You’ve just been introduced to someone who was not only pleased to meet you because you have the chops to take on a hot project that’s on his/her radar screen, but additionally has the authority to green-light your hire. Oh, happy day!
You’re thrilled to do the credit card exchange as your newest prospect asks you to make contact to ensure that the two of you can talk specifics. You can almost taste the billable hours, but just how excited in case you be? Statistical probability can enable you to put a dollar value on your own happiness quotient.
I found this intriguing formula that uses historical data from sales outcomes and statistical probability data, enabling you to calculate the expected worth of the next prospect. As has without doubt been reflected within your experience, you will find a randomness to networking and Solopreneur consulting contracts. In your effort to take much-desired predictability and financial security for your life, the Solopreneuer’s objective is to control variables, positively impact outcomes, win projects and generate revenue.
Let’s say you’re speaking to a prospective client regarding a project which you estimate will be worth $10,000.00. The operative word is estimate. $10K is definitely the potential value, but it’s not the actual value until and until you or someone else is awarded the project. If no one wins the project, then it’s worth zero.
The project’s worth is impacted by the probability of an effective close. The subsequent formula enables you to calculate the potential worth of the prospect and the project through the various stages from the sales process.
The steps in the sales process and the values assigned at every step during this process are derived from historical data provided by a big corporate sales force. To refine the accuracy, identify the steps in your usual sales process and record your profits success rates each and every stage of your own sales process.
I. Identify the steps inside your sales process:
* Invitation to meet 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 probability of an effective outcome at each step:
* Invitation to talk about 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 each and every point of the sale to get a proposed $10K project
* Invitation to go over 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
Exactly what do the statistics mean? In case you are invited to meet with all the prospect, you will find a 2% possibility of winning the agreement at this point. If in that first appointment the prospect launches a conversation as to what would or may be needed with regards to project work, you bump as much as an 8% probability of winning the contract. The dollar values let you know how much the sales process is “worth” each and every step that leads approximately signing the contract, if you can to do so.
If in the conversation, or in a follow-up conversation or email, there is a discussion of project specifics, such as its purpose, needs and benefits, as well as the talk centers round the suitability of the rohnfp and expertise to complete the job, then there is a 25% probability that you will be awarded the project. Should you be invited to submit a written proposal, your opportunity of signing the contract advances to 65%.
The key to customizing the effects probability formula for your enterprise is keeping detailed records of sales presentations by which to compile your statistics. Here is yet another reason to document your business transactions so that reliable data will likely be there to help your small business planning.