Easy Math
For those not comfortable thinking about their business in numbers,
Working with metrics can feel intimidating and confusing.
But here's how numbers can actually make everything
Simple and predictable:
Take your revenue, for example.
How can you predict how much revenue you'll receive next month?
Easy. 👇
Of your current revenue, how much will happen again next month?
Write that number down.
Now, how SURE are you about that number?
Write that confidence down as a percentage (eg. 80%),
Then multiply that percentage by the revenue number you already wrote down.
Voila! This is your predicted Reoccurring Revenue for next month!
Now to add new revenue:
How many potential new customers are you speaking to right now?
What percentage of them will likely become paying customers by next month?
Now, what is the AVERAGE amount of revenue you'd likely receive from any new customer?
And, how confident are you that each of these potentials will convert to customers by next month?
Multiply these 4 numbers together and you will get...
...Your predicted New Revenue for next month.
Predicted Reoccurring Revenue + Predicted New Revenue = Total Predicted Revenue
And you're done.
It's that easy.
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