The One Thing That Uplevels Your Plan To A Powerful Business Tool

TRANSCRIPT AUTOMATICALLY GENERATED Hey, Hey. So by now you have probably made your plan for 2023 and before you run full tilt into it. And before you go off on vacation, I wanted to make sure that there was one thing that you had done with that plan. Which is going to make your life. So much easier in 2023. And help you really stay on track to those goals. So when I changed roles, In banking. I moved to a new role in January. So planning for this year. For this part of the business had been completed. And I was left. Wish. Several numbers at a really high level for each of my kind of sub businesses that I was looking off to. In my role, I was responsible for the numbers for this business. For the entire year. Why we were on plan off plan. Whether we needed to extend the plan and as you can imagine, Doing that when all you have is a high level number is incredibly difficult. Now we were doing this on a daily, weekly, monthly, all the numbers kind of basis. And I'm not suggesting that you do that. But if all you have done is a really high level member that maybe you've divided into the number of months or by quarter. Or you've done like a rough kind of estimate of like, if I sell this many of this, this many of this, and this many of this, then I can hit that number. Or like, I need to make X amounts and this launch and X month in that launch. You're potentially doing yourself a real disservice as you go through 2023. The point of a plan is not simply to give you something to aim at. You want your plan to act as an information source for you? You want it to give you data on a regular basis? Not just are we on plan or are we off plan? And the number one thing you need to do. To get your plan to work for you in this way. Is to write down. Every assumption you made. So let's say your plan is for a million dollars for the year in revenue and you sell something for. A thousand bucks. And so you have to sell a thousand of them. When you've made that plan and you've looked at that equation and you've gone. Okay. That seems reasonable. I want you to ask yourself why. Why do you think you can sell a thousand of those things for a thousand bucks? Is this the price that you've been selling at for six months? Are you doubling that price? If you're doubling that price, what is that based on. Even if you have pulled numbers out of thin air, there's an underlying assumption that you've made. About that number about why you can hit that number about why that's your goal. And I really want you to document that. In this time of year. You won't believe that you will ever forget why you chose that number? I'm promise you, if you look back. In a month, three months, six months, definitely a year. Y you came up with that number and that ribbon you split buy those products at those prices. Is going to be so far distant from all the other things that you've had to think about and decide since. That you're not going to be able to give yourself. The data that you need. So let's say we're in there, we're selling a thousand things and we're selling them for a thousand bucks. Let's assume the price hasn't changed. So you've been comfortably selling out a thousand bucks. Your assumption there is that the recession is not going to require you to change your prices. It's also that you're not going to add anything additional that requires a price increase. So that's why you've chosen to keep your price consistent. For example. In order to sell those thousand things you have probably, or you should have. Thought about what that will take. What is your conversion rate? Let's say you close five out of 10 sales calls, you need to have 2000 sales calls. If 10% of your leads. I book a sales call would now like, timesing that by 10 in order to work out how many leads we need. Then what is your conversion rate? On your opt-in to actually get that lead. So how much traffic do you need? These are all assumptions that are built into your final number. When we look back at month one, and we say, Hey, we needed to make like 80 grand to be on track to make our million for the year. And that meant that we needed to. Have sold. 80 of the service. So we needed to have had 160 sales calls, et cetera, et cetera, et cetera. You now have data that can tell you where you're not hitting things. I can tell you if you're sales conversions, the problem, it can tell you if your lead flow is the problem. It can tell you if your traffic is the problem. Suddenly you not hitting plan provides you with data. And you get to Oscar yourself. Where my assumptions, correct or incorrect. If your assumptions were incorrect, what does that mean for your plan for the year? Does it need to be adjusted if it was too low, do you need to stretch it? If you estimated you could make more money than you actually can. Now looking at the data. What else can you sell to backfill that number? Your plan is not simply for you to look and be like, oh, I was supposed to make 80 grand and I only made 40 grand. Oh, no. That's not the idea behind a plan. Yes, it's something to shoot for, but it should be so much more than that. You need to document those assumptions, because then you can always tell which assumption where you often, which driver of that plan number will you incorrect on. And then you know where to go and investigate. This takes your plan from being a number that you're shooting for to being an actual tool that you can use in your business in 2023. And it's going to help you investigate and make changes more quickly. When you need to get back on track.