Have you had an unexpectedly great month in your business? Before you do a happy dance and thank your lucky stars, a better move is to stop and deep dive into the nitty gritty of your windfall.
Have you ever felt that delicious jolt of surprise when you discover your business has had a surprisingly good period? One of our clients reached out recently with news of the biggest monthly revenue of her business’ six-year history, three times more than the prior month and almost four times higher than the same month in the previous year. Discovered during her monthly brunch date with her numbers, she was (understandably!) incredibly happy and excited, if not a little bewildered when we asked her how she accounted for it.
There’s a temptation when things are going well with money consistently landing in your bank account to take a break from the deep analysis needed to know your numbers. However, it’s a really clever strategy to spend more time, not less, in understanding the drivers behind your success.
Having an intimate knowledge of your numbers means you can clearly identify what’s working in your business, as well as what’s not. It gives an opportunity to evolve your strategies, be agile and grow your business. When you have an insight into why something worked (and had such a spectacular result) it makes it easier to recognise if it is something that can be replicated, or if it were something that was simply a fluke. Spoiler alert- it rarely will be a fluke; even if it appears to be something unexpected, often it can be turned into a considered strategy.
There is a level of detail necessary to deeply analyse wins. It’s this clarity from knowing your numbers that allows you to learn more about your clients or customers and what they want from your services. You can explore which marketing strategies are working, and which are working overtime. You can leverage off what’s working so hard and effectively for your business and double down on these. Did the boost in your income come as a result of you spending some dedicated time engaging with your network on LinkedIn? Did that Facebook ad campaign turn followers into buyers? Did you meet a new client at that networking event you attended?
In the case of our client doing her happy dance, her deep dive into her month revealed that the largest portion of her income came as the result of a direct referral from another client. Clearly, she is giving such a wonderful experience that her clients are spreading the word and doing her marketing on her behalf. Now, she is now going to create a dedicated strategy around nurturing her existing client list and directly requesting referrals, with a gratitude practice that includes gorgeous flowers and chocolates. Bottom line–rather than celebrating her win and then moving on to the next month, she sat down, worked out why it eventuated, and created a plan to allow it to happen again.
How well can you explain your income wins? This is the kind of data that absolutely lights us up- almost embarrassingly so. If you’d like a hand understanding your numbers, please reach out.