Every business owner has a big vision for their company and wants to make it happen. The problem is, most owners aren’t sure how to move forward and grow revenue, leaving them confused and frustrated. That was certainly the case with a professional services firm I’ve been working with for about a year now.
In our initial planning, we developed a BHAG (big, hairy, audacious goal) of $10 million in revenue or $27,000/day. This is incredibly challenging, especially for a firm that gets paid for their time. First, you have to determine how many hours in a day you’re going to work, how many of those hours are tracked, how many are billable, then how many are collected.
Once they set their goal, we looked at the financial health of the company and put together a specific plan of things we could do to accelerate revenue growth. This included looking at their technology, such as time-tracking and billing software, to be sure we were capturing as much time as possible and capturing it accurately. We then established key performance indicators for an amount of billable time, how we were converting time incurred to billable time, and how much billable time we were actually collecting.
Next, we converted those plans to specific processes for time tracking time, invoicing, and collections. In case you’ve missed it before, check out why documented processes are crucial to growing your business.
Due to the focus this company had on processes, they have doubled their revenue per day in just a year and are 15% of the way to their BHAG.
How about you? Feeling stuck on how to grow revenue in your company? Not sure where to start documenting processes? It can be overwhelming to know if you’re taking the right steps and making the best decisions for the financial future of your business. But it shouldn’t be so hard to grow the business of your dreams.
I recommend finding a person who can break down complex financial concepts, like growing revenue, into easy-to-understand knowledge. If you have specific questions, let’s talk. I would love to discuss how we can help make your big vision for your company a reality.