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How To Achieve Your Small Business Goals for 2011

By Tom Hopkins   |   December 15, 2010

Planning the Achievement of Your Goals
by
Tom Hopkins
Goal setting and time planning go hand in hand. I don’t believe you can effectively plan your time without goals. And, I don’t believe you’ll ever achieve your goals without effectively planning your time.
Since numbers are easier to work with than ideas, I’m going to demonstrate how time planning and goal setting work together to help you achieve your financial goals. The same system can be applied to any other goal you can measure with numbers, but this is the easiest way to demonstrate it.
First of all, determine what your financial goal is going to be. If you want to earn $60,000 next year, you’ll need to know exactly what you have to do to get there. This can be done with a simple graph shown below.
Year              Month             Week               Day
Financial Goal       $60,000        $5,000        $1,200          $249
# of Sales               120              10              2.4               .5
# of Presentations   360              30              7.2              1.5
# of Contacts         1,800            150              36              7.5
In order to make $60,000, you’ll need to be on track with earning $5,000 each month. Assuming you take a two-week vacation, that breaks down to earning $1,200 per week. Earning that $1,200 each of the 50 weeks of the year will let you truly relax and enjoy your two-week vacation.
To see how that breaks down to what you must earn each day, let’s take 365 (days in a year) and subtract weekends. In our example, I’m assuming you work 5 days per week. That leaves 261 days per year for you to work. However, that’s not true in that you are likely to celebrate various holidays and, don’t forget your two-week vacation. So, let’s take away 10 holidays and 10 vacation days. So, now you have 241 days per year that you are out there face-to-face with potential clients. Dividing 241 into $60,000 shows us that you must earn $249 each day you work. Now, if you take longer vacations or personal days or sick time, you’ll have to rework your figures here to stay on track.
You know how much income you generate from each sale on average. Divide that amount into your $60,000 goal, then across the month, week and day columns. This shows you how many sales you need to make each day to earn that $60,000.
For example, if you earn $500 per sale, you would need to make 120 sales per year, which averages 10 sales per month, 2.4 sales per week or about half a sale per day. So, if you didn’t close a sale yesterday, you’d have to close one today to stay on track.
Next, we consider your closing ratio. Your closing ratio is determined by how many people you must present your product or service to before you get a closed sale. If you close one out of every 3 people, then your ratio is 1-to-3. So, if you must make 3 presentations to get one sale, how many do you need to reach your 120 annual sales goal? 360 presentations.
If it takes 5 contacts to make 1 presentation, you’ll need to contact 1,800 people this year to achieve your goal. That boils down to just about 7.5 people per day.
Now, as you plan your time to accommodate your goals, is it feasible for you to make 7.4 new contacts each working day? If it’s not, you have two choices: 1) you can lower your income goal, which doesn’t sound like much fun, or 2) you can improve your skills so your ratios are better and you don’t have to meet as many people to make the number of sales you desire.
Knowing what you must do each day to achieve your larger annual income goal helps you direct your time to what will really matter most.
This same system can be applied to saving or investing your financial resources for retirement; a special family vacation; or any goal that can be broken down mathematically. Once you get a handle on this system, you’ll find you can even apply it to your exercise routine and other aspects of your physical health. If the small steps are well taken, the journey will reach a successful end—the achievement of your goals.

Goal setting and time planning go hand in hand. I don’t believe you can effectively plan your time without goals. And, I don’t believe you’ll ever achieve your goals without effectively planning your time.

Since numbers are easier to work with than ideas, I’m going to demonstrate how time planning and goal setting work together to help you achieve your financial goals. Read More »


The Easy Way to Generate More Customer Referrals

By Tom Hopkins   |   October 30, 2010

Building long-term relationships with clients is very similar to building long-term friendships. In kindergarten, children are encouraged to make new friends by talking with others, inviting them to play, and being “nice.” They’re often told: “To have a friend, you have to be a friend.” Read More »


How to Be Aware of Cultural Needs In Sales

By Tom Hopkins   |   October 9, 2010

If you do business with people from cultural groups different than your own, you would be wise to invest some time understanding their cultures as well as their needs in terms of your products and services.

You may not necessarily be doing business with people in another country, but with those from other countries who have relocated near your place of business. If you want their business, you have to understand their needs on many levels. Read More »


9 Customer Service Tips on Handling an Angry Client

By Tom Hopkins   |   September 9, 2010

Too many people, when faced with clients who range from dissatisfied to downright angry, choose the loser’s path by trying to avoid the situation. Worse yet, they handle it inappropriately. Postponement doesn’t make the problem go away.

It results in one of two things. Either the angry client decides the problem isn’t worth the aggravation and cools down. Or, the client gets so angry that the next time you hear from him or her is through some sort of official (and possibly legal) contact. Worse yet, you could see your company named on the local news channel in one of those consumer protection segments. Read More »


The Alternate of Choice Close

By Tom Hopkins   |   August 23, 2010

The Alternate of Choice is a questioning strategy I teach in every seminar, every book, and audio recording. It’s truly a staple. The reason for that is simple: It works.

Typically, I teach it as a question with two answers. Either answer is a minor agreement leading towards the major agreement, which is a closed sale. The critical element of this question/close is to offer only two answers, both of which move the sale forward.

It’s most often used for things such as getting an agreement for an appointment, the location of your appointment, a color choice, payment options, and delivery dates. It might sound something like this: Read More »


How to Achieve Pro Sales Status

By Tom Hopkins   |   August 9, 2010

You may do everything else masterfully but if you can’t close the sale, you might as well be a professional product demonstrator instead of a salesperson. The real pros in selling have certain skills and habits that make them stand out above average.

Here’s a Personal Inventory Evaluation. Take it and see how close you are to achieving “pro” sales status. Read More »


When Buyers Proscrastinate…

By Tom Hopkins   |   July 23, 2010

You will often encounter people who are just poor decision-makers. Perhaps they’ve never learned some basic life skills and made some bad decisions. Now, they just procrastinate until they can’t wait any longer to make decisions, hence the cycle of making bad decisions continues.

As a professional salesperson, you need to know how to recognize procrastinators and help them learn sound decision-making skills. Read More »


Prospecting Isn’t a Dirty Word

By Tom Hopkins   |   July 9, 2010

For too many people in business sales prospecting for clients is like fishing with only a string and a pole. They know if they throw something out there, they’ll draw attention. What they don’t understand is that you must first be at the right fishing hole. And, second, that you have to use bait that the fish you’re trying to catch like.

Let’s address the right fishing hole first. Answer this question: Who is your ideal client? You should be able to list at least five criteria of your ideal client without even blinking an eye. Read More »


How to Build Rapport in Sales

By Tom Hopkins   |   June 23, 2010

When you initially meet a potential client, the first thing you must do is establish rapport. The faster you can make this happen, the more sales you’ll make. It’s as simple as that.

The only way to accomplish this is through practice. I teach a learning strategy I call P.D.R.—practice, drill and rehearse. The more you do those three things, the faster these proven strategies will become ingrained in you. So let’s get started. Read More »


Close Sales By Listening

By Tom Hopkins   |   June 9, 2010

You can learn to listen for specific clues as to how to best present information to new potential clients.

By that I mean to listen for them to say, “I see what you mean,” or, “We look for ____ in a supplier” which usually means they relate best in a visual manner. Adjust your demonstration for this person to show them things. Take advantage of product brochures as visual aids as well as the actual products on the floor or demo samples you bring with you. Read More »