Based on the answers you have provided in the questionnaire, this Report will provide you with your
Turnover and Activity goals for the coming year.
Note: The term ‘Activity’ means the steps required
to achieve your turnover (revenue) goal, this includes the number of Sales and ‘Opportunities’ (people
interested in your product or service) you need to obtain each month.
Note: Throughout the Report we use the term
‘Opportunities’, whenever this term is used it relates to opportunities where a sale can be made, such
as a person who walks in to a store, or go onto a website, and become a potential sale.
The first step in developing a Business Plan is to establish your financial goals for the business, the
next step is the ‘how to’, which is how you are going to achieve those goals.
To complete the ‘how to’ part of your plan, you need to know the number of ‘Opportunities’ required to
make the required number of Sales to achieve your Turnover (revenue) targets.
In this report the ‘how to’ is referred to as your ‘Action Plan’.
We have divided the report into 3 sections as follows;
Next Year’s Goal (or Breakeven) is based on the following information:
Note: Annual Expenses include an annual inflation adjustment of
Explanation: Months of selling activity. Many business operations do not
actively sell every month of the year, for example some may close over the Christmas (holiday) period,
or a salesperson may take annual leave, and as a result, selling activity may only take place over 11
months (or less) of the year.
Note: Monthly Turnover is for 11 months of the
Note: Activity (sales, and ‘Opportunities’) numbers are for
11 selling months of the year.
Total Gross Profit required to achieve
Financial Goal Including Franchise Fees … $343,280
Note: Annual Expenses are the expenses to run your business, it does not
include any Cost of Sale items, which are attributed to the direct cost of selling a product or service,
not the running of a business.
To Achieve Next Year’s Goal:
Congratulations, you now have the annual and monthly Turnover required to achieve
your goals for the coming year. The next step is to discover the activity required to achieve
your Turnover goals.
The Following ‘Activity’ is required to achieve your Turnover Goal:
As mentioned earlier, Activity are the business functions from which income (revenue) is the result, and
to develop your ‘Action Plan’ you need to know the number of ‘Opportunities’ (people interested in your
product or service) requried to obtain the required number of sales to achieve your Turnover targets.
The Activity numbers are based on the following:
You have a Sales Conversion Rate from ‘Opportunities’ of 65%,
and you have an Average Sale Value of $27,000.00
The Activity required is provided below:
You require the following (average) number of sales per
To achieve your monthly sales goal (individual sales) you require:
You now have the information required to develop a plan to achieve your Turnover targets for the coming
year. Following is a summary of your Goals.
Business Income Goals
Owner Income Goals
Monthly Activity Goals – 11 (selling) months
You now have a list of Goals for the new year ahead, the next Section will hopefully provide you with
some ideas from which you can develop your ‘Action Plan’ to achieve your goals.
Profit Accelerator can help you develop and implement an ‘Action Plan’ to help you achieve Next Year’s
Goal, plus we can provide a practical and easy monitoring system to help you measure your progress.
Your Financial Goals are dependent on making the required number of sales, however, in order to achieve
your sales goals you must obtain ‘Opportunities’ to make a sale.
On this basis, you may wish to evaluate your Marketing program and make changes if required (see
‘Marketing – ‘Opportunities’ required from which to make additional Sales’ below).
What if you could obtain more sales from the same number of ‘Opportunities’ ? That is increase Sales
(from ‘Opportunities’) Conversion Rate, in other words your Sales Success Ratio.
By increasing your Sales Success Ratio you will require less ‘Opportunities’ to achieve your sales goal.
Consider the following.
Increasing Sales Success Ratios
Improving your Selling Process is a key component in making it easier to achieve your ‘Activity Goals’
which is converting more ‘Opportunities’ into sales.
Many business owners are not aware that ‘selling’ is like any other business function, it can be done
well, or not so well. We are all aware a business which does not have ‘systems’ will not do as well as a
business who has ‘systems’, the same applies to ‘selling’, yet very few business’s do not have a system
I developed a system of selling which increased my sales success rates from winning just 3 from 10, to
winning 8 from 10 ‘Opportunities’ submitted when I first developed the system. My clients who follow the
system have reported huge increases in sales without any extra effort.
