Leadership Qualities & Effective Communication ~ The Key Messages that get Portrayed to the Team.
A lot of consulting that I do, business owners talk about lack of revenue or lack of profits from that revenue and team dedication. What these all indicate are result measures. When you measure how a business is performing you want to make sure that the business has got sufficient profit, that it is being able to obviously meet its obligations but they are a result of the activities the business is carrying on so it’s vitally important to understand what these predictors are, of performance, and making sure that they are the ones that are measured.
If you measure these then business becomes a lot easier, your team understands what they have to do to drive these results. You can’t simply say to your team, “We need to increase sales by 10%.” How do they do that, what’s going to cause sales to increase? Is it capacity, do we need to work faster to be able to get to the work that we need to, to increase it 10%? Is it a simple price increase or is it winning new clients? If it’s winning new clients how do we do that? Is it simply asking our existing clients for a referral? Is it attending Chamber of Commerce events? Is it ensuring we are having a certain number of meetings that we are having with our existing clients? Is that a predictor because that generates referrals? Or perhaps it’s not referrals but more scope of work from existing clients.
The easiest increase in revenue comes from your existing clients. It’s already a trusted relationship and therefore you can talk to them about other services that you offer and it is easier for you to close them. You really must understand what are the drivers of your business. Understanding what activities you do to generate leads is key to all business but it’s not just always just the generation of leads, what about your conversion? Understanding how you convert, or your current conversion rate is key as what can be done to improve it? Understanding your point of difference, how you communicate that, why you are different to your competitors and why someone should come and use your services over your competitors is key to improving that conversion rate.
A lot of people think if you have a high conversion rate then you are not setting a high enough price; well that might be the case but sometimes you can create a market where you must have one. I suspect when the iPhone was first released the conversion rate of people coming to it, have a look at it, was incredibly high. Everyone needed to have one, it was the device that we all had to have. Your service can be the same. I’m not suggesting you need to win every one of your leads but probably not for the reasons that you are thinking, 100% conversion rate tells me that you are accepting every client. You don’t necessarily want every client, you want your ideal client. This concept of what your ideal client is and, moreover, actually being able to define it is not easy.
Leading Indicators ~ Love What You Do!
What you need to do is think about who you like working with. Is it a particular person, is it an age group, is it a particular industry? Once you have that then target new marketing towards that. If you get leads from outside those industries that doesn’t mean you don’t want to work with them but talk to them about what they want to achieve, understand if that’s going to work with your company. One of my mentors told me that it was all about the journey. You don’t want to get to the end result and be successful, potentially in your own right, but you haven’t enjoyed what you’ve done along the way, because you’re probably going to hate your profession, and not enjoy what you are doing.
I think we all got into the profession that we have been in because we fundamentally enjoy it so what we have to do is make sure we continue having that passion. I’ve talked previously about Keith Abraham, that I saw at a seminar. One of the things he said is that we must love what we’re doing, if we don’t it’s time to reflect on, is it time for a change? Or, do I need to fall back in love with what I do? I’m an accountant, do I love doing financial statements and tax returns? No. What I do love doing is seeing my clients grow, helping them overcome their barriers that they’ve got in their business, assisting with their issues. I love working out remuneration programs, I love designing KPI scorecards, opening opportunities for them that they didn’t see as possibilities and helping them with their business strategy.
Yes, we do financial statements and tax returns and it is a vital, important of our service offering but if that’s what I did all day every day I wouldn’t be very excited about what I do. I fell in love with what I do by realising that relationships are key. Being involved in a business, being a partner in my client’s business, being able to talk to them about their business and know a lot about their customers, about their team, about their strategic direction, is vitally important to me.
It’s the same with every business, the owner must love what they’re doing, have a strong vision of what they want to achieve and make sure they are living that or working towards that. Then you’ll love what you do. Once you’ve done that you then need to work out what activities are generating the right type of leads. Businesses, in my case, that are interested in growth, that want to improve the status quo, that feel frustrated at some of the blocks that they have and helping them being able to overcome them.
Effective Communication ~ A Key Ingredient to Success
Understanding how you attract those businesses, where they hang out and being able to communicate to them is key to have a successful business. It is vitally important to understand the lead measures in your business that are going to result in the outcomes that you want. If you need any help or if you’d like to have a discussion please don’t hesitate to give me a call and we can talk through what is possible.
Increase revenue by
15%+ using our
5 step success blueprint.
This simple guide shows how we work with our clients to achieve great results in their business whilst helping them build and maintain a lifestyle.