What To Look for In Hitting Your Revenue Target

After working with small to medium-sized business owners and CEOs on revenue generation for over 20 years, I’ve gained extensive experience. I’ve learned a lot, and I’m happy to share my insights with clients.

Many CEOs don’t realize what’s stopping their business from growing. Spoiler: it’s not your marketing agency or your internal marketing team.

I can determine in 10 minutes whether a CEO will meet their revenue goals. Here’s how I do it and what I ask:

1. What is remarkable about your company? How do you stand out compared to your competition?
2. How do you set your revenue goals each year and each month?
3. What have you budgeted for revenue generation support (marketing, sales, and customer service) for the year?
4. How many website visitors, leads, and sales opportunities do you get monthly? What’s your close rate on proposals? How many new customers do you sign each month, and how much revenue does that generate?
5. What does your sales process look like? Can you send me a visual map of what everyone does and when?
6. What technology platform do you use across marketing, sales, and customer service?

These six questions usually take only 10 minutes to answer, but most company leaders struggle to answer them adequately. This often indicates they won’t hit their revenue targets.

Let’s dive into why these questions matter:

Question 1: What is remarkable about your company? How do you stand out compared to your competition?

If your business is ordinary or just like your competitors, generating leads and sales will be tough. People need a compelling reason to choose you. Many businesses fail to stand out and resemble “brown cows” (common and unnoticed) instead of “purple cows” (unique and eye-catching).

Common but unremarkable answers include:

• “Our people are great.”
• “We’ve been in business for 30 years.”
• “We have the best service.”
• “We do whatever it takes to make the customer happy.”

To be remarkable, your business needs to offer something truly unique that no other company can claim.

Question 2: How do you set your revenue goals each year and each month?

Many companies just add a percentage to last year’s revenue to set new goals. For example, if they made $5 million last year, they aim for $6 million this year and divide that by 12 for monthly goals.

A better approach is to calculate how much new revenue is needed and differentiate between new and recurring revenue from existing customers. For instance, if only $4 million of last year’s $5 million is expected again this year, you need $2 million in new revenue. Determine how many leads you need to generate this new revenue and assess if it’s achievable.

Question 3: What have you budgeted for revenue generation support for the year?

This question expands on the second one. Do you have enough budget to support the necessary marketing, sales, and customer service efforts to achieve your goals? Misalignment between goals and investment is common. Sometimes, you might need to significantly increase your marketing budget to generate the required leads.

Question 4: How many website visitors, leads, and sales opportunities do you get monthly? What’s your close rate on proposals? How many new customers do you sign each month, and how much revenue does that generate?

Understanding your current metrics is crucial to determine if you can reach your goals. You need to know:

• Monthly website visitors.
• Number of leads generated.
• How many leads turn into sales opportunities.
• How many opportunities result in sales.
• Your sales team’s effectiveness.

This data helps you model how to achieve your revenue goals and measure your revenue generation system’s effectiveness.

Question 5: What does your sales process look like? Can you send me a visual map of what everyone does and when?

Many companies lack a formal, documented sales process, meaning there’s no consistent process at all. A well-designed sales process ensures everyone follows the same steps, creating a remarkable experience for prospects and increasing the chances of converting them into customers.

Question 6: What technology platform do you use across marketing, sales, and customer service?

Your technology stack is crucial. Disparate systems or point solutions (single-function tools) can hinder growth. An integrated platform (like a CRM) is essential for tracking, automating, and analyzing data, making informed decisions, and ensuring data accuracy and accessibility.

Conclusion

When I talk with CEOs, I need clear, well-thought-out answers to these six questions to gauge if their company can achieve its revenue goals. Unclear or insufficient answers usually indicate a low chance of success.

Understanding these areas helps CEOs identify what needs attention, action, and improvement for better revenue results. By focusing on these six questions, businesses can prepare effectively and aim for a successful year ahead.