Magic Numbers
As the CEO of your Recruitment or Search Business, there are three critical numbers you need to track if you want to make growth easier and more predictable…
1. Average LTV – This is the average lifetime value of clients you bring into your business. Too many Recruitment and Search Business Owners focus on the importance of one individual sale rather than what each client is worth throughout your business. You should constantly be looking for ways to increase this, but you can't improve it if you don't know what it is in the first place.
2. Cost Per Acquisition – Do you know how much it costs to acquire each client? You take the cost of your marketing, phone calls, etc., software, staff, delivery, time spent, and any other financials that go into winning a new client, and you have your acquisition cost. This number, in relation to the Average LTV, determines your business's profitability. Business growth is simple, you invest "X" (cost per acquisition) to get a return of "Y" (average LTV), and ideally, "Y" is substantially higher than "X." Get good at this, and you can predictably invest more of "X" to get more of "Y" and build wealth in your business. Unfortunately, most business owners don't track this and have no predictable process for bringing in profitable clients.
3. Buy Back period – This is how long it takes to recover the cost of acquiring the client. For example, let's say your LTV = 100K, it costs you £10K to win a new client, but it takes 60 days to collect the first 10K off that client. So your buyback period would be 60 days. This is essentially how long it takes you to break even on your cost per acquisition. Everything after this is profit. Not tracking this correctly can cause significant cash flow issues even if you would otherwise be profitable.
If you want help getting to grips with these numbers and turning your business into a predictable cash-producing machine, here are four ways I can help…
Join "Make More Placements for Recruitment and Search Business Owners" - It's our new Facebook community specifically for Recruitment and Search Business Owners. Every week we host a free training centered around what you need to do to make more placements and scale your business. — Join Here
Watch the free training - We put together an online workshop that reveals "5 Secrets To Taking Your Recruitment or Search Business From 6 to 7 Figures in Revenue...Without working yourself into an early grave" - Watch it here
Get the 'Make More Placements' Book - We've put together a book that outlines the Discover the quick, dirty, and uncensored secrets top-performing Recruitment and Search Business Owners use to make more placements, for higher fees with less work and fewer headaches… - Get it here
Work with us privately - If you'd like to work with us privately to scale your Recruitment or Search Business click the following link, fill out the short application form, and someone will be in touch - Apply here
Speak to you soon,
Until then,
Take care, take action, and be relentless...