Below I have shown the impact of making just 1 extra sale from 10 ‘Opportunities’.
|Sales From 10 ‘Opportunities’
|By making just 1 extra sale from 10 ‘Opportunities’ will have the following result
|33% Icrease in Revenue
|25% Icrease in Revenue
|20% Icrease in Revenue
|17% Icrease in Revenue
|14% Icrease in Revenue
|13% Icrease in Revenue
I suggest you evaluate the way in which you ‘sell’ to a prospective customer, what is your process? Do
you have one? And, does your method engender the ‘Know, Like and Trust Factor’ with your prospective
customers? Or, is your system just a case of meet, greet and provide a quote, or maybe a show and tell
process? If it is, then the opportunity to significantly increase sales, the value of the sale, and sell
more per sale, cannot be over stated.
Increasing your Sales Success Ratios can also impact on the following;
Quotes/Proposals required from which to achieve the desired number of sales.
There are retail operations that provide quotes to potential customers, and if this applies to your
business then this may apply to you, but first, I will explain the difference between a Quote and a
Quote – A quote is a simple document which outlines the job, product or service to be
provided and provides a Price.
Proposal – Is a selling document which provides details such as the features and
benefits of a product or service to be provided (plus more) and it contains the quote.
Depending on the industry you are in will depend on which of the two you should use in your selling
process. Some industries use both, for example, a business who sell kitchen renovations would use a
Proposal to ‘sell’ the kitchen, as it would be of significant value, but if a person simply wishes to
purchase a benchtop, and then a quote would suffice.
We can help you to evaluate which is the best solution for you and why we recommend our solution.
Marketing – ‘Opportunities’ required from which to make additional Sales.
Earlier I mentioned in order to make Sales you must have ‘Opportunities’, and this is where Marketing
comes into play.
Marketing is what brings people to you, and Selling is what converts them to a customer, this applies to
any business including retail. Acquisition of ‘Opportunities’ is marketing, and you will see from the
‘Activity’ goals you have a monthly ‘Opportunities’ target. If you require additional ‘Opportunities’,
the question becomes ‘How do I obtain extra ‘Opportunities’?’.
We suggest you evaluate your Marketing, ask yourself – Where do my ‘Opportunities’ come from? ‘How many
Marketing Pillars do I have to acquire ‘Opportunities’? How do I know which marketing mediums provide
the majority of my ‘Opportunities’? Knowing where your ‘Opportunities’ came from is covered in the
heading titled Monitoring.
Note: Marketing Pillars, these are the number of ways in which you
market your business, e.g. Website, Google Ad Words, Social Media are examples of Marketing Pillars.
Monitoring your business, including KPI’s (Key Performance Indicators) is a key to success. If you don’t
know where you are at, then how can you plan on where you want to go?
A number of business owners look at their Profit & Loss (P & L) statements provided by their accountancy
programs, provided the P & L statement is correctly presented, it will give you good historical data as
to the financial progress of the business. P & L’s should be an important part of monitoring the
progress of your business, but it should not be the only measuring tool.
Measuring KPI’s is critical to business success, they tell you what is happening in real-time, and
provide a warning of potential issues, both in the present and in the future. The question is ‘How do we
measure our business KPI’s?’
The measurement of KPI’s can be achieved with CRM Systems, but unfortunately for many SME business
owners, the process is not so easy to follow, and as a result KPI’s are not monitored.
Profit Accelerator has simple KPI Monitoring Systems to help to keep a closer eye on business
performance, which in turn will lead to greater business success, you can see what is happening in
real-time as to the acquisition of ‘Opportunities’, Sales Activity and more. If this is of interest, let
us know and we will be happy to discuss KPI Monitoring with you.
Where To From Here
Hopefully I have provided some insights as to what to look for in order to help you achieve your goals,
the next question is, ‘Where to from here?’
You now have the first part of a Business Plan, I suggest the next step is to develop an ‘Action Plan’.
The plan will provide the steps to follow to implement the changes required to achieve your Financial
If you would like help to develop an ‘Action Plan’, please contact us for a free discussion of
possibility, and we will be in touch.
Thank you for using our BGA-Calculator, and wish you all the best for the future.
Profit Accelerator Limited
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