When you do your planning and goal setting in your business, do you really look at your numbers to determine where your revenue is coming from?
If you don’t, you are missing out of a very large part of your business planning.
When you are setting goals, one of the key things you need to assess is where the revenue will come from. In order to do this, you have to do a simple analysis of where it’s currently coming from.
By focusing on this, you will be better prepared to plan new services, products or programs.
It’s a simple thing to do, and it should be a part of your goal setting and business planning every time.
1. Make a list of all of your revenue generating pieces of your business. If you have multiple services, products and programs, break down each part so that you can identify where your revenue is coming in. If you are strictly a service based business owner, indicate each of your services as a separate revenue generator. Determine a rough price per service.
2. Next, look at how much revenue each service has brought into your business over the last year (or if you are just getting started, over the last few months).
3. Determine where the majority of your business revenue is coming from. If you have indicated your numbers properly, this should be very clear to you.
So how does it look? I bet you will find that most of your revenue is coming from one or two places.
You have probably heard of Pareto’s 80/20 Principle – in business terms, that is 80% of our revenue comes from 20% of our activities in our business. Look at your list … odds are that Pareto’s Principle probably applies.
If those one or two things are things you love to do, then you are all set. If they are not, you have to make a decision … changing your service offerings .
By doing this simple exercise you can identify the things that are making you money in your business.
Then do one of two things:
1) Plan to do more of those revenue generating activities (the easy solution!), or
2) Recognize that you are not making money doing what you love, and change what you are doing.
This can be a big decision if you decide to take a new path.
But that’s what planning and goal setting are all about! Do the research into your own business and your planning will take you much farther.
I’d love to hear your comments on this article – please share them below!