If you're feeling overwhelmed and uncertain when it comes to understanding your business numbers, constantly second-guessing your financial decisions and lacking confidence in setting realistic targets, then you are not alone! Many small business owners struggle with these challenges, often resulting in missed opportunities and poor financial performance. Instead of achieving the desired result of informed financial decisions and setting realistic targets, they may be experiencing financial stress, making uninformed decisions, and missing out on growth potential. But fear not, there are practical steps and strategies that can empower small business owners to conquer their financial management challenges and achieve success.
Table of contents of this episode about getting clear on your business numbers
Converting prospects to customers
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Breaking Down Your Goals
If you have a definite idea of where you want your business to be financially, breaking it down into achievable targets is a brilliant idea.
This calculated approach allows you just to keep track of your progress but also maintain manageable workloads.
To bring additional earnings in, you need a clear idea of the exact amount of customers needed or items that need selling per month.
In this episode, Wendy Harris drives home the importance of this calculated method in achieving goals.
She advises adopting this practical approach and views it as a clear-cut way to meet specific targets.
Whether you're selling a product and need to figure out the number of units required per month or delivering a service and working out time and capacity, Wendy recommends this method and believes it's a great way to keep track of your goals.
Finding Your Targets
Identifying your target audience can be quite a task, but it’s one that reaps rewards.
By focusing on the right people at the right time, your efforts are more likely to convert into success.
Building a list of prospects that align with your business and understanding their needs and patterns will streamline your operations.
Wendy shares her idea of building a prospects list, starting with a sample of a hundred and aiming to create a connection with at least five.
She believes that businesses should invest time in researching their audience, understanding their needs, and focusing their efforts on the ones most likely to convert.
In her opinion, creating and nurturing relationships with your potential customer base yields dividends in the long run.
Converting Prospects To Customers
Transitioning a prospect into a customer isn't as straightforward as it seems. There is time, effort, and skill required. Business owners have to step out of their comfort zones to hone in new skills, whether its morale boosting for cold calling or establishing connections over LinkedIn. Harris acknowledges this challenge head-on in her conversation. She poses different methodologies for conversion, whether cold calling, LinkedIn connections, or others, and suggests that businesses should be open to testing the waters. What might work for one, might not work for another. She believes in the adaptability of businesses and encourages proprietors to be prepared to pick up new skills if necessary.
Timestamped summary of this episode:
00:00:00 – Knowing Your Numbers,
Wendy emphasizes the importance of knowing your numbers in business. Understanding customer costs, acquisition expenses, and profits is crucial for setting realistic goals and expectations.
00:03:27 – Calculating Financial Goals,
Wendy prompts listeners to determine their financial goals and the time required to achieve them. By breaking down income targets and assessing available time, individuals can create a realistic plan for success.
00:07:41 – Identifying Target Audience,
Wendy discusses the significance of identifying the right audience for your business. She advises using data and research to build a list of potential customers who align with your expertise and passion.
00:10:23 – Testing Sales Methods,
Wendy encourages testing different sales approaches, such as cold calling and LinkedIn, to see which method yields better results. Experimentation and measuring outcomes can lead to more effective customer acquisition strategies.
00:11:38 – Customer Value Proposition,
Wendy previews the next episode, where she will discuss the customer value proposition. Understanding why customers would buy from you is essential for crafting a compelling message and attracting new clients.
From the transcript
“So what is the first question I ask of any new client? Do you know your numbers? Do you? Do you know what a customer costs? Do you know what it costs to get a customer? Do you know what you make from a customer? What's the end cost? How much new business do you want or need? How much capacity have you got? If you know how much money you need to make and how much it will cost you, you'll also need to know how much time you're going to need to dedicate to that..”
What you'll learn from this episode
You'll learn how to…
- Dissect the importance of understanding your business numbers for an unbeatable formula for success.
- Unmask the previously intimidating process of calculating customer acquisition costs and profits to steer your enterprise in the right direction.
- Develop strategic acumen by setting financial and time-related targets that truly work.
- Unearth groundbreaking methods of researching and targeting potential customers for effective vocation.
- Evaluate various customer conversion tactics, and learn the art of testing and measuring effectiveness.
Wendy’s Links
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