December 23, 2021

We’ve already talked about this… but it’s a good reminder.

When it comes to setting your revenue goals next year, many entrepreneurs will toss out a number, i.e. “I want to be at $XX million next year.”

But when pressed on how they came up with that number, the consensus is: “Because that’s what I feel is possible for us.”

However, there’s a flaw in that approach.

The goal is arbitrarily chosen primarily based on emotions and gut feel.

However, there’s a more strategic approach (one that was forced upon me by a mentor who was, at the time, running a $400MM company).

It’s going month-by-month, creating a revenue forecast, starting with January.

For January, identify exactly how many contracts you need to sign, deals you need to close, products to sell, etc. – tally it up and add a total. You can account for recurring revenue as well as attrition.

In fact, I’m going through this exercise right now for our own company – and I’m realizing: “Okay, if we’re going to hit our goal, I’m going to have to hire a new salesperson by March, recruit more coaches by April, bring in a new Partner by May, etc.”

Simply by getting scientific with your projections… you’re not just setting a goal – but you’re also seeding the process of STRATEGIC THINKING.

You’re seeing WHAT NEEDS TO HAPPEN for the goal to come true.

Once you have January figured out, do the same for February… then March, etc.

Adding up all the months will tell you your new revenue goal for 2022…

…and looking ahead of what needs to happen each month will set the tone for the strategy.

Planning is an underutilized and overlooked strategy among many entrepreneurs – but the best tool leveraged by all top performers.

Something to think about 😉

Have a great night!