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Do You Know Your Numbers?



By Allan Ferguson

There is a tremendous business benefit in the power of knowing your numbers and in turn giving your business its best chance to succeed.

I’ve always had the belief if you know your numbers well, you will be surprised at the power this brings.

It doesn’t need to be too elaborate or time-consuming but it does need a process and will significantly help you keep track of your business’s goals.

For example, one of the first areas I started tracking was leads coming into my business.

From this I then tracked related areas such as the leads source, where does the lead comes from, and then calculating what that lead actually cost.

Lead tracking is probably one of the most basic numbers a contractor can know, especially in terms of what’s making the phone ring and what’s it costing them.

From knowing these numbers alone, I was then able to regularly use that knowledge to actually compare different lead sources that lowered my costs and in turn raised my profits.

The actual entering of the numbers isn’t that hard too!

I think the hardest part of the process is actually getting the numbers on a daily basis.

If this process is new to you then I recommend keeping it simple and aiming for five basic numbers.

Within these five numbers, something like total sales is a good one to build around, and you’ll be surprised what you can learn from keeping track of this.

Ten years ago I did the number-tracking exercise to work out what my costs were on a daily basis, and this was extremely powerful.

I looked at the calendar for September and for my business there were 22 work days in that month.

So, because you now know what your total costs are, you can work that out to a break-even point per day and then calculate what sales you need, gross sale or total sales you need on a daily basis.

I’ve always kept track of daily scores and because I do that, I can be more flexible with my budget and goal-setting.

You might decide to increase your advertising spend, or send out some direct mails when the phone’s not ringing.

When you know your daily targets and your daily numbers, you’ve got the power to actually turn a month around and be a proactive business.

And this is just one example of an area where you can track your numbers.

Knowing your daily numbers is one of the best ways to keep track of your business goals and I recommend to any business to get started today.

This is the power of knowing your numbers.

Allan Ferguson is the CEO of Service Professionals Australia.

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