Contractor ROI - Return on Investment
Friday, August 15, 2008
It takes money to make money. It's a fact of life for small business owners. It's important to track how much you make from how much you are spending. To do so gives you what your return will be on the money invested. The Return on Investment, or ROI, is how you know you're making the right decisions for your business.There are lots of things you can track but the one you should focus on is the ROI for your marketing efforts. By knowing the numbers, you can tell how well the money you're spending is working. Whether you're spending money on a yellow pages ad, on a ConstructionDeal.com membership, or on a newspaper ad, you should be able to track the amount you're making based on what you're spending.
The hardest part is knowing where jobs are coming from. Was it a referral? A call from the phone book? From your website? Keep a log of all your calls. If you have a receptionist you should have that person keep a log. Emails and website requests are easy to track, but phone calls are harder. Make sure everyone asks as soon as possible how they found your business. If you can afford it, you should use a separate phone number for each major campaign. This allows you to track where traffic is coming from.
By keeping track, entering your log stats, and adding up your numbers each month and each year, you can see how much you're making from your marketing budget.
Register today and become a member - we can be a new source of job leads for you to track!
Labels: Accounting, Contractor Accounting
