Thoughtful Thursdays – Time to do the math
It is amazing how quickly time seems to pass. We are now setting up to close out the calendar year and looking into the crystal ball for signs for achieving 2013 forecasts.
By the way, if you have not yet made your forecasts for next year, I would set aside some to get it done.
Let’s assume that you have set your objectives. You know how much growth is expected and may even have a good idea of where it is going to come from. That is a very good position to be in and one that many would envy.
Truth is that many struggle to manage their time efficiently and make the numbers. Something that has always helped me is to take the time and do the simple math. Once the task is broken down into easy to manage pieces, it can be surprisingly easy.
Begin with the dollar amount of incremental growth you are expected to achieve and also know how it is expressed as a percent of the previous years revenues.
Think about where the growth is coming from:
- Price increases at existing customers
- Additional business at existing customers
- New customers
Don’t forget to subtract what you know is going to be lost.
Doing the math will provide you with a good idea of any gaps you need to fill in the next year. If new customers are needed, your historic close rate will give you a starting point about how many prospects you need to add to your list.
Spreading growth expectations over all your customers can also make your job easier. Don’t look to one place for all the growth to occur. If only 25% of your customers buy more in the new year, I suggest you will be well on your way. If they happen to be in the top 20% of your base, even better.
So do the math and make the job simpler with a well developed and executed sales plan.
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