Building a business, working hard, and retiring early – it’s the ultimate dream, right? But let’s be real: hitting those big profit goals feels tougher than ever these days. Whether you’re striving to give your family a comfortable life or aiming for a multi-million milestone, running a business isn’t for the faint of heart.
Even in the best economic times, success doesn’t just fall into your lap. One of the biggest shifts for many business owners is recognising that they are not just delivering a product or service – they are leading a marketing and sales business that happens to specialise in their field. Without consistent marketing and a clear revenue plan, many owners find themselves in a feast-or-famine cycle.
A solid plan for revenue and profit is your compass, guiding you through the challenges of business ownership.
So, how do you get there? It all boils down to understanding the connection between three critical factors:
- Revenue
- Profit
- Tactics
If you’ve been feeling lost or overwhelmed when it comes to profit planning, don’t worry – you’re not alone. This blog is here to help you take control and move forward with clarity and confidence.
Where Are You in Your Revenue & Profit Planning?
Take a moment to reflect honestly on where your business stands. On a scale of 1 to 5, how would you rate your revenue and profit planning?
LEVEL 1
- No month-by-month budget to forecast revenue and expenses.
- Decisions are based on bank account balances or rough sales estimates.
LEVEL 5
- A detailed monthly budget forecasts revenue needed to achieve profit goals and owner drawings.
- Decisions are guided by weekly budget vs. actual reports.
Which level feels most like you right now? Whether you’re closer to Level 1, 3, or 5, there’s no embarrassment in identifying where you are. What matters most is being honest with yourself so you can take the right steps to improve.
The Key to Moving Up the Scale
Here’s the truth: no one is going to transform your business for you. But with the right tools and guidance, you can do it yourself – faster and more effectively than you might think.
As Biz Stone, co-founder of Twitter put it: “Even the simplest tools can empower people to do great things.”
That’s exactly why we use a linked Revenue & Profit Budget and Tactical Marketing Plan within one spreadsheet – a powerful, straightforward tool to help you:
- Reverse-engineer the revenue you need
- Plan the volume of leads you need to convert into paying customers
- Calculate the number of transactions and customers needed to hit your profit goals
This tool simplifies complex questions, making it easy to plan for success. Click here to download your copy and start making real progress today!
Delivering the Plan Through Effective Tactics
Once you have a solid understanding of the numbers you need to be bringing in to reach your profit goals it’s time to create a Tactical Marketing Plan. Because if you don’t now put a plan in place to deliver your revenue & profit numbers, it’s all just built on hot air.
The Tactical Marketing Plan provides guidance as to what actionable tactics you can use right now to start hitting those lead generation, conversion, and margin targets from your Revenue & Profit Plan.
To climb toward Level 5, you need a strong tactical plan. Start by laying out specific strategies to drive revenue and achieve your profit goals. Here are some ideas:
- Develop a referral programme to encourage word-of-mouth
- Offer incentives to encourage repeat business
- Invest in targeted advertising
- Build strategic partnerships or networking
- Leverage social media more effectively
- Create lead magnets to attract new prospects
- Build and nurture an email marketing list
Pro tip: Choose around ten tactics and aim for each to contribute about 10% of your total target. Balance the cost and reward of each strategy, mixing time- and money-intensive approaches. For example, combine “hunting” strategies like pay-per-click ads with “farming” strategies like email marketing to maximise results.
Stay Flexible, Stay Focused
The beauty of the Revenue & Profit Budget and Tactical Marketing Plan is that they’re a live tool – you can and should update it regularly. At first, your numbers might feel like educated guesses. That’s okay! As you collect and analyse real-time data, adjust your plan to reflect what’s actually working.
The possibilities for your business are endless. With the right plan and a willingness to adapt, you’ll be amazed at what you can achieve.
Ready to See What’s Possible?
If you’re ready to take control of your revenue and profit goals but aren’t sure where to start, I’ve got your back. You can book a complimentary 15-minute call here. Let’s uncover the possibilities and create a clear path to your success