Year-end is the perfect time to review your business metrics in order to analyze the areas that are running smoothly versus the areas that need improvement. 

Two such metrics to examine are sell cycles and close rates in each of your markets. For starters, this will give you an idea of whether you can squeeze in completing additional business before the end of the year. If your sell cycle in a particular market is six weeks or less and has a high close rate, then you’ll not only be able to book the work before year-end, but you should also be able to finish it and see payment before December 31. 

As you look to book last-minute business, don’t fret if you notice a disparity in close rates in different markets. Focus solely on the areas that are most successful and will most likely result in additional income on the books. 

Then in the new year, take the time to determine why some of your markets have longer sell cycles and/or lower close rates than others. A common culprit for the discrepancies is that every market behaves differently. Just because a market adjacent to one of your successful markets seems similar; it’s not – and those in it certainly do not see themselves as the same as others.  

Here’s an example of what we mean by this. Say your business typically sells to doctor’s offices. And, you’re so successful at it, that your close rate is easily 80 per cent so you decide to start selling your products to physiotherapist offices as well. But much to your despair, your close rate in that market stagnates at a mere 20 per cent.  

The reason for this is that you can’t go into a new market – no matter how similar it may seem – with the same sales approach, tactics and materials as the previous market. The new audience needs to be appropriately engaged in a way that speaks to them.  

Taking the time to properly prepare to enter a new market does lengthen your sales cycle – but over time it increases your close rate (as the sales cycle timeline shrinks) and you will end up creating another successful revenue stream.

Share this

Latest Insights

Recent posts from our blog

How to plan for seasonal variances in your cash flow

Have you noticed unexpected seasonal variances in your company’s cash flow? If your business is seasonally-based (a lawn care or snow removal company, for example), it’s normal for your cash flow to vary depending on the time of year. Unfortunately, many companies who shouldn’t be affected by the seasons still experience peaks and valleys in […]

Organizational growth and restructuring: Is your business ready to take the next steps?

Are you planning to take your business to the next level? Before you start growing your company, you need to ensure that your organizational structure is prepped for this major shift. Don’t just jump in head first – make sure you follow our key prep tips to keep your growth sustainable and successful.   3 […]

Do you have a file you need to send to us? Would you like to make a payement?