Would you ever try to drive a car while blindfolded? Of course not! That would be cray. Even if you’ve driven the same route a thousand times, you can’t navigate changing obstacles unless you have a clear view.
The same is true when it comes to formulating your strategy for a new business year. You need to see the full picture to make decisions that will save you time and hassle, and—most importantly—make your business more profitable. A year-in-review process will show you the way.
We’ve created an easy-to-use worksheet that will help you through this process.
Now, being the super savvy business woman you are, I’m sure you already track revenue and expenses. Those are important metrics, no doubt. But there are so many more data points you can use to set realistic expectations from one year to the next—if you stay on top of tracking them and understand how to use them. Let’s look at some.
DATE OF SERVICE
This one is more important than you might think. Tracking what month you start providing a service can reveal purchasing patterns and natural sales cycles that you can use to your advantage. Think of it in terms of headwinds and tailwinds. If you notice that it’s easier to secure new/more business in certain months (your tailwind), plan to ride that wave! If you notice time periods when you encounter more resistance (your headwind), you’ll be prepared to spend more resources to get the same results.
Also, if you see sudden spikes outside of those natural patterns, you can trace it back to an action you took during that time that may have created extra momentum. Did you speak publicly? Do a social media push? Find out what worked and do it again!
TIME TO COMPLETION
The last thing you want is to go months without finishing any projects—or getting paid. Tracking how long it takes to finish each type of project will help you balance the long-tail projects with those that pay faster. For example, maybe instead of doing four time-intensive VIP projects per quarter, you drop it to one and balance that with five one-on-ones and 10 group programs. That way, you’ll have cash in the bank and peace of mind in knowing you can cover your expenses until your next payload.
TYPE OF PROJECT
Hear this: more isn’t always better. It’s up to you to determine what’s best for your business—and your quality of life. Maybe it’s a high volume of projects. Maybe it’s fewer projects that focus on quality. Tracking project types helps you determine what’s most profitable AND what you most enjoy, so you can craft the business you want.
Other helpful data points include:
- Type of client, whether they’re new or a repeat, and whether you’d work with them again, all of which help you focus on those that have the highest total lifetime value
- Referral source, which shows you what’s working (e.g., networking) and what (or who) isn’t worth your time
- Total bid (what you charged—which should always be a project fee, not an hourly rate)—and number of hours spent, which will show you if you’re leaking precious time
- And others
In fact, you can customize the year-in-review worksheet for your specific business. If you’ve done it right, you can confidently make sound strategic decisions instead of stressing over what others say you SHOULD be doing.
Download your Revenue Review worksheet template and to find out how we can help you maximize your success.
