Last week I was on the phone with a new Opulence member.
I asked him what was ONE thing that would move the needle in his business right now.
No surprises there. As a business owner only 2 years into his journey, money was tight.
“Great,” I replied. “Let’s workshop this a bit right now. How many leads do you get a week?”
“I’m not really sure… we run largely on referrals, so it could be anywhere between 1 and 5.”
“Ok. What’s your conversion rate on those leads? How many turns into sales?”
… crickets. He simply didn’t track any of this. He didn’t know his numbers.
Instead, leads simply came in, and some of them turned into sales, and nobody was really looking at the details of what, when, how, and why.
It’s a common story. Many business owners grow their business organically at first.
But when your business turns the corner from ‘paid hobby’ to a business that employs people (even if it’s just yourself) and supports your livelihood… you MUST start tracking your numbers.
I’m not just talking about how many sales you make.
I’m talking about
Sales calls made
Average $ per sale
And whatever other numbers are crucial for keeping a thumb on your business’ thermostat.
Because what can be measured, can be improved.
But if you don’t actually know where you stand, how can you know what’s working, and what’s not?
How can you see past the blind spots to the truth about your business’ health?
We all have blind spots.
If you aren’t tracking a range of KPIs in your business, I’m betting you’re carrying some
MASSIVE misconceptions about where you truly stand.
For instance, the Opulence member who thought ‘more leads’ would shift the needle in his business was actually dead wrong.
A few weeks later after he’d been tracking his numbers, and we resumed our conversation, we saw things clearly for the first time…
Turns out that more leads would’ve in fact crippled his business.
a.) He didn’t have any systems in place to convert them into clients, and instead wasted hours designing bespoke programs and quotes for each lead. More leads = more hours wasted reinventing the wheel.
b.) He didn’t have the resources to deliver on more than 2 extra projects a month. So even if he did get more leads, and close more clients, he wouldn’t have been able to keep up with the workload.
Which, down the track, would’ve meant pissed off customers, refunds, and perhaps a dinted reputation that dried up work (and cash flow) for months.
In fact, ‘more leads’ is rarely the answer to your business problems.
Leads cost advertising money. They’re a front-end expense.
Instead of chasing more leads, how about improving the back end processes you already have?
Improve your show up rate on sales calls.
Improve your sales closure rate.
Improve your project turnover speed.
Improve your client retention rate.
Create upsells that boost average $ per sale.
All those things (and more) add much more value to your business than just throwing more leads into the machine.
Especially if the machine is kinda leaky 😉
But first things first - you need to start measuring those things to begin improving them.
With that in mind, do you need help working out a system to measure the KPIs that matter in your business?
Comment below and let me know. I’ve got a couple of worksheets that can help clarify things for you.