Your probably thinking that I’m crazy and any other time I probably would be, but follow along… let’s go! It sounds outrageous, but if you had told me that I had to grow my business by 40% this coming year, I would say you’re crazy, so let’s start looking at all the things that I would have to do in order to make that happen.
I’d take a look at last year’s revenue and review last year’s marketing budget to see which areas I would need to beef up. I’d think about all the other things that would have to come into play, how much more marketing was needed and how I could find the money to spend. It would pretty much drive me crazy, but there really is a simple way to do it.
When I saw this simple way it actually blew me away! A few weeks ago, in Episode 54 I interviewed Brian Kaskavalciyan and we talked about a seminar he was doing with my friend, the roofer Arry. Well I got the opportunity to go to the seminar and went through the Seven Key Profit Indicators that are in every business and there was one in particular that just caught my eye. When we went through it, it just really just blew my mind.
There are lots of things that “you know you know” and then there are things you “think you know”, especially the contracting business, but when I looked at this Profit Indicator which we will call Asset Management, it opened my eyes to a super easy change I could make…and it just made so much crazy sense to me.
I was doing it in my own very limited way, but once the we went through the numbers and went through the reasoning behind it, I just knew that this was the easiest way for me to grow my revenue in one area by 40%.
Let me explain…from now on we are going do our marketing and lead generation the same way we are doing now. But what we do after that initial round of marketing is going to change dramatically!
Lets keep the numbers simple, just talking on a small-scale you have 100 people you’ve sold to. Now, you have created leads to get these sales for these hundred people you sold. Let’s say your average sale $1000 so you have done $100,000 in business for those sold leads. Most people in the contracting business close 30% on a generated lead.
So what happens to the 70% who, for whatever reason, did not say yes or no? Most of the time we forget about them and just write them off because they are not ready to buy now.
When I sat down and listened to what Brian had to say, it just opened up a whole new avenue for revenue. What happens to those 70% of people who didn’t buy immediately? If you close 30% of leads generated, that means you paid for 330 leads to close 100…so what happened to the other 230 leads that dropped off? Do we just about them?
I know that I normally just send out one follow up, but when I heard the statistics on how many people actually buy within the next year out of those 70% I was astonished. 65% of that 70% actually buy within the first year so why not get some of them to buy from you?
Here’s the numbers… you’ve got 230 people that haven’t said yes or no. And even though they haven’t bought from you, 65% of them WILL buy from someone within the year. This means that 161 MORE of those leads will purchase within one year. What if we set the goal to only get 25% of these 161 people to buy from you?
That’s 40 new sales, at an average sale of 1,000 dollars for $40,000 dollars of increased revenue. You have just increased your business by 40%… not by adding a new marketing campaign, not by putting in new ads in a magazine TV or radio or whatever, simply by continuing to follow up with leads you have already paid to generate!
All you have to do is either created a follow up system or add to the follow up system you already have.
What I’ve done is taken what I already do and I’ve added extra items to my follow-up system to keep in contact with those prospects. Here what I’ve implemented:
- After my original estimates, I send them a thank you card for just giving me the opportunity to give them an estimate (you would be surprised at how many people will do business with you just because of that first thank you note because they feel like you want to do business with them)
- Next I send out another card within seven days
- Then another card 10 days after that
- Then they go on my newsletter mailing
- Because I don’t mind talking on the phone, I would throw in a phone call to just check on them
- Within four months I’ll send them another card to see if they have moved on their project
I know you couldn’t be at the seminar, but you can get Brian’s book on Amazon, the information in his book WILL transform your business only if you implement it.