I was asked recently how I set such concrete revenue goals with confidence. A few people asked me to show them how I ‘forecast’ to which I replied I don’t really forecast at all. What I do is more like ‘reverse engineer’ a target that I feel like I can and want to hit. Then I spend the rest of the year maniacally focused on hitting it.
So – here is how I set my Revenue Goal this year – and how I intend to hit it. And why I know a 150% increase from 2009 will happen:
1) I first list out all the types of revenue I can generate from my business in its current state. For me these include:
- Speaking Events
- Coaching/Mentoring Clients
- Strategic Planning
- DVD Sales
2) Then I list out all the types of new revenues I can generate from Projects I 100% know I’ll launch this year if I focus. They include:
- CD Sales
- Online Webinar deployed learning
- Strategic Alliances/Others Selling my DVDs
3) Then I look at what I can charge for each in 2010…
- Speaking Events – I’ve decided to keep my fees the same for 2010 – $10,000 for Out of Town, $7,500 for Vancouver events, $6,000 for EO or YPO Chapters
- Coaching/Mentoring – I’ve raised my rates for all new clients to $4,200/Mth from $3,500/Mth (20% increase). I’ve done this because I’m currently close to my self imposed cap on how many clients I’ll work with at the same time.
- Strategic Planning – This will stay the same as in 2009 – $10,000/Day
- DVD Sales – I’m going to raise my rates on these in 2010 – from the current $197 each – to either $297 ea. or $597 ea. (seems crazy & arbitrary – but I’m told there is SO much value in them for Entrepreneurial companies and their employees that I should charge more. I’ll be doing some online testing with pricing – and doubt it will make a difference.
- CD Sales – This is a product that’s being asked for and will sell for the same price as the DVDs (it’s the same content – just another way to learn it)
- Online Webinar – I know I’ll launch it this year – but there is so much to do here still that I’m not forecasting any revenue from it at all (it will be a lift for 2011 though)
- Strategic Alliances – This is where I plan to get the biggest lift this year – and have the plans already in place – I need 10 solid companies or people with strong lists promoting my DVDs to their lists – and I’ll share a strong % with them from all revenues. This will scale…
4) Leading Indicators
I worked hard in 2009 to set up a solid base for 2010 so I’d have strong revenue predictability:
- I’m speaking at the EO GLC in Hong Kong & New Orleans (both will drive speaking events for 2010 & 2011).
- I have 2 strong Canadian Speakers Bureaus – and in December landed 2 very strong USA Speakers Bureaus.
- I’m speaking at the American Society Of Association Executives two conferences
- And have a couple of other strong platforms that will drive speaking for 2010 & 2011
- Speaking is predictable revenues
- At Events I also sell DVDs & CDs
- At Events I meet potential coaching/mentoring clients
- I have 10 solid companies that I am mentoring – 12 is my cap – so I will easily stay at my cap all year (and I’ve budgeted on 10 average – and in 2009 I only averaged 5 as it was a new model)
- Strategic Planning went really well last year with the companies I helped. I’m not the cheapest but I deliver huge impact while doing these sessions. Some clients have already said they’ll bring me back. Some already have me booked. And my speaking events will put me in front of hundreds of other companies who could use me as well.
- I have a few commitments from major online gurus like Yanik Silver who will be marketing my DVDs to tens of thousands of companies.
5) I know what my bandwidth issues are – and opportunities (i.e. 100% Net Margin DVDs) etc. So I’m using those to leverage revenues. And I also know there are brilliant people out there I can pay as a percentage of revenues (thanks Jack Daly for that lesson) and I’ll leverage that too. Intro’s have already happened.
From this rough plan that you’re reading – I already have tight action plans in place for how I’ll hit each one. I know the exact dollar amount I’m targeting from each category. I know what I need to do when. I’ve spent two years building my FaceBook & Twitter followers who are already helping me. So as you can see. I’m not just picking an arbitrary goal. I’m putting tight plans in place to hit it. And I will. As do the companies I coach & mentor.
Hopefully you have tight plans in place to hit your goals for 2010 too. If you don’t, then your goals are merely dreams…