Which performance metrics do you track in your business?
When I ask a self-employed service professional, the answer is usually a version of the following:
- New client calls per week
- Sales meetings per week
- Billable hours per week
And so on depending on the specific profession or practice.
However, while most people are excellent at tracking metrics like these – there is a different metric that offers greater scope for growing your business. An indicator for checking real long-term growth.
It comes in two parts.
PART 1: Are you one of the top 25% of performers in your profession? Are you in this top tier among your peers and competitors?
PART 2: Are you one of the top 5% of performers in your profession? Are you one of the very best performers among your peers and competitors?
I work with self-employed service professionals – helping to grow their business by attracting more profitable clients – and we normally address these two questions by the second or third coaching session.
The answer is always enlightening for both of us.
Most people have no problem putting themselves in the top 25% of performers as they look at their qualifications, knowledge and competence.
However, they have a tougher time putting themselves in the top 5% – sometimes feeling they need further qualifications, more experience or to attend more conferences.
However, this perspective is almost always irrelevant when it comes to growing your business. Let me explain.
100% of the professionals I meet have typically run their own business for 12 months or more. They often worked in a similar capacity before that, just employed by someone else. Each person I have met (so far) has all the qualifications, knowledge and competence in their profession to do an excellent job for any client that comes their way – that is not in question.
Here’s the thing: when I say the top 25% or the top 5% – I mean in terms of reputation among your current and potential clients. The same clients who will decide if you are providing them with enough value before they hand you a strong fee and go on to recommend your services to someone else.
BEST RULE OF THUMB
How do you know when you are in the top 25% or the top 5% of performers in your profession?
A simple rule of thumb. There is a demand for your services above and beyond your peers and competitors.
Of course, service professions differ – but I find that the following is useful filter:
- If you have a waiting list in place for your services then you are in the top 25%
- If you are charging 20% – 200% (this depends on the regulation in your profession) above the majority of your peers AND you still have a waiting list – then you are in the top 5%.
Simple? Yes. The exact numbers that I present here are for illustration – the specifics for you and your profession come out in our private coaching conversation.
However, I have seen that when you take this client-centred view of your performance – when you let the market of your clients decide just how valuable your services are by supporting a waiting list – it transforms your attitude to what is possible with your business. It frees you up to experiment and make bold decisions.
It is like a “North Star” that guides you to a place where you can :
- Select the clients you WANT to work with.
- Charge a strong fee they are happy to provide
- Enjoy stretching your professional competence and knowledge and
- Make the time to enjoy the lifestyle that your business supports.
So, how about you? Where are you at the moment with your business or profession? In the top 25%, or the top 5%?
Where would you like to be?