month, you can start to figure out the marketing plan needed to get you there. Assess the online lead generation you’re doing, the phone calls being made, the mail going out the door, the appointments being set and all the other systems you have in place. What is the cost for each of those and what return are you seeing?
If you know that a roll of 100 stamps costs $49 and you mail 100 letters that get you a handful of leads which will ultimately convert to 1 strong deal, than you know the return you get for that cost. If the average one sided deal yields you $9K, than $49 spent to earn that commission is something you’ll want to do over and over again.
What are you spending in online lead generation and the long term nurture that it takes to convert those leads? Again, breakdown the math to give your business a proper checkup. You must measure everything so you know what kind of adjustments may be required and where to make them.
If you haven’t done this wellness checkup yet, do it now. It is crucial that you have a clear picture of where you want to be and what it will take to get you there. There is still the second half of the year left and luckily you work in an industry that produces the highest commissions. With a few minor tweaks you can instantly be back in the game to meet your goals.