You’ve just been introduced to a person who was not only happy to meet you because you have the chops to take on a hot project that’s on his/her radar screen, but also has the authority to green-light your hire. Oh, happy day!
You’re thrilled to do the card exchange when your newest prospect asks you to make contact to ensure that the both of you can talk specifics. You can almost taste the billable hours, but how excited in the event you be? Statistical probability can enable you to put a dollar value on the happiness quotient.
I found this intriguing formula which uses historical data from sales outcomes and statistical probability data, enabling you to calculate the expected price of your upcoming prospect. As has undoubtedly been reflected in your experience, there is a randomness to networking and Solopreneur consulting contracts. Inside your effort to take much-desired predictability and financial security in your life, the Solopreneuer’s objective would be to control variables, positively impact outcomes, win projects and generate revenue.
Let’s say you’re talking to a potential customer about a project which you estimate will be worth $ten thousand.00. The operative word is estimate. $10K will be the potential value, but it’s not the real value until and unless you or another person is awarded the project. If no one wins the project, then it’s worth zero.
The project’s worth is influenced by the odds of a successful close. The following formula enables you to calculate the possibility worth of the prospect and the project throughout the various stages of the sales process.
The steps in the sales process and also the values assigned at each step during this process are based on historical data provided by a large corporate sales force. To refine the precision, identify the steps within your usual sales process and record your profits success rates at every stage of the sales process.
I. Identify the steps inside your sales process:
* Invitation to satisfy 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 every 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 in the sale for any 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 do the statistics mean? In case you are invited to meet using the prospect, there is a 2% possibility of winning the agreement at that point. If in that first appointment the prospect launches a discussion about what would or could be needed in terms of project work, you bump up to an 8% possibility of winning the contract. The dollar values tell you exactly how much the sales process is “worth” at every step that leads approximately signing the agreement, if you can to do this.
If in the conversation, or in a follow-up conversation or email, you will find a discussion of project specifics, such as its purpose, needs and benefits, and the talk centers across the suitability of your rohnfp and expertise to complete the job, then there is a 25% probability that you may be awarded the project. If you are invited to submit a written proposal, your opportunity of signing the contract advances to 65%.
The key to customizing the outcomes probability formula for your enterprise is keeping detailed records of sales presentations out of which to compile your statistics. Here is an additional reason to document your small business transactions so that reliable data is going to be there to guide your business planning.