How often are you reviewing your business plan and what step should you take when reviewing your business plan? When reviewing your business plan I recommend that you take the ‘number crunching’ approach as your first step. To begin your review, start by looking at your marketing or sales funnel and quantify this funnel. Look at how much revenue you are earning on each level of your funnel and then quantify the costs involved at each of those levels. This step allows you to see how much gross profit you are earning at each level of your marketing funnel. Once you’ve done that you will know how much ‘fat’ you have in your numbers and in your profit for you to able to ask; ‘Do I have enough profit, or gross profit more specifically, to be able to pay for any advertising or marketing strategies or business coaching support in my business?’
How can you make a decision about the marketing or advertising you can use in your business if you don’t know if you have the profit to support your efforts? That is why it is really important for you to review your business plan with a number crunching approach before you make any decisions in your business and before you start planning for the future of your business.
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