Welcome to the next chapter of your business!
You have a new, fresh year ahead of you. What will you do with your business this year? Will you hire employees, offer more products or services, move into a new location, create a new website, get new business photos taken, rebrand your company, put on webinars or something else?
Whatever your plans may be, to have the greatest chance of fulfilling these plans and achieving your monetary goals, you need to first take stock of what you did last year in terms of your business activity and the outcome that produced, then determine what level of activities you need to do this year to reach your new goals.
This means detailing your process goals and your outcome goals, otherwise known as KPIs (Key performance indicators).
What’s the difference between process goals and KPIs?
KPIs are the measurements you will take that will tell you how successful your business is according to the items you have chosen to measure, in other words the outcome of the work you have done.
The most common KPIs are:
- Total revenue generated
- Revenue generated per service/product you offered
- Average revenue per sale
- New client acquisition
- Client renewals
These are essential KPIs to track, but, it’s not enough because it doesn’t tell you how you achieved those measurements, so in turn, it doesn’t tell you what you need to do to change the measurements by the next time interval you track. This is where process goals come in.
Process goals are targets you set for your business in terms of activities that you will complete to achieve those KPIs. In other words, they are the step-by-step actions that you will take and measure to achieve those KPIs.
For example, if you generated $100,000 in revenue last year (one of your KPIs) by having an average of 10 meetings with new prospects every week (process goals), to make $150,000 this year (KPI), you would need to have an average of 15 meetings with new prospects every week (process goal). There are a multitude of ways to get more meetings booked, but, for simplicity, let’s look at the example of generating more booked meetings via active prospecting.
Say you send out 30 connection requests with notes on LinkedIn to specific individuals based on your pre-determined target market. Depending on what you say in your note, 10-15 of the 30 (33.3-50%) will hopefully accept your invitations, but, likely over the course of time because not everyone spends a lot of time on LinkedIn. Some people only check LinkedIn on occasion, while some rarely, if ever, check it after creating a profile. Out of the 10-15 people who accepted, some will respond to your message and others won’t, they will just accept it. There are many reasons for this as well, which is a subject for another article. If they replied with a message, then you would respond accordingly, with the goal of booking a meeting with them. If they didn’t say anything in response to your note, then you need to send another message.
Out of the 10-15 who accept, hope to get 3-5 meetings booked. Of these 3-5 meetings, hope to get 1-4 clients from that.
If your ratios aren’t this high, you will need to change something to boost them up. Feel free to book a free business coaching consultation with me, so I can learn more about your business and talk about if a private coaching program or one of our memberships or other services could help you. Here’s the link to my calendar: https://calendly.com/gtapreneurs
This is a simplistic example of how you would track this using conservative numbers. I recommend using MS Excel or Google sheets.
*Keep in mind:
- The 10 people who accept your connection requests may not all accept in the first week
- Of those who accept and agree to a meeting, they may not all be available to meet that week
- Of the meetings you book, not all may show up to the meetings
- Of those who do attend the meetings and agree to become your client, the payment may not be made that week
However, if you do the same number of approaches every week, over the course of a few weeks, results will start to come in every week based on what you do in the new weeks and what you did in the previous weeks, so after 3-4 weeks time, the numbers will hopefully be at least as high in this example.
Then, break those goals down into monthly, weeks and days.