It is very important to set up a method of tracking your results from the very beginning. A good notebook will be fine to start with. If you get into a habit of good record keeping: of which ads and head lines are working, tracking your sales, which location is pulling, and your costs you will start to see a clear picture of your business sales and cost. You will begin to manage your business and finances with more discipline.
To keep track you need to know how much you are spending daily and weekly and on what. Then you need to know how much you are taking in daily, weekly and monthly. Each campaign should have its own tracking number. For an example if you are doing ads- you need to keep track of the ad placement, the cost, the headline you used, the body, the cost and specific website you used. and the conversion rate. A good rule of thumb is you want to make back at least double your cost.
Mark everything down even it’s only one sale. Mark down anything you gave away as if it is a loss. If it is worth $10 you would say comp -$10. You also need to mark down the cost of production, materials, and marketing so that you can get a good idea of how much each item costs to produce.
If you are engaged in joint venture partnerships or affiliate marketing program you also need to mark down sales from these other sources whether or not you have your own product line or marketing someone else’s. Is there a monthly cost to any of this? If you do have your own product line how much are you paying out to your jv partners or affiliates also taking into consideration any advertising, website work, printing, marketing and set up costs.
You can keep records of where you are advertising on-line, the cost if any, what is the target audience, and how much do you have to spend to bring in your break even and to get back a profit (shooting for double what you spend. ) Whether you want to color code it and mark it with your specific numbers to make it clear for you, the more information that you can put down it will be better in the long run for you.
If you are doing a direct mail campaign the same methods apply. You need to know your printing costs, your mailing list costs, your advertising, graphic designer if any; mailing cost and all that applies. Again you need to mark down where, when, what headline, or ad, what changes if any, marking the changes with different tracking number.
All the time you have to be aware of the bottom line on what you are spending, and your bottom line of profit. If you don’t know that you will not know if you are profitable or you are losing your shirt. We are not in business to run at a loss. We want to make money. So no matter how big or small track those results, what you don’t know can really kill your business.
Katheryn Hoban is the publisher of R-U New to a Business newsletter which gives FREE practical tips for starting and running your own on-line and or off-line business, from start to finish from your home or office. The pitfalls, rewards, every-day tips and things that you need to succeed, freebies, and more. For signing up youwill receive a FREE report on STEPS ON HOW TO MANIFEST EXACTLY WHAT YOU WANT IN THIS LIFE. To subscribe send an e-mail to email@example.com