- January 28, 2015
- Posted by: Kurlan & Associates, Inc.
- Categories: Monthly Tips, Strategy
Never Have a Bad Month Again
That’s right. Never miss your goal, target or number again. Today I’ll show you how.
You’ll need some of your crucial ratios like your monthly goal, the length of your sell cycle, your closing percentage and your average sale (or account). Here’s what you need to do:
Let’s say you have a six month sell cycle. Today is June 11 so you’d be working on December 11 business. You can’t do a thing about June!
Let’s say you have the following crucial ratios:
Monthly Goal – $100,000
Closing Percentage – 25%
Average Sale (or account) – $20,000
That means that in order to close $100,000 in December, you must make sure that you do the following in June (December less the length of your sell cycle):
Place $400,000 (amount required to close $100,000 at 25% closing percentage) worth of new opportunities into the first stage of your pipeline;
Place 20 (number of opportunities required to close 5 at 25% closing) new opportunities into the first stage of your pipeline;
Now Make it Better! If you committed to become just 10% more effective, does that get you 10% more sales? 10% more commissions? No. It’s better than that.
Using the previous example, at 10% better it means:
2 more opportunities per month;
an average sale of $22,000;
a closing percentage of 27.5%
a sell cycle of 5 months.
And that means:
22 opportunities worth $484,000;
at a 27.5% closing percentage;
$133,100 per month;
$396,000 increase (33%)
What must you do to never miss another goal? Make sure you are disciplined enough to put the appropriate number and value of new opportunities required into your pipeline each month.
What must you do to increase sales by at least 33%? Get 10% better at everything you do. How? Review Baseline Selling for all of the strategies and tactics. Don’t have it yet? Order by clicking on Baseline Selling to the right.