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Will You Add? - Setting Sales Targets - The Biggest Mistakes
If you've been following our medical billing series on oxygen billing and the electronic transmission of claims using NSF 3.01 specifications, you probably have been thinking, at least to this point, that this GX0 record isn't too bad. Well, that's all about to change as we start getting into the more complex fields of this record with this installment. We pick up our review of the GX0 record with field number 20, which is going to take a little bit of explaining in order to make it perfectly clear.GX0 field 20, position 146, is the inpatient/outpatient indicator. You have to wonder how the carriers come up with these descriptions because this o
A lot of management books push business owners to "shoot for the stars" when setting goals for their business. We disagree with this mindset when it leads the business owner to set goals that lack a pragmatic
Marketing is not over when the campaign is in full swing. You need to be available to make adjustments and answer questions from your target prospects. Although calendars can fill up, always have multiple spots available to help others, they will create a great business relationship in the long run. Sometimes customers need extra attention to get an unrelated project completed. Even though this may take time out of your day, find out more about what they want and how you can help them accomplish their goals. I am not saying to work for free but I am saying you can give free advice to help them along the way. If you are already doing a great job on a diffe
Eyes Wide Open works with owner-operators to help them set and achieve their sales targets. At this time of year a lot of businesses are revisiting their sales goals and target. We thought it would be timely to share the biggest mistakes we see businesses making when it comes to sales planning.
Mistake 1: Accelerated Growth Rates
In this context, your growth rate is the percentage change in your turnover each year. If you have a turnover of $100 000 in 2004 and then $120 000 in 2005, your growth rate is 20% / annum. One of the biggest mistakes business owners make is setting unrealistic growth rates for their business. For instance, consider the following data.
Historically the business has achieved:
o 2003 = $50 000
o 2004 = $70 000
o 2005 = $100 000
Then they start planning sales goals for the future:
o 2006 = $200 000
o 2007 = $550 000
o 2008 = $1 200 000
On the surface these figures may look reasonable, just a few $100 000 here and there. However, the growth rates tell a different story.
o 2004 = 40%
o 2005 = 42%
o 2006 = 100%
o 2007 = 175%
o 2008 = 118%
It's not so much that these growth rates are impossible but you must seriously question how a business is going to go from a growth rate of 42% to 100%+ in just 12 months. Most business owners setting ambitious sales goals don't think through this in enough detail and fail as a result. But shouldn't sales goals be ambitious?
A lot of management books push business owners to "shoot for the stars" when setting goals for their business. We disagree with this mindset when it leads the business owner to set goals that lack a pragmatic
Quite a few business out there can't survive without some type of advertising and/or brand recognition, so advertising your business is one of the most important aspects in running certain types of business. It's also one of the most frequently asked questions for "how to". This article is especially important for direct sales reps and those with company websites that need to make themselves "stand out" among hundreds of others that are selling similar products.So why should you advertise your business? For one or more of the following reasons:To Gain Exposure/Brand RecognitionThis would apply to those who may have a unique product or
Mistake 1: Accelerated Growth Rates
In this context, your growth rate is the percentage change in your turnover each year. If you have a turnover of $100 000 in 2004 and then $120 000 in 2005, your growth rate is 20% / annum. One of the biggest mistakes business owners make is setting unrealistic growth rates for their business. For instance, consider the following data.
Historically the business has achieved:
o 2003 = $50 000
o 2004 = $70 000
o 2005 = $100 000
Then they start planning sales goals for the future:
o 2006 = $200 000
o 2007 = $550 000
o 2008 = $1 200 000
On the surface these figures may look reasonable, just a few $100 000 here and there. However, the growth rates tell a different story.
o 2004 = 40%
o 2005 = 42%
o 2006 = 100%
o 2007 = 175%
o 2008 = 118%
It's not so much that these growth rates are impossible but you must seriously question how a business is going to go from a growth rate of 42% to 100%+ in just 12 months. Most business owners setting ambitious sales goals don't think through this in enough detail and fail as a result. But shouldn't sales goals be ambitious?
