EP:73 Planning for 2020 With Steve Burnett & Scott Lollar
WHAT YOU’LL LEARN:
In this episode of the DYB Podcast, Steve Burnett and Scott Lollar sit down and talk about planning for the upcoming year and why you should do it too for your business. From reviewing your vision to performing an honest SWOT Analysis to investing in marketing, there are many ways to move your business forward depending on which stage of development you are currently at.
Some key things that are universal across businesses however are the preference to outsource and automate and to streamline the budgeting process. Improvements in these areas will definitely have an impact on one of the most important key performance indicators of your business: gross profit.
(04:16) “If you say want to triple your business in 5 years, there’s implications for that vision for your 4, 3, 2, and now, right? So we can’t just say we want to be a 3 million dollar business and have 6 painters, right? We know that math doesn’t work so the vision helps bring clarity to all aspects of your business.”
08:44 “And we find people cannot achieve a company that exceeds a million if they’re not willing to delegate and let go because if you’re gonna keep it on your plate, your plate is just not big.”
12:11 “When you grow over a million dollars, we usually see an increase in investment in marketing. DYB is a total advocate of anything but ads to doing things that are organic and free.
But there’s gonna come a point in time when you wanna go from say 900,000 to 1.5 million, you’re going to need to put some gas on that fire. So how are you gonna do that? And you need to do an analysis of your current lead flow.”
17:27 “A budget’s important for several reasons. First of all I want to start at top line revenue. We know from the power of attraction, the science around goals, that to have a goal really activates the brain to achieve it and to get after it.
So if you don’t know how much you need to sell for January, how are you going to hit that target? You need to know the target clearly.”
19:21 “Really start looking at some KPI’s which are some key performance indicators so you know you should be looking at lead to sales ratios. You need to look at backlog. You should be looking at revenue per direct labor hour. Absolutely, gross profit is key here.
We could care less how much money you do in revenue if you’re not putting it in your pocket. So we know that we need gross profit to run our business and to pay ourselves.”
05:08 Perform a SWOT Analysis
10:36 Create positions & invest in marketing
14:36 What to outsource?
17:20 How to budget?
LINKS & RESOURCES MENTIONED IN THIS EPISODE