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Knowing Your Numbers

How do you know if your business is working for you if you don’t know your numbers? As a landscaper first and foremost your concern is with the design and build of a clients garden/driveway etc. However as a business owner you need to know your numbers!

What are these numbers I hear you ask:

  1. Breakeven
  2. Average Order Value
  3. Number of Customers Served
  4. Number of Enquiries

Breakeven

What does it cost you each month to run your business?

Include: Rent, tool hire, materials, wages, vans, fuel, insurances, loans/credit cards, marketing spend, etc.

Add up everything you spend in a month (including VAT) and this figure will be your breakeven figure. This is the number you need to hit each and every month to keep your business running.

Average Order Value

We need to work out the average order a customer gives you. All customers are different so to work out this figure you need to do the following calculation:

Total Revenue (365 days) / Number of Orders (365 days) = Average Order Value

Eg. Total revenue (turnover) £300,000 / 100 orders = £3,000 Average Order Value

If we know this number we can work out how many more customer orders you need to reach your goals

Number of Customers Served

How many customers have you invoiced in one month? Simple as that.

Having looked at this number and the average order value, do you need more customers?

Join online to learn how to get more customers in various different ways.

Number of Enquiries

How many people make an enquiry about having their patio/driveway or garden transformed in a month?

How many of these become site visits?

How many site visits get sent a formal quote?

Once we begin to know these numbers we can see if your conversion needs work rather than increasing the number of enquiries. If you have 10 enquiries and only one sale coming back, there is a problem with your conversion.

We can help with all of this just become a member and gain access to all the business knowledge you need.

You need to know your numbers monthly to ensure your business stays on track. It’s a bit of work to start with but it pays off in the long term.

If you want more on knowing your numbers just become a member of The Landscapers Circle and you will find a whole bundle on this subject.