You’ve just been introduced to a person who was not only pleased to meet you because you have the chops to take on a hot project that’s on his/her radar screen, but additionally has the authority to green-light your hire. Oh, happy day!
You’re thrilled to do the credit card exchange when your newest prospect asks you to make contact so that the two of you can talk specifics. You can almost taste the billable hours, but just how excited in the event you be? Statistical probability can assist you to put a dollar value on your own happiness quotient.
I found this intriguing formula which uses historical data from sales outcomes and statistical probability data, enabling you to calculate the expected worth of your next prospect. As has without doubt been reflected in your experience, there exists a randomness to networking and Solopreneur consulting contracts. In your effort to take much-desired predictability and financial security in your life, the Solopreneuer’s objective is always to control variables, positively impact outcomes, win projects and generate revenue.
Let’s say you’re speaking with a potential customer in regards to a project which you estimate is worth $ten thousand.00. The operative word is estimate. $10K is definitely the potential value, but it’s not the real value until and until you or another person is awarded the project. If nobody wins the project, then it’s worth zero.
The project’s worth is impacted by the odds of an effective close. These formula allows you to calculate the potential price of the prospect as well as the project through the various stages from the sales process.
Both the steps within the sales process and also the values assigned at every step during this process derive from historical data provided by a big corporate sales force. To refine the accuracy, identify the steps in your usual sales process and record the sales success rates at every stage of the sales process.
I. Identify the steps within your sales process:
* Invitation to fulfill and discuss the project
* Initial appointment / discussion of needs and benefits
* Verbal proposal / assessment of needs and benefits
* Invitation to submit written proposal
II. Determine the possibilities of an excellent outcome at each step:
* Invitation to go over project 2% success
* Initial appointment / discussion of needs 8% success
* Verbal proposal/ assessment of needs and benefits 25% success
* Invitation to submit written proposal 65% success
III. Calculate the dollar value at every point from the sale for a proposed $10K project
* Invitation to talk about project $ 200.00
* Initial appointment / discussion of needs $ 800.00
* Verbal proposal / assessment of needs and benefits $2,500.00
* Invitation to submit written proposal $6,500.00
What exactly do the statistics mean? In case you are invited to satisfy with the prospect, there exists a 2% chance of winning the contract at that point. If in that first appointment the prospect launches a discussion in regards to what would or could be needed when it comes to project work, you bump up to an 8% chance of winning the agreement. The dollar values let you know how much the sales process is “worth” at every step that leads up to signing the agreement, if you are able to do so.
If in the conversation, or in a follow-up conversation or email, there is a discussion of project specifics, such as its purpose, needs and benefits, and the talk centers across the suitability of the rohnfp and expertise to complete the job, there is a 25% probability that you may be awarded the project. Should you be invited to submit a written proposal, your chance of signing the agreement advances to 65%.
The key to customizing the outcomes probability formula for your business is keeping detailed records of sales presentations out of which to compile your statistics. Here is yet another reason to document your business transactions so that reliable data will be there to guide your company planning.