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Are you building your own business? If so, we have some tips for you!

Let’s say that your business currently brings in about $100,000 annually, but you want to increase that to $1,000,000. Once you figure out how to create a revenue plan, you can begin to map out a logical action plan that will allow you to reach your goal!

The gap between what your revenues today and what you want them to be defines your present and future objectives in the financial and non-financial terms. Once you understand the gap, then you can map out your plan.

You should list all the products and services that you provide, and then multiply them by the price you charge. Then, multiply that by the number you know you will sell. This could be a daily number or one that’s weekly, monthly, or annually. This will provide you with a very simple plan that you can follow and track how your business generates revenue. By doing this, you can make more sales, make more profit, and add more clients! All of this is good and will benefit you greatly.

Here is something really important that you need to remember. Your revenue plan consists of only four elements–the products and services you sell, the prices you sell them for, the quantity you plan to sell of each, and the time frame you want to sell them in. The total should then equal or surpass the revenue project in your gap plan.

The benefits of having a revenue plan are endless. It identifies what and where your business will generate income from and shows the income you want to achieve so it can be made possible. It also provides a financial roadmap that will help you go from where you are to where you desire to be. Having a revenue plan also puts your sources of income on file so you can review them. It will also allow you to track your revenue by week, by month, or annually.

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