“The secret of getting ahead is getting started. The secret of getting started is breaking your complex, overwhelming tasks into small manageable tasks, and then starting on the first one.” – Mark Twain
Key element number 3 in achieving your goals is that your goals must be specific and measurable. Just saying you would like to make $100,000.00 this year won’t get you $100,000.00. You need to map out your plan of action. This course of action fits the self-employed as opposed to a person drawing a salary. If you are not self-employed, then your salary is tied to what the company thinks you are worth. An employee will either have to prove he/she is worth more, change companies where there is room to grow or do something on the side that is your own business and where you control how much you make.
Remember, just saying you want to make $100,000.00 isn’t enough; you need to break that amount down into months, then weeks, then days and hours if that will help you visualize the way to achieve your goal.
For this example, I will use real estate sales, since that is what I am most familiar with, but you can apply it to just about any sales position or position where you are paid by the size jobs you bring to the company.
Let’s say the average sales commission – on your side – is $1,500; how do you figure you can make $100,000.00. Simply divide 100,000 by 1,500 to come up with the amount of deals you need to achieve that number. So 100,000/1,500 = 66.66 – we will round that number up to 67. Now you are going to divide 67 by 12 – the number of months in the year (or you can divide by 11 or 10 if you want to take 1 or 2 months off during the year.) Since you are just starting out, we’ll use the number 12. So 67/12=5.58. That means you will have to make 5.58 sales every month, or rounded up, 6 sales every month. If you prefer calculating by the quarter, or every 3 months, you will need to make 18 sales every quarter.
OK that sounds easy enough, but are you going to sit and wait for those sales to drop in your lap, or are you going to do something pro-active to get those sales. Let’s think in terms of how many people it takes to get one listing, or how many homes you need to show before you make one sale.
Let’s start with listings. I’m going to use an arbitrary number, but you will need to find your own number. Ok, lets say it takes talking to 15 people before you get one listing and you want to acquire 5 listings per month. How many people do you need to talk to in one month to get those 5 listings? Simply multiply 5×15 to get the number 75. Now if you break that down into weeks you will divide 75 by 4.33 which equals 17.32. I always like to round-up since it will be hard to talk to a third of a person. So now we have a number – 18 people you need to talk to in one week. You can break that down even further by dividing 18/7=2.57 people per day. Again, round-up to 3 people per day. So now you have a plan of action on getting more listings. To get 5 more listings in one month, you will have to talk to about 3 people per day who are interested in listing their home.
We all know, in this economy, just because you have a listing it doesn’t mean it will sell. You also have to try to sell homes. On average, how many homes do you show a prospective buyer before they purchase a home – 10, 20, 30? For this example, we will just use the number 12. You will need to show 12 homes before your buyer decides to purchase one. You want to sell 6 homes in one month, therefore you will need 6 buyers and show each buyer 12 homes. That’s a whopping 72 homes in one month, or 17 homes in one week – a little easier number to work with! Break that number down more and you need to show 3 homes per day – 17/7=2.42.
Oh, you have no buyers and want to know how are you going to get 6 buyers every month. Utilize the same formula you used to get a listing. If you have to talk with 15 people before you get one buyer you will need to talk with how many people? 15×6=90 people per month or 90/4.33=20.78 people per week – round-up to 21 then divide 21/7=3 people per day. So there you have it. You will need to talk to 3 people every day about selling their home and another 3 people every day about buying a home to get your listings and buyers; and you will need to show each buyer an average of 3 homes per day.
Now you have a plan of action to reach that number of $100,000.00 this year – so get talking!
If you want to lose weight, run a marathon or anything else – just apply the above formula and break down your goal into bite-size pieces. It makes achieving your goal a lot easier to swallow.