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Statistics Project

You’ve just been introduced to a person who was not only very happy to meet you because you have the chops to take on a hot project that’s on his/her radar screen, but also has the authority to green-light your hire. Oh, happy day!

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You’re thrilled to do the card exchange as the newest prospect requires you to make contact in order that the both of you can talk specifics. You can almost taste the billable hours, but just how excited in the event you be? Statistical probability can enable you to put a dollar value on your own happiness quotient.

I found this intriguing formula that uses historical data from sales outcomes and statistical probability data, letting you calculate the expected price of the next prospect. As has no doubt been reflected in your experience, there exists a randomness to networking and Solopreneur consulting contracts. Inside your effort to bring much-desired predictability and financial security to your life, the Solopreneuer’s objective is always to control variables, positively impact outcomes, win projects and generate revenue.

Let’s say you’re talking to a prospective client about a project that you simply estimate is worth $10,000.00. The operative word is estimate. $10K will be the potential value, but it’s not the actual value until and unless you or someone else is awarded the project. If no person wins the project, then it’s worth zero.

The project’s worth is impacted by the possibilities of an excellent close. The following formula enables you to calculate the possible price of the prospect and the project through the entire various stages in the sales process.

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The steps in the sales process as well as the values assigned at each step during this process are derived from historical data offered by a large corporate sales force. To refine the accuracy, identify the steps within your usual sales process and record your profits success rates at each stage of your own sales process.

I. Identify the steps in your sales process:

* Invitation to satisfy and discuss the project

* Initial appointment / discussion of needs and benefits

* Verbal proposal / assessment of needs and benefits

* Invitation to submit written proposal

II. Determine the odds of a successful outcome at each step:

* Invitation to discuss project 2% success

* Initial appointment / discussion of needs 8% success

* Verbal proposal/ assessment of needs and benefits 25% success

* Invitation to submit written proposal 65% success

III. Calculate the dollar value at each point of the sale for any proposed $10K project

* Invitation to go over project $ 200.00

* Initial appointment / discussion of needs $ 800.00

* Verbal proposal / assessment of needs and benefits $2,500.00

* Invitation to submit written proposal $6,500.00

What do the statistics mean? Should you be invited to meet with all the prospect, there exists a 2% possibility of winning the contract at this point. If in this first appointment the prospect launches a conversation in regards to what would or might be needed in terms of project work, you bump approximately an 8% possibility of winning the contract. The dollar values inform you how much the sales process is “worth” at every step that leads up to signing the agreement, if you are able to accomplish this.

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If inside the conversation, or in a follow-up conversation or email, there is a discussion of project specifics, including its purpose, needs and benefits, and also the talk centers round the suitability of your rohnfp and expertise to complete the job, then there is a 25% probability that you may be awarded the project. If you are invited to submit a written proposal, your opportunity of signing the contract advances to 65%.

The key to customizing the effects probability formula for your business is keeping detailed records of sales presentations by which to compile your statistics. Here is yet another reason to document your company transactions so that reliable data will likely be there to guide your company planning.

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