Heck, I would be happy to make $100
Thats a great way to break it down, its exactly what you need to do to reach a specific goal. I do that every year. What I have always done in the past is held myself to 25% growth per year. So if in 06 I made $100,000 , I would need to make $125,000 in 07.
This year 08 I dont want to make a dollar more total revenue than last year. I want to make more by improving profit margins. [SIZE=2][COLOR=#000000]We will make more by spending less.
So to increase profits, we have to decrease the costs of doing business[/COLOR][/SIZE][SIZE=2][COLOR=#000000]. We will accomplish this by reviewing all aspects of each cost area and determining its impact impartially with statistical analysis. the idea is to leave no stone unturned in the quest to determine where costs can be effectively removed or at least lessened. [/COLOR][/SIZE]
Chris: I hope your going to raise prices too.
Always… Im a huge fan of price increases
I don’t have a number I [B]must [/B]make in 2008.
I’m okay if I make the same as '07, and I’m okay if I make less.
I have systems in place that lead me to believe that I will make substantially more, but I don’t feel that I [B]must[/B] do so, if you know what I mean.
If my company hits the [I]$250[/I] mark in 2008 I [I]won’t be[/I] surprised.
If it hits [I]$500 [/I]I [I]will be [/I]surprised.
I don’t think it will generate more than that, but hey, we’ll see how it goes…
P.S. What I have discovered in the last 4 years (especially) is that intelligent implementation of proven, scientific business building strategies creates a steamrolling monolith of a business. An ‘explosive effect’, if you will. As such, I have found that it is difficult to accurately predict its future impact.
I look at things alittle differently in that…i dont look at or consider my regulars(be it monthly,quarterly’s etc) as a Gage to what i predict i could possibly gross or not for the upcoming year partly because…there a shoe-in for the most part.I focus on what i would most likely generate from there (ie:new accts)…figure what i would like to do on top of that existing customer base gross.
Chris’s theory on decreasing costs to increase profits is what you really have to concentrate on and that 25% growth rate is more then realistic.
Talk about squirrely…
A good example is my 1st year(half year actually june to dec 04) here in my new area i did just shy of 35,000 the 2nd year(being my 1st full year 05) we did 72,000 humongous leap then increased to 92,000 in 06 then finally cracking 6 figures in 07.
I am very satisfied with meeting the goals I have put out each year. I believe I am at a point where I am not going to make much more than I have in 2007. I have been servicing most of my accounts for about 8-10 years now so my job sites are completed efficiently and a few years back did as Chris stated about decreasing costs. I will raise prices as usual (to adjust for labor and fuel costs) and can expect some new customers, so unless I add an employee or two I am about maxed out. This is a good thing for me because what I started with and what I have built I am proud to be where I am today.