Reaching the million-dollar mark is a huge milestone for almost every firm owner. Whether you’ve achieved that feat or not, you’ve hopefully been setting goals along the way to help you get there (or whatever your next milestone is). There’s an extensive planning process involved in setting those goals; that way, operations can run smoothly and efficiently and you eliminate the stress of last-minute decisions that might not go off as planned.
Whether you’re getting ready to set new goals for 2023 or you’re preparing in a different quarter, here are some tips to help you figure out what your next revenue goal should be and how to get there.
Tip #1: Analyze Historical Data
How many new clients did you sign up last year? How many are still with the firm? What’s your historic retention rate? Before setting a number, it’s important to have such data to ensure you’re setting a realistic one. The rate of growth can also be based on a specific year-over-year comparison.
Tip #2: Set Monthly And Quarterly Targets
You likely have slow and busy seasons. You should set quarterly and monthly targets based on your turnover rate. Setting these shorter-term goals also gives you a chance to review, reset if necessary, and tweak them based on the results.
Tip #3: Review Resources
If you want to increase your monthly revenue from $200,000 to $1,000,000, your team might not be able to handle the sudden pressure. You’ll need to hire talent, which takes time, so make a recruitment plan when setting revenue goals. Scaling your marketing and sales efforts depends on how fast you can attract new talent.
Tip #4: Create Targets for Revenue-Generating Activities
Having broken down your annual target into monthly and quarterly targets, you can further break it down into activities and teams.
Imagine you have a content marketing strategy consisting of social media, blogs, and special resources, and an outbound marketing strategy that is based on lead scoring. Divide your revenue goal into individual goals and assign them to each activity and team.
For example, if your goal is to generate $100,000 per month, you can allocate $20,000 to content marketing strategies, $40,000 to outbound marketing, and $40,000 to follow-up and retention. (Payroll for in-house staff should be included in that).
Tip #5: Have Metrics for Scoring Leads
Leads aren’t created equal. To ensure that you’re allocating resources effectively, rank them based on how close they are to your target client profile. There are several factors that can be used to rank leads, such as budget, intent, position within an organization, page visits, and downloads. To stay on track with your revenue goals, it is important to set your lead scoring criteria early on. The better your leads, the easier it will be to convert them.
Conclusion
Although revenue goals are always going to be ambitious to some degree, there are definitely ways to get closer to them. As with all business processes, this will require some trial, error, and iteration. However, as your firm grows and your team becomes more experienced, your goals and accomplishments will likely increase.
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