How to Reach Your Income Goals: Planning for 2023

How to Reach Your Income Goals: Planning for 2023

Many business owners have a problem with the way they plan their revenue and sales goals.

They say something to the effect of "I want to earn more than last year" or "I want a higher profit percentage than last year."

Great. Don't we all?

The problem is that there is no specificity. And how much more? What is the profit percentage?

Just like the old GPS analogy... if you don't know where you are, you can't get where you're going. You can't even get there if you don't know where "there" is.

When planning your revenue (and/or profit) goals, it's useful to have a few numbers handy. For the purposes of this article, we'll focus on revenue from the sale of your core product or service.

You'll want to gather the following information to plan your 2015 income:

* Your 2022 income from sales
* Your total number of paying clients for 2022
* Total number of programs, products, and services sold in 2022
* How much more you want to make in 2023 than in 2022.

Let's pretend the above answers are:

* Revenue from sales in 2022 $265,000
* 54 paying clients
* A total of 12 programs, products, and services sold in 2022
* $35,000 in additional income from sales you want to make in 2023.

Divide your total sales revenue by the total number of clients to get your average revenue per client.

Now you have two choices:

1. Decide that you want all of your 2023 income to come from new clients. In this case, you take the higher of the amount you want to make ($35,000 in our example) and divide it by the average 2022 revenue per client ($4900 in our example or the fourth pill from the top divided by #1 from the top). That's a total of 7 new clients in our example.

Before you shake your head and say “Yes new clients,” stop and think about what is involved from a lead generation, marketing, and time/energy cost perspective. Then... since not all of these clients will start with you in January, add a few more of them.

The longer it takes to bring them in, the more you'll need to make up the gap for how much more income you want to generate. That means our "7" new clients could be 10, 15, or more.

While we're stopping the practice here, the truth is that the number of "new" users you need depends on your conversion rate for opt-ins from strangers and opt-ins/paying clients.

If you talk to 50 people for every 1 new client, you need a lead generation plan that brings in 350 people to get 7 new clients or 750 people for 15 new clients.

2. Offer more items (or more of the same item if appropriate) to existing customers. What if, instead of spending $4900 with you like in 2022, 5 of your current clients spend $9900 with you in 2023? 5 clients x $5000 in new sales revenue = $25,000 extra. Now instead of 7 new clients, you only need 2 -3 to generate an additional $10,000 for your desired $35,000 in new revenue.

The reality is that your business needs (and will have) a mix of both existing and new clients and customers. This requires you to create not only a lead generation plan to bring in new clients, but also an Extreme Client Care(tm) or relationship marketing plan to retain existing clients. Find out what is most wanted and needed and how to present it. them

Once you know your numbers, it's time to put together an action plan to achieve them. Your action plan allows you to plan your quarters, weeks, months, and days so that you can take the necessary steps to achieve your goals.

As an inspirational and in-demand mentor, trainer, and speaker, Sandy has helped hundreds of small business owners around the world build sustainable businesses that make a positive impact.

Sandy is also the founder of Escalator Marketing™, which builds client engagement and delights fans through design. Sandy's Done 4 You services, programs, products, and marketing™ offerings and creating lifelong clients through Extreme Client Care™ have made her an in-demand and innovative expert. http://www.TheMartiniWay.com