Included in every session will be one or more Skill Set exercises to help you engage with the Big Ideas presented. While this is optional, don’t cheat yourself and move through the Roadmap without applying the concepts you’re learning! Challenge yourself to complete every Skill Set activity and see what changes in your business as a result. We promise good things will happen.
Do you know how many leads and sales you need in a year to meet your revenue goals? Follow the directions below to calculate the number of leads and sales you need in a year to meet your goal. You will need the following numbers to start.
- Total revenue from previous year
- Number of projects in previous year
- Closing ratio in previous year – the percentage of estimates that you closed
- Average job size in previous year – Take the total revenue and divide it by your total number of projects
- Revenue goal for your next year – this is a great time to start setting your next year’s goals! You’ll want to make sure this is ambitious, but realistic. Look at your growth year over year and use that to launch from. Push yourself, but set realistic expectations. Falling short of a goal leads to a sense of futility and low team morale!
- Number of projects for next year needed to reach revenue goal – this number is reached by taking your total revenue goal for your next year (step 5) and dividing it by your average job size from the previous year (step 4).
- Estimates and sales opportunities needed in the next year to meet your revenue goals – take the number of projects needed in the next year (step 6) and divide it by your closing ratio (step 3).
Follow the example below to better understand the process.
- 2019 sales = $350k revenue
- Number of projects in 2019 = 100 projects
- 2019 closing ratio = 33%
- 2019 average project size = $3,500 ($350k divided by 100)
- 2020 sales goal = $500k
- Number of projects in 2020 needed to reach goal = 143 ($500k divided by $3,500)
- Sales opportunities needed = 429 (based on 33% closing– 143 x .33)
You should now understand how to calculate the total number of estimates and projects you need in the next year to reach your revenue goals. Feel free to adjust some of the numbers and see what you come up with! Raising the average size of your jobs will lead to a need for less estimates and projects, for example.
Now that you have some clear goals for the next year, remember to share with your team and get feedback. This is another set of goals to help motivate your team to better understand how to reach new heights together.