A lot of management books push business owners to "shoot for the stars" when setting goals for their business. We disagree with this mindset when it leads the business owner to set goals that lack a pragmatic
1. Barter If you have a business you should be bartering goods and services with other businesses. You should try to trade for something before you buy it. Barter deals usually require little or no money.2. Network Try networking your business with other businesses. You could trade leads or mailing lists. This will cut down on your marketing and advertising costs. You may also try bartering goods and services with them.3. Wholesale/Bulk You'll save money buying your business supplies in bulk quantities. You could get a membership at a wholesale warehouse or buy them through a mail order wholesaler. Buy the supplies yo
Historically the business has achieved:
o 2003 = $50 000
o 2004 = $70 000
o 2005 = $100 000
Then they start planning sales goals for the future:
o 2006 = $200 000
o 2007 = $550 000
o 2008 = $1 200 000
On the surface these figures may look reasonable, just a few $100 000 here and there. However, the growth rates tell a different story.
o 2004 = 40%
o 2005 = 42%
o 2006 = 100%
o 2007 = 175%
o 2008 = 118%
It's not so much that these growth rates are impossible but you must seriously question how a business is going to go from a growth rate of 42% to 100%+ in just 12 months. Most business owners setting ambitious sales goals don't think through this in enough detail and fail as a result. But shouldn't sales goals be ambitious?
A lot of management books push business owners to "shoot for the stars" when setting goals for their business. We disagree with this mindset when it leads the business owner to set goals that lack a pragmatic
Public relations for a winning sports team might sound easy but actually it is not that easy. The reason is because when you are winning everyone is trying to knock you down and as your players become more successful and popular, the media looks at them with more scrutiny and if something minor happens the media can blow it out of proportion.If your team is losing and one of your players gets a drunk driving ticket then no one seems to notice, but when your team has been winning all season even if an assistant coach gets a DUI it could become big news and hurt the image of the team.Some people say that all in news is good news. But when yo
o 2004 = 40%
o 2005 = 42%
o 2006 = 100%
o 2007 = 175%
o 2008 = 118%
It's not so much that these growth rates are impossible but you must seriously question how a business is going to go from a growth rate of 42% to 100%+ in just 12 months. Most business owners setting ambitious sales goals don't think through this in enough detail and fail as a result. But shouldn't sales goals be ambitious?
A lot of management books push business owners to "shoot for the stars" when setting goals for their business. We disagree with this mindset when it leads the business owner to set goals that lack a pragmatic
So many of us who have decided to do business online have no background in marketing or advertising. It can be so frustrating without any kind of guide.Here is a list of some textbook rules regarding marketing and advertising in general. These are important points that we should all keep in mind when promoting our offers:1. People don't like ads until they see something they want or need.2. Headlines should always illustrate the best, specific benefits of one's offer. Cryptic headlines might be fun, but they simply can't compare (in terms of results) to an honest headline that spells out your offer.3. Tell your prospects exactl
A lot of management books push business owners to "shoot for the stars" when setting goals for their business. We disagree with this mindset when it leads the business owner to set goals that lack a pragmatic foundation.
Substantial growth is possible but you have to carefully plan how it will happen. What's going to give you the leg up? More Sales staff? A merger with another business? A new contract? Better facilities or more warehouse space?
Be very careful about setting your business on a course for substantial growth. It will most likely put your people, cash flow and other resources under enormous pressure. Failure to achieve the goals can be devastating to the business, your credibility and the confidence of the people within the business.
From our experience, you are likely to be more effective setting more conservative, well considered goals. We call this "setting yourself up for a win". After all if you achieve them quicker than expected you can always set new ones! (Of course, you only set new ones after you've celebrated your win!). Taking this approach leads to business growth being a more enjoyable and rewarding journey for all involved.
What growth rates are reasonable?
The level of growth that is considered "reasonable" will vary depending on the age of the business, industry and how well it is run. New businesses can have amazing growth rates because they're working from a small base (e.g. Eyes Wide Open experienced 400% growth in its second year of business!). Some of the large, heavy industrial corporations in Australia rejoice when they get growth of 15%.
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