Educating is Closing...Relationships are Revenue!
Time to Start Planning for 2010
This is a post from late 2008 but I think you will agree that it is at least equally relevant today as it was back then.
PLANNING FOR 2009
As I write this on the eve of the 2008 Presidential Election, I must consider the possibility that the economy will take time to recover. Nobody suddenly wakes up fat one morning. And our economy WILL recover, but it didn't fall to poor health overnight and it will not recover in a day.
Some of our customers may go out of business. Some will change their business drastically. That's the brutal facts. These are things outside of our control. We can plan for them, anticipate them, consider them; but we cannot change them. What we can control is how well we position ourselves for tough times.
Let's take a quick look at we can do, right now, to start our planning process.
1. How much do you need to grow your business next year? Exactly how much? What's the percentage... but what is the exact dollar amount?
2. What is our normal annual attrition rate? Take the percentage of past years and multiply it to your current annual sales rate.
3. How much "extra damage" do you expect for 2009? This number will be unique based on the industry you are in. Sell only to the US Auto Industry? Better make this a big number. Sell services to banks and financial institutions? Another big number.
4. Annual Sales Rate - attrition number - "extra damage" = ? This is your projected base headed into 2009.
5. What's in your pipeline? How many dollars? Don't know? If not, you are in trouble, my friend.
6. Compare the number from 4 above plus your pipeline - against your target for 2009 from #1 above.
Do you have significantly more in your pipeline than you need? How much of your pipeline are you confident you will close early in the year? The more you have in excess in your pipeline, the more comfort you have. If you have multiples of what you need to make the 09 number, breath a sigh of relief. If not, it's time to hit the pavement in search of opportunities and problems you are uniquely qualified to solve.
PLANNING FOR 2009
As I write this on the eve of the 2008 Presidential Election, I must consider the possibility that the economy will take time to recover. Nobody suddenly wakes up fat one morning. And our economy WILL recover, but it didn't fall to poor health overnight and it will not recover in a day.
Some of our customers may go out of business. Some will change their business drastically. That's the brutal facts. These are things outside of our control. We can plan for them, anticipate them, consider them; but we cannot change them. What we can control is how well we position ourselves for tough times.
Let's take a quick look at we can do, right now, to start our planning process.
1. How much do you need to grow your business next year? Exactly how much? What's the percentage... but what is the exact dollar amount?
2. What is our normal annual attrition rate? Take the percentage of past years and multiply it to your current annual sales rate.
3. How much "extra damage" do you expect for 2009? This number will be unique based on the industry you are in. Sell only to the US Auto Industry? Better make this a big number. Sell services to banks and financial institutions? Another big number.
4. Annual Sales Rate - attrition number - "extra damage" = ? This is your projected base headed into 2009.
5. What's in your pipeline? How many dollars? Don't know? If not, you are in trouble, my friend.
6. Compare the number from 4 above plus your pipeline - against your target for 2009 from #1 above.
Do you have significantly more in your pipeline than you need? How much of your pipeline are you confident you will close early in the year? The more you have in excess in your pipeline, the more comfort you have. If you have multiples of what you need to make the 09 number, breath a sigh of relief. If not, it's time to hit the pavement in search of opportunities and problems you are uniquely qualified to solve.
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