‘Leads to profit’ calculator

What is it?

This is a calculator that you can use to calculate how many leads you need to generate each week to achieve your desired profit over the next 12 months. Just put your numbers in and by the end of it you will see how many leads you need to achieve the profit you want.

There is an explanation next to each number required to help you to understand what number we are asking for and how to work it out.

Why is this important?

By working this out, it will give you clarity on what you need to be doing on a weekly basis in order to achieve your desired profit, and therefore enable you to monitor whether you are on track or not. Also by highlighting the direct impact of the numbers of weekly leads, your sales conversion rate, the amount of retained business and your business costs on what you can ultimately pay yourself over the year, you will gain insight into areas for improvement and the motivation to go out there and make it happen!

The challenge:

Many small business owners do find getting to grips with the numbers in their business challenging. If you find inputting your numbers challenging, then either get in touch or outline your challenges in the notes box towards the bottom of this page.

  • Your Input

  • Net profit is the amount of money you want the business to have left over at the end of this year, after all of the costs of providing your services and the costs of running the business have been taken away (i.e. all costs associated with directly delivering the service or goods plus all the costs you would have to pay even if the business didn't sell anyting such as office rent, phones, stationary, marketing, administration, accountancy etc).

  • Your average sale value is the total value of goods or services you sold last year, divided by the total number of sales last year. E.g. If you billed £100,000 last year and you did a total of 100 sales, your average sale value is £1,000.00

  • Gross profit % is the % of the total sale value that is left after you take away the costs directly associated with providing the goods or services to your customers. E.g. if you sell Hamster cages for £100 each and they cost you £70 to buy, your gross profit on the sale is £30 and your % margin is 30%, or if you sell cleaning services at £12 per hour, you pay your cleaners £8 per hour, and they use approximately £1 of cleaning materials per hour, your gross profit is £3, which is 25% of £12. Please enter a value less than or equal to 100.

    Please enter a number less than or equal to 100.
  • What percentage of the number of people you come into contact with who are interested in buying what you provide ultimately end up buying from you? E.g. If you sell insurance, if for every 10 people who call or walk into your office and are looking to buy insurance, 8 of them ultimately end up buying from you, then your % conversion rate is 80%. Please enter a value less than or equal to 100.
    Please enter a number less than or equal to 100.
  • How many times does the average customer buy from you in the year? E.g. If 100 different people buy from you in the year and you make 200 sales in the year, your average number of sales per customer is 2.

  • How many of the customers who are going to buy from you this year are likely to have bought from you in previous years (these customers are therefore not new leads and the end leads calculation will give you the number of new leads needed). Note: If you want returning customers to be included in the number of leads you need per week, just enter 0 here and the final number of leads will be the total number of sales leads including new and repeat business.

  • What would it cost you to run the business even if you didn't sell anything e.g. office costs, stationary, phones, marketing etc

  • Results

  • Areas to improve on

  • Now you have completed this calculator why not play around with some of the inputs and see how changing the metrics can impact the number of leads you need to get into the business?

    Why not try - increasing average sale value - increasing the conversion % - reducing the overhead costs - increasing the average number of sales per customer - increasing the gross profit margin.

    Its amazing the impact this can have. Have a think about how you might be able to achieve these improvements in your business. We always find it helpful to make a note in order to cement any learning.

    Why not note down below what insight have you gained from this and what action you will take as a result of that insight. Also if you have any feedback on the tool please do note it here.

  • Get a hard copy of your outputs

    If you would like us to send you a hard copy of your calculations and your notes please enter first name and your email address and click submit.

Where to next?

If you found this useful then it may be worth considering our Next Level Business Club where we help people to set their metric targets and then hold them accountable to achieving them.

Or get in touch to discuss the other ways in which we could help you with this by emailing info@engineeringbusinessgrowth.com or calling 0203 1891287.

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