On your drive to success, you need to know if you are making good time or if you are stuck in the mud. In a post at Consulting Success, Michael Zipursky shares five ways to measure how well your consultancy is growing. Here is how they break down:
Full Sales Speed Ahead
Outreach is email or actual mail you send, the calls you make to people, and other ways that you reach out to ideal clients. You want to keep track of these communications and how often people are actually responding. If they are not responding, there is likely a problem with your messaging or value proposition that must be addressed.
The other critical aspect of outreach is following up when contact has been established. One study found that “80% of sales are made on the 5th to 12th contact,” so keep in contact with potential clients, even the ones who do not have a use for your services right this second. In cases however where a serious chance of business might occur, that of course demands healthy conversations with the potential client. About how to measure quantity and quality of conversations, Zipursky offers this:
If you’re not having enough conversations focus on [outreach and follow-up] above. If you’re having a lot of conversations and not getting to the proposal stage you’ll want to improve your sales conversation skills, how you engage in a conversation, ask the right questions, and your approach or lack of communicating value to the buyer.
About proposals, keep track of how many of them you send each week and month, but be mindful to only send them to businesses who have expressed active interest in working with you. If you are not sealing the deal on at least half of your proposals, it probably means you are not conveying your value well enough and/or the risk of not proceeding forward with your services.
Sales finally are the result of the other four measures. If sales are not where they need to be, look at outreach, follow-ups, conversations, and proposals. Simple enough.
You can view the original post here: http://www.consultingsuccess.com/5-stages-to-measure-the-growth-of-your-consulting-business