Setting Employee Expectations
Forbes asked for transparent ways to set expectations for employees. Guess who was #1 of the 13 suggestions with the Role Scorecard? Read all 13 here.
Marketing
Do you know your Customer Acquisition Cost (CAC)?
In Silicon Valley a reasonable CAC can run to 30% of revenue generated from that customer. But your profit margin is likely not high enough to sustain anything near that number. Meanwhile there are people asking you to pay $3k/mo to manage your Facebook ads.
To calculate your CAC, take the amount of money, including any staff time, that you are spending on marketing. Then divide that dollar amount by the number of leads those marketing activities are generating. This will give a dollar amount per lead (Cost per Lead).
Then do the same thing with the number of those leads that converted to paying customers. This number will give you your customer acquisition cost (Cost per New Customer, or CAC) from the marketing activities you are doing.
Instead of bench marking your marketing spend against other businesses or listening to the marketing people tell you to spend 10% of your revenue on marketing, take a look at your profit from each new customer and make sure you are not spending more on your CAC than you are generating in profit.
Note: You can also use your CAC to figure out your most efficient marketing efforts so you know which ones to do more of and which to cut.
Money Numbers (aka Financials)
Do you have immediate access to your money numbers?
If not, why not?
They are your numbers!!!
I hope you are shocked that many business owners I talk with do not have immediate access to their financials. They have to “request” them from their bookkeeper or accountant, and then wait for them. But if you are one of those who is not shocked because you yourself do not have immediate access, you need to watch this.
New and Improved Website – with free resources
I updated SturdyCoaching.com. It’s cleaner, simpler, and clear. And it has free resources for you and your business. Check it out and click around while you’re here.
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Save the Dates
I’m working on the registration pages for the following events and they will be ready soon. In the meantime, please save the following dates on your calendar.
April 29, 12 Noon Pacific: Could you use a little extra cash in the bank?
Join me for The Power of One. Assuming you are starting with a 10% profit margin, I will show you how three 1% changes can increase your profit by 19% — without adding any more patients or customers and with no new spending.
May 3, 10 am Pacific/1 pm Eastern: Stop Leaving Money on the Table: Maximizing Revenue per Visit with Bob Kowalick, PT
May 12, 12 noon Pacific: Managing a Competitive Retirement Plan for Your Practice with Pankaj Dayal, CPFA, AIF