Phil Risher walks through finding your lead gap using a calculator tool. If you need $100K in revenue and your average deal is $5K, you know exactly how many leads to chase.
In this video, we're going to look at how to grow your business in the coming year and what strategy you can implement and where you should begin. So a lot of times when we meet with clients, they want to grow their business, but they're not really sure where to start. And where it all starts is leads. You need to have a certain amount of leads so that you can convert a certain amount of those leads into jobs and then you convert a certain amount of those jobs into actual sales. So what we did was we actually created this lead goal calculator and I'll put a link to it down below. But again, you could just recreate this or come up with this on your own. And basically what you do is you start with your revenue goals. So if you're, if you're planning, you could say, okay, our revenue goal is to do 1.2 million or whatever the number is. Let's say you want to do 5 million, that's 500,000. 5 million. Then you put in your average transaction value. So let's say your average tax is $500. It's going to tell you how many annual jobs you need to do in order to reach your goal. So at $500 a job, you to reach 5 million, you're going to have to do 10,000 jobs. And then per month you're going to need to do 833 jobs. So this will help you figure out, okay, well, maybe if I need to increase my average transaction value, maybe I need to increase my prices by 10%. So I'm going to change that to 550 and then I can do that many jobs with the amount of crews that I have, then you can work down to the next level. So our average leads to close ratio is 59%. Now what we found is that the average is 42% for across the board for all businesses. Some businesses that are typically above like 20 to 30 technicians are booking around 59%. 55, 60, 65%. We found this through a service titan. They released the information on what their entire people that use their platform actually book at. So we know that 42% is average. 59% is for bigger companies aver and for small companies, they're actually around 24% conversion. So I would say if you don't know your number, I would start around 42%. 40%, something like that. And so what this will tell you is if you need to book 758jobs and your average lead to close ratio is 42%, then how many leads Do I need in order to book that many jobs? So annually you need this many leads and per month you need this many leads. So what you can do, let's say that you're a little bit smaller than 5 million and you're around 1.2 million is your target. Then you know that each month you need to have 433 leads come into your business in order to reach your goal. So you could do this by getting right, retargeting people in your database, bringing them back into the funnel. And then there's a bunch of different strategies that we talk about, right? Running ads, doing social media, doing direct mail, prospecting, calls, business to business, referrals coming in, so creating so visibility for new customers and then also tweaking your conversions on your website. So maybe people are coming to your website or coming to your platform, but they're not actually turning into a sale. So can we increase your conversion rate and then also can we retarget people to bring them back into your funnel? Old prospects, people that have never converted, bringing them back into your funnel. So once you get that outlined for your annual goals, this is a really cool part, is that you can actually take your current numbers to. So if you're currently planning, you can literally plug in what your final revenue number was. Let's say you're at a million and you want to go to 1.2 and your average transaction value is 550. So similar, then you know that you probably booked this many jobs per month and let's say that you converted this the same. So in order to reach a million dollars, you probably were in this realm of around360 leads per month. So what this is going to tell you is that if you want to go from 1 million to 1.2 million in revenue, and then you need to increase your monthly leads by 72 leads, it comes down to how many leads that you have because you could always increase your conversion rate and that's going to increase the amount of jobs that you book, which is going to increase your total revenue. And it all plays into each other, but really it comes down to how many. How can I get 72 more leads in order to reach this goal? And that is what we do as a company is we help businesses get more visibility on their business, turn that visibility into leads so that they can reach their annual goals. So again, I'll put a link down to this spreadsheet down below if you're interested. Feel free to use it. It's free. It's a really cool tool. And if you have questions about growing your business, we post content, literally about increasing your visibility, converting more leads. So be sure to hit like and subscribe, and we'll see you in the next video.
