Start by going through your revenue from 2014 using your P&L, including your net profitability (what you brought in after you paid yourself). Check and see if you are happy. If you want to make more you have to change some things!
Seriously, if you feel funny about giving any of your financials, it might be because you are not effectively tracking those numbers. These help you create budgets, job costs, etc. It is the heartbeat of your business.
How Much Do You Want To Grow Next Year?
Write that number down. Don’t underestimate how much you should grow. If you are thinking 10%, then up that to 20%. Just go for it! Start by figuring out how many estimates you did last year, closed deals, average cost of goods sold (average ticket sale).
On thing that is often overlooked is are the lost opportunities in your business. How many leads did you get and which ones turned into closed business? There are times when you will want to turn down business (like if the job was too small) but there are also times when you missed a sale that you did want, and you need to look at how you can avoid missing those in the future!
You also need to make sure you are costing out your jobs correctly based on the work AND on how far you have to travel to do the jobs.
Make sure to look at a SWOT analysis for your contracting business. SWOT stands for Strengths, Weaknesses, Opportunities and Threats.
What are you missing out on marketing-wise. Are you following up, could you do a newsletter, are you sending 10X10s. Now would be a great time to redefine who your perfect client is, you can tell by going through each job and seeing what types of customers matched your most profitable work.
Just by knowing who your “best” customers are you can move the dollar value of each of your jobs up!
Looking Forward and Back
It is important that you review your last year and see if you hit your goals, but it is just as important that you forecast goals for the coming year. Reviewing the past so the future will be better. It is hard work and a pain in the neck because you are working hard and then look up to notice that
Planning Ahead for 2015
The neat thing about planning ahead for your business and revenue is that is that watching it grow is not addition, it is multiplication!
One way you can increase your business is to have more customers like the ones that you are already serving, focusing on getting referrals and grown business through the people you already serve. This is all about making your farming more effective. Both Dave and Justin are looking to increase their business next year by focusing on referrals rather than constantly trying to drum up brand new business.
Creating Your Vision
Another thing to look at is the vision you have for your company. Not quite a mission statement, more like an overarching theme of how you will work and what you are focusing on.
There was a company that Dave worked with who had two trucks and wanted to be a 65 truck business in 5 years. Problem was, they had no plan for how to get there.
Make sure to revisit your customer, pricing and referral partner pipeline.
Last but not least, take a look at your mission and vision to make sure they match. For example, you can’t have a mission to spend more time with your kids AND to work twice as much. Each part of the vision for your life has to be congruent with the amount of time that you have for each piece. Have you made a business that fits your lifestyle, or is your business your lifestyle?
- 11 Secrets To Getting Into Lucrative High-End Homes and Communities Book with Bonus Workbook
- Download Vision mission goals worksheet
A bonus for this post on 5 ways to profit here is a link to a fantastic app from Action Coach
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