Chris P. Bombs – How to have real control of your business

– Hello, my name is Chris
Phillips and welcome to Chris P. Bombs, bite sized
bits to blow up your business. (coughs) Today, (clears throat) excuse me, today I am so excited
to show you a new tool that we’ve put together for you, it’s a free tool. It really is actually the
first module in the sales and marketing super course. People really really love this, but there’s a lot of math involved, and we’ve just decided we went ahead and digitized it for ya and
made a free product for ya. It’s really a testament
to the types of things that you’re gonna find in the sales and marketing super course. It’s called Revenue Buddy, and imagine if you had a tool that could show you
exactly when to hire people or how many new clients you need next week or next month to achieve your goals, when to market, when not to market, and how much profitability that
you’re able to come up with, and that’s what Revenue Buddy does. So this is just kind of a basic example. I just threw some numbers in here based on a company doing last year, $195,000, and I want to take that goal next year, or this year, 2018, to 255,000, and my average margin is 30%, meaning after everybody’s paid and I’ve paid for gas and marketing and the sales
commission and all those things, I’m profiting on about 30%. If you’re doing all the work yourself, that number’s gonna be
a little bit higher, you’ve got crews and stuff, it’s gonna be a little bit lower. And the average ticket
based on total revenue and divided by total jobs is $375. These are really really
important numbers to know. If you don’t, hopefully
you’re using a CRM, but if you’re not, hopefully
you’ve got this written down, it’s really important to know these numbers to help you visualize where
you need to be moving forward. So then the monthly
revenue capacity per crew, we always ran two men crews, and then I based on this scenario that I had two two men crews, they each were capable of doing about 17,000 at maximum capacity. So I just went through and I added the monthly revenue of everything that I did in 2017. We are in Michigan, so we don’t do a lot of business in January. It’s gonna peak there in June at 45,000 and kinda slide off into
the summer doldrums, but, so and you can put
multiple years in here. If you wanted to add a year,
you’re able to do that. You can see I did put
some numbers in for 2016. You simply hit the calculate button and so this is gonna give you some really really good information, so this first line is gonna
tell you how many new clients that you need to get every week to achieve that goal of $255,000 for the next year, so it shows you in February, I need to be adding a new customer every week in February, okay? And as you can see obviously I don’t need to go through all this, you can read, but it’s gonna peak in nine new customers per
week in June to hit that goal, but these are really powerful numbers, now, the next thing down here, it’s gonna show you, in fact, I’m gonna get back to the review, okay? You’ll notice there’s a
little clock and so the clock, that means boots on the ground. That means your time, okay? The dollar signs is gonna show you when you’re gonna start
spending the marketing budget to acquire your customers, okay? The very bottom here, you’re gonna see maximum
customer acquisition cost, so when you add all those, that information on your
margin and your average job, it’s gonna calculate
what we call a max CAC, and all that is is how
much you should ever spend to acquire a new customer, and based on the numbers, I put in here, I can spend $112.50 to acquire a new customer and
still not go negative, okay? So based on that $350 job, if I’ve spent $112 to get that customer, I’m still not gonna go
negative paying everybody. I hope that makes sense, but if not, Josh does a better job of explaining it through the videos, but so that’s a great number to know, and if you can get it down
to around 50 or even $40 then you really are crushing it, because remember, a new customer is going to give you value
throughout the years, after year after year, you’re gonna make more money on it, so that’s something that
it calculates out for you. So you can see in January, in February, in March,
it’s got the little clocks. Now, what that means is you can go out and you can be handing out flyers, ’cause you got extra time there you’re not running at full capacity. And I think I’ve showed you in the past, it’s important to put together
something for commercial and something for residential. I always recommend putting a
real price on the cards and, you know, with the Send Jim app, you can actually put a real picture of the customers’ house on there, but so that’s something that you can do, you can go out and network, do BNI groups, but now when
you’re getting it into March, you’re gonna need to start
spending a little bit of money on marketing. Now, this is amazing. This actually tells you a max and minimum of how much you
really should be spending based on this maximum capacity
to purchase a new customer. So in May, you’re gonna be needing to put on almost 30 new
customers for that month, and you can spend up to $3150
to get those 30 customers, and you’re gonna wanna try to shoot for this 1260,
that’s a better number. If you’re doing a great job
for asking for referrals and doing the little things like that, that number really should
be closer to the 1260, but isn’t this cool? It really gives you kind of a layout of exactly what you need to be doing. The average percentage of
yearly income is just kind of, this is the total number divided by 12, so this breaks it
down to weekly revenue goals, so you know exactly what
you need to make per week, and this is gonna go through for us about a 38 week season weekly base revenue where
you can’t drop below that, and then it’s gonna give you a gap number, and that’s what you are
closing in on to go from 195 that I did last year to $255,000. So it really helps you to visualize and understand where you’re going. The monthly section is very similar to what I just showed you, but it’s gonna give you all
these numbers, obviously, you’re gonna really need to
be hitting the ground hard, and spending some money on
marketing in the hot months. Now, typically what we do is we don’t spend anything
on marketing when we are going gangbusters, and we spent all the
money when we are slow, that’s the worst thing that you can do. You wanna spend the maximum amount of money when people are buying, and if you can’t get to ’em, that’s a good thing
because you can always say, Mrs. Smith, if you can wait till August, I can give you 10 to 15% off, ’cause we really slow down, and it’s a great way to
try to get that gap filled and level that, the ebbs
and flows of everything, so I hope this is making sense. This gives you a lot more than just what you need numbers wise, this is actually gonna
give you information like when you need to hire, obviously, so the blue area here is how many
employees based on the numbers and based on the information we give ya, is when you’re gonna
need to hire new people, because if you wanna hit
that goal there in June, you’re gonna need 6.6 employees
out there in the field, so it gives you the idea where you can look at
this in a snapshot saying, hey, I’m gonna need
some part-time help for like three months of the year. It might be a great time to look for a college student just looking for some supplemental
income over the summer. There is also, here this is a little link to show you a little
bit more about the sales and marketing super course, and then you can go in here
and play with the numbers. It’s an amazing tool, it really helped us when we started implementing things like this. There was no guesswork. It’s one thing to say, hey, I really wanna do $300,000 this year or $250,000 this year, but to be able to know daily, weekly, monthly, what those
goals are and how to achieve it, when you might need to start buying some more extra equipment and hiring people, it’s a great tool. It’s yours free and so if you like this, go to, you just fill in your email address, you can sign right up for it, and it’s yours as a free gift for us. So why do we do this? We do have an incredible sales and marketing super course and you can learn more about that here. This is what we call content marketing and it works in your business as well, and I think I’ve preached on this a little bit when you can go to like your local newspaper and just give a lot of great
information to the community, maybe just about how to do something like clean windows
(chuckles) the proper way so you’re giving in order to be heard. And so that’s what we are doing with this. I hope you found this of a value. Don’t forget to hit
subscribe and don’t forget to come out and get your Revenue Buddy. Thanks, have a great day, and God bless.

, , , , , , , , , , , , , , , , , ,

Post navigation

Leave a Reply

Your email address will not be published. Required fields are marked *