Sure, we all know that setting goals is an important part of management, yada, yada, yada. But do you do it?
Here’s a few key questions to get you thinking this week – but don’t just think about this. Take Action.
Let’s start with the opening question that I might ask you as your coach:
What’s the number 1 priority for your business this month?
Chances are that you have a short list of TO DO items or maybe a giant frog to eat that immediately trips off your tongue. But the answer probably ought to relate to revenue earning activities – especially at the moment.
In business as in life we are either growing or dying. That’s the reality, you can’t fight it. It applies to everything in the material world – just look out of the window. If you could speed up time, you’d see that is the situation with all things – even skyscrapers and iron bars. I get a reminder of this every time I look at the 17th Century thatched cottage I bought 10 years ago. It needs constant attention due to (nowadays) poor choices of materials that don’t stand up to the rigours of the seasons.
So back to the question. What’s a great goal for you to focus your efforts on in June? How about Lead Generation? Do you have a written goal for generating new leads each day? If not, you should spend 15 minutes now thinking what it should be, writing it down and determining how you are going to achieve it. Make sure you have a written goal for leads every day and that all of your team knows what it is and how to contribute to its achievement.
So what makes for a good goal? Well, it ought to be Specific, Measurable, Achievable, Realistic and Time bound (SMART). It should also be informed by your most important metrics from the 5 Ways to grow your business.
Specific – 2 or more leads each week. Measurable – clarify what constitutes a lead. Achievable – it has one foot in reality (although you can double or 10x if you put the supporting actions in place). Realistic – must be supported by the necessary investment of time, expertise and money. Time bound – set targets for each day, week and month so you have leading KPIs rather than lagging.
Do you know how many leads you need to get a new customer?
Let’s say you need 2 new customers this month. If you know that your measured conversion rate is 1 in 10 or 10% then you need to generate 20 good leads and convert them at your normal rate in order to generate 2 new customers this month.
My recommendation would be that you have multiple strategies for lead generation and conversion to avoid putting all of your eggs in too few baskets. We normally get clients to pick 5 from the 87 or so lead generation strategies we have and then get them to Test and Measure to continuously improve performance until the have a self-funding and repeatable marketing machine that they can turn up and up to grow their business once they have the supporting SYSTEMs in place. (SYSTEMs in our world stands for Saving Yourself Time Energy and Money)
What is Your Customer Acquisition Cost?
Yes, it’s a reality but a little understood business “secret” that you BUY customers. Money is a flow. You have to “speculate” to accumulate. The key is to minimise the speculation and do things on purpose – running rapid, measured experiments to determine what works so you can back the winners and cut the losers. If you don’t test and measure your decisions are subjective rather than objective. Your CAC should be less than the lifetime value of your customer – so you ought to know that number too.
So, a recommended action for today is: determine a clear goal for how many leads you want in June, make a plan to get you there and test and measure to keep on track. All that’s missing then is the accountability to make sure you do it. And that’s where your coach comes in…
Have a great June.