Numbers? But I'm the marketing guy!

If I asked most small business owners how they'd know if 2006 had been successful, I suspect I'd get a grin and the answer, "if I had any money left in the checking account on December 31st."

While they'd mean it as a joke, it isn't all that far from true.  Let's be candid with each other.  Isn't it one of the unfathomable truths that most business owners/managers don't set or measure financial goals?

I get it.  Numbers aren't fun or sexy.  They aren't interacting with the customers or mentoring the employees. But, without an understanding of the numbers - those opportunities go away pretty quickly.

Think of it this way.  If you were going to build a house, how would you know how much lumber to buy if you didn't have a blueprint?  Before we can craft a marketing plan, you need to know what you're trying to build.

Do you know the answer to these questions?

• What is your sales goal for 2007?
• How will you measure/track that goal?
• What percentage of those sales should come from current customers?
• From new business?
• What is your ratio of gross sales to cost of goods sold?  (What percentage of your GS is left for you to spend = Adjusted gross income or AGI)
• What's your monthly overhead cost?
• What's your monthly salary/benefits cost?
• By client, how profitable are you?
• By product line/service, how profitable are you?
• How have your business sales trended over the past 3 years?

If you already know the answers to these questions - excellent.  But, if you are like most business people, you might be able to guess but you don't really know for sure. 

Isn't it time to know for sure?  My next post...we'll begin to build a plan to help you achieve those numbers.