Setting goals for your business is pretty easy. That is, until you actually work out what you need to achieve them.
If you are anything like me, I am always positive and absolutely overly ambitious with my goals. From what I can get done in an hour or a day to what I will achieve with my business. One thing I do to keep myself honest with my (online) business goals is reverse engineer them focusing on the numbers I need to achieve the outcomes. Let me show you how I do it.
- Start with a list of the following:
a. Where the lead/sale source will come from (you should have listed these as part of your goal setting activity)
b. The estimated audience size for each of these lead/sale sources
c. What you believe the click-through rate will be for the source
d. The number of leads from this source – which is just the click-through rate (%) multiplied by the estimated audience size.
e. The cost of the click if you are paying for it
f. Then you can work out the total cost (number of leads x cost per click/lead).
g. From here, determine what you think the conversion rate will be so that you can work out the number of sales and your revenue figure.
h. You can see if it matches with your goal figure.
i. If it doesn’t, then you can work out if you are targeting enough people, having to pay too much for sales and whether you need to add some sources or rethink your current approach.
- If you don’t know the conversion rates and cost per click amounts based on existing sales/ activity, then you will need to estimate.
- These figures will give you benchmarks to track against so you can see a) if you are tracking to make your goals b) needing to make adjustments as you go along to make your goals.
- Below is a table what it should look like, and some examples. I’ve taken this from my 2018 Planner, which you can read more about here.
I’ve built this template into the planner as part of the planning section in my Planner. I created this planner because the templates I use all the time for both my own business and for my clients. I got sick of having papers and key information in lots of different places so I built it all into one planner that you can carry it with you - from planning, to goals, daily diary and action plan. All in one neat package!