💸 Bidding & Revenue

Starting Target Revenue

This is your goal for monthly gross revenue—the total amount of money you'd like to see coming into your business, before any expenses. It's best to set this as the target for this upcoming month, and to make it as accurate as possible: there's plenty of room to be ambitious about where you'd like to end up with the 'Growth Rate' metric, so don't stress.

Average Project Budget (Small & Large)

Your business may vary—perhaps you only have one offering, or maybe you have several price points that you offer. For simplicity, we're going to focus on just 2 average price points for this model: small and large. If you have past data on these points, lean on those—it will help keep your estimates accurate and therefore as useful as possible.

For example: If I'm a website designer, I might have two projects that I commonly engage with. 1) A quick website cleanup/fixup, billed at $750; and a larger full-scale build, billed at $4,000. These will have different times attached, and different conversion rates also, so in the above model we can separate these offerings for better accuracy.

Growth Rate

This is the rate at which you'd like to see your business grow month over month. Keep in mind that just a 2% month over month sees roughly a 27% increase over 12 months (which is, of course, quite ambitious the higher you go)—that is, if your target was '$1,000' in January, with just a 2% growth rate, your target would be about '$1,270' for December.

Pricing Increase Rate

This, too, follows a month-over-month curve (though you don't need to literally raise your prices every month). However, if you did want to steadily raise the pricetag attached to your services, this is a variable you can adjust—you'll notice that as you raise the price, naturally the number of projects needed / month goes down, as does the number of leads needed.

🪄 Conversions

Small & Big Project Conversion Rates

These are the respective rates at which you currently (or expect to) convert leads into active clients. If you don't have a good intuition or estimate for this, you can reference the model at the bottom of this page for help.

Existing Contacts Renewed

This is an important one. It's where you get some reward for all the hard work you're doing each month accumulating leads—and it's where you account for tapping into your existing pipeline. When we say 'renewed contact', we simply mean a lead which either: A) Rejected a previous proposal; B) Wasn't ready to speak yet; or C) Didn't respond, but you have reason they may still, then goes on to engage and become a live lead once again.

How you determine this number might be slightly more art than science, but the punchline is this: the larger your contacts list, the higher the number of renewed contacts you're likely to have access to. While this is on a diminishing curve, it is still an important piece of any healthy leads pipeline.

Offers Accepted Rate

This is a variable which describes your acceptance rate of offers made. There are multiple reasons to reject an offer made—sometimes the timing is off and we can't onboard the project, sometimes we change our mind, or sometimes we don't think the client will be a good fit. Giving an acceptance rate that isn't 100% simply means we have some wiggle room to be selective in which projects we actually onboard.

🙂 Contacts

Percentage of Happy Clients

Happy clients are more likely to refer (and, of course, they're even more likely to refer when you give them good reason to refer: so don't forget that, either!). Your input here will influence the total referrals count, and thereby either increase or decrease the number of outbound leads needed each month.

Starting Client Base & Contact List

This is pretty much as it sounds—wherever you are now, starting this process, input your current viable contact list. This list will grow month over month with each new leads prospected and contacted.

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