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Statistics Project

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

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You’re thrilled to do the credit card exchange as the newest prospect asks you to make contact so 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 assist you to put a dollar value on your own happiness quotient.

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

Let’s say you’re speaking to a potential client regarding a project that you simply estimate is worth $10,000.00. The operative word is estimate. $10K is the potential value, but it’s not the true value until and unless you or another person is awarded the project. If no person wins the project, then it’s worth zero.

The project’s worth is influenced by the probability of a successful close. The subsequent formula lets you calculate the possible worth of the prospect as well as the project throughout the various stages from the sales process.

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Both the steps inside the sales process as well as the values assigned at each step during this process are based on historical data provided by a large corporate sales force. To refine the precision, identify the steps inside your usual sales process and record the sales success rates at each stage of your own sales process.

I. Identify the steps within your sales process:

* Invitation to meet 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 probability of an excellent outcome at every step:

* Invitation to talk about 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 each and every point in the sale for a proposed $10K project

* Invitation to talk about 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 exactly do the statistics mean? If you are invited to satisfy using the prospect, there exists a 2% chance of winning the agreement at that point. If in that first appointment the prospect launches a conversation in regards to what would or could be needed when it comes to project work, you bump up to an 8% chance of winning the contract. The dollar values inform you how much the sales process is “worth” at each step that leads approximately signing the agreement, if you can to do so.

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If in the conversation, or in a follow-up conversation or email, there exists a discussion of project specifics, such as its purpose, needs and benefits, as well as the talk centers across the suitability of your own rohnfp and expertise to complete the job, then there is a 25% probability that you may be awarded the project. Should you be invited to submit a written proposal, your chance of signing the contract advances to 65%.

The key to customizing the outcomes probability formula for your business is keeping detailed records of sales presentations from which to compile your statistics. Here is an additional reason to document your business transactions in order that reliable data will be there to steer your business planning.

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