Focus every day on your PBG and your sales will go up.
“Things that get done is what the Commander looks at ….”
That’s an ole Army bromide with a lot of truth. If you want your business to increase sales, focus on the activities done to increase sales each and every day. Don’t wait until next month when you’re disappointed about this month’s sales.
Here’s a simple method
Project your sales today based on where you are. Don’t wait for the month to be over. If your total sales through last night was $20,000 and you’ve been open 10 days in a month with 22 working days; just divide $20,000 / 10 = $2,000 x 22 work days = $44,000. That’s your projection.
Now where should you be?
I compare my projection against my BUDGETED sales, not last year’s or whatever. Why? Costs change from this year to last and, besides, it’s the relationship between your sales and your budget that determines income. It’s not between sales and last year’s sales.
So, I have my projection and my budget.
BUT a budget creates a financial goal, not a sales goal. Hit your financial goal and you get to keep your job, not prosper as we break even or even make a little. A financial goal is realistic.
On the other hand, a sales goal is optimistic. Hit your sales goal and make a lot of money.
Lacking any other information, I would set your sales goal 20% higher than your financial goal. That way, you can separate the good from the great.
Hit your budget sales or do a little better is a good job. Don’t hit your budget and, well, that’s a bad job. But do 20% better than your budgeted sales and that’s a GREAT job.
Keep the reporting of the PBG (projection, budget, goal) simple. Don’t get carried away with $54,908.32. Round your PBG to the nearest thousand then you can clearly see:
Well, in this case we’d better get some sales in the door or get our production out or billed. But here’s the beauty of the method. You know NOW where you stand in relationship to your goal; today, while you can still do something about it. Not sometime next month.
“What gets done is what the commander looks at.”
Do this on a daily basis and your sales will increase. Not just because you calculate and look at the numbers. But because we’ll be compelled to do something about it when we’re behind. Course, if we don’t look at the numbers everyday … well, whatever happens, happens.
So, focus everyday on what is important. Just the act of doing so will make it better.
At CPrint We Use the Budget and PBG
“If you don’t know where you’re going, any road will do.” Think that’s from the Wizard of Oz but it applies to us. That’s why the most fundamental concept used by CPrint International is the budget. Oh, it’s not hard, especially as we do all the “work” for each participant. And what I mean by work is taking the financials, converting to a projection format and providing guidance as you make the decisions on what you will commit to accomplishing.
And I’m pleased to report that during June, every CPrinter had May’s financials complete and had received a budget report comparing actual to budget. Every one. That means they start off July taking on the challenges of the month rather than waiting until half the month is over to do so. Think of how this would help if you could do it easily each month.
This is one of the fundamental ways CPrint pays; by focusing owner’s attention on their buildup of cash or lack of it, each and every month. After all, “Things that get done is what the Commander looks at.”
Want to know more about how the CPrint program may be of help? Email me email@example.com. And then, join me, in a no cost or obligation analysis of your business. You may be surprised what you learn. Again, email me at firstname.lastname@example.org and I’ll tell you all about it.
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