A lot of times when I’m sitting with clients, they will ask for a sample business development plan – a template that they can follow for business development success. If that sounds like you, then this post will help you.
The Tough Questions
If you’ve ever asked a “business development guru” for advice on your business plan, it probably started with some really tough questions…
What’s the purpose of your business?
How much money do you want to earn?
When do you want to have this money by?
What products and services will you offer in exchange?
Who is your target market?
The list goes on…
While these are all very important questions, they don’t necessarily hit on the main point.
The main point is that you want to grow your sales. You want to grow your earnings. You want to make more money.
How can you do it?
The obvious answer is…TO MAKE MORE SALES!
Sales are the lifeblood of your business. No sample business development plan is going to be worth anything to you if it doesn’t stress the importance of learning how to make more sales.
So here’s what you do…
Make A Sales Plan
For the time being, skip the usual questions and ask yourself these ones instead (take out a pad and paper and write these down with your answers).
1. How do you make sales (do sales happen for you over the phone or in-person)?
2. What happens before you make a sale (a phone conversation, in-person meeting)?
3. How many times does the activity identified in question #2 have to happen before you get a new sale (in other words, how many appointments do you need to get a new sale)?
4. What’s the average size of your sales in revenue?
5. What are your revenue goals (if you don’t have revenue goals, you should set those – we’ll write on setting sales goals soon)?
Once you’ve answered those questions, it’s a simple math problem, right?
You take your goals, the average size of sale, the average number of customer touches it takes to make a sale, and you simply deduce the number of customer touches you’ll need to hit that mark.
Let’s Take An Example
Suppose you want to earn $1,000,000 in revenue over the year. Let’s say your average sale size is $10,000.
$1,000,000 = $10,000x
x = 100
So you know you have to close 100 deals to make $1,000,000.
Let’s say it takes you 5 appointments on average to close a deal. To close 100 deals, you would need to go on 500 appointments.
That means that in an average 50 week year, you would need 10 appointments/week.
So there you have it, the best sample business development plan you could ask for. You don’t have too much to think about – just go on 10 appointments/week and you hit your goals, right?
This is an overly-simplified version of what we do with clients.
1. Determine how much you want to make
2. Figure out how you make money
3. Do the math to see what level of activity is required
There are some other things you can do to help with this process. For instance, sometimes we have clients tell us that they need to go on 25 appointments before they close a deal. In that case, we explore ways that they can shorten the sales cycle.
Or sometimes clients earn a small amount of revenue per sale. In this case, we look into ways that they can change their offerings to earn more.
In conclusion, there are a lot of things that go into the ideal sample business development plan – lots of things that are specific to your business.
But the #1 thing that you need to focus on is getting more sales. Look at your sales process, determine your goals, do some math and MAKE IT HAPPEN!
Would you like some 1-to-1 advice to help grow your small business? Contact Jacoby today and start a new growth cycle.
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