At this year’s 4u2grow Annual Conference, we dove deep into what it takes to grow your business – including the reason why you shouldn’t be afraid to make money. Attendees discovered that it’s not enough to have a dream, you need to turn that dream into a reality. You do that by creating actionable goals that are S.M.A.R.T – specific, measurable, attainable, relevant and time-binding.

“I want to grow my business” isn’t a goal – it’s a dream. “I want more customers” and “I want to make more money” aren’t goals either. Finish out the year strong in 2019 and successfully discover how to set business goals and achieve them by asking yourself these three important questions:

How many clients do I need?

Desired Total Revenue Gained / Average Revenue Per Client

Start by setting real goals. Then, think about how many clients you need to meet those goals. Is it two clients each month? Is it two clients each week? You need to identify how many clients you need to make your dreams into a reality. Figure out this number by dividing your desired total revenue gained by the average revenue per client. If your desired gained revenue is $10,000 per month and you gain about $5,000 on average for each new client, you need two customers to make your dreams into a reality. This number may change as your business grows and your goals adjust, but each time you set a new goal you need to revisit this question.

How many leads do I need?

Total Number of New Clients Needed / Close Ratio

Figuring out the number of leads you need is simpler than it first appears – just look at your close ratio (the number of sales divided by the number of leads). If you close 20 sales for every 100 leads, your close ratio is 20%. That number fluctuates based on the quality of your leads, but it gives you an idea of where to start. Now that you know your close ratio, divide the total number of clients needed by that number. If you want to sign two new customers per month, you’re going to need a minimum of ten qualified leads.

How much are my leads worth?

Annual Revenue / Number of Active Clients = Average Revenue Per Client

Average Revenue Per Client x Number of Years Average Retain = Average Lifetime Revenue Per Client

Average Lifetime Revenue Per Client x Net Profit Percentage = Average Lifetime Profit Per Client

Average Lifetime Profit Per Client / Sales Close Ratio = Value of a Lead

Discover the true cost of your leads in four easy steps:

• Take your annual revenue and divide it by the number of active clients you currently have – that gets you your average revenue per client.
• Now, take that number and multiply it by the number of years you keep customers (on average), that equals your average lifetime revenue per client.
• If you take the average lifetime revenue per client and multiply that by your net profit percentage, you’ll get your average lifetime profit per client.
• For the final step, take the number you got for the average lifetime profit per client and divide it by your close ratio.

That’s the value of your lead! It takes a little bit to get there but understanding the value of your leads is essential to meeting – and exceeding – your goals.

Now that you know the three most important numbers for your business – plan ahead. Start implementing strategies that help you reach your S.M.A.R.T goals. Think about what you can do now to give your business that final boost in 2018, and then prepare for a fruitful 2019.

Don’t settle for daydreaming – contact us today to learn how to set business goals and achieve them with our marketing strategies that help you turn your dreams into a reality.

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Last month, we learned a lot of key takeaways from the third 4u2grow Annual Conference. If you were there, you got to hear from some of the best vendors in the industry – including Datto and Webroot. If you weren’t, you missed out on empowering presentations and panels aimed at growing your technology business. We’d love to see you attend next year.

As we push forward through the fourth quarter, you’re likely looking for new ways to increase sales for the 2018 year and propel your business into 2019. To help you do that, we’ve consolidated four tips on how to increase sales from your existing partners.

Expand Your Partners’ Home Networks

Nowadays, your partners work from everywhere – the office, their favorite coffee shop and the comfort of their home. But, they don’t always have the same privileges that they do in the office. If they use a personal computer to access the VPN from home, they risk compromising the entire system. By offering to include their home PCs in their managed services plan, you give them an opportunity to use pre-tax dollars to invest in network security. That adds 10 percent or more to your managed services invoice – increasing your profits and keeping their network protected.

Implement a Referral Plan

Word of mouth is the most impactful form of advertising – why not capitalize on it? By creating a referral system, you’ll gain new leads and solidify their loyalty. Create an incentive for why your existing partners should refer their friends to your services – it could be a gift card, discounts on services or a technology gift. Find what entices your partners (it could be as simple as asking them) and reward them for referring your solutions.

Identify Upgrade and Cross-Sell Opportunities

Your techs work closely with your partners – often more than you do – and can quickly identify their problem areas. But, how often do they report these problems to you or your partners? Give your technology experts a reason to speak up. By offering bonuses or other incentives for upgrades and cross-sells, you can ensure that your techs will pinpoint issues and suggest the best solutions to your partners – improving your revenue and reinforcing your partners’ trust in your business and experts.

Offer the Services Your Partners Need

Let’s face it – your competitors probably provide the same core solutions that you do. Sure, your business stands out because of A, B and C, but when it comes down to it, your partners have options. Don’t give your partners the chance to go to anyone else for their solutions. Make sure that your products or services work with their needs. If your solutions only work with PCs, invest in making them work with Macs. Don’t leave holes in your availability, because those holes allow for your partners to slip through and head straight to your competition.

The Gartner Group projects that 80 percent of future revenue will come from just 20 percent of your existing clients. That makes your current partners your most valuable business asset. As you look for that final boost for 2018, make sure you’re looking in the right place – internally.

Don’t let opportunities to generate more revenue pass you by. Contact us today to discover how else you can increase sales from existing partners and see how our referral emails and custom campaigns make it easier.

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