Advanced Track: “Strategy Suite”

Pass this quiz to unlock your bonus tips!

Marketing ROI Tool

What This Tool Does

ROI, or Return on Investment, is used to find out if your marketing efforts are paying off. You’ll need to know how much money you spent on a marketing campaign and how much money that campaign earned for your business. Less than 100% → you lost money 100% → you broke even More than 100% → you made money A good marketing goal is at least 500% ROI, or five times what you spent.

Why It Matters

• ROI shows how much return you get for every dollar spent
• Cost per Lead helps evaluate lead efficiency
• Revenue per Lead helps forecast future sales and assess lead quality

Marketing ROI 

Use the Marketing ROI Tool to answer the questions below.

You create a Facebook marketing campaign that costs $1,500 over one month. The campaign sends people to a specific page on your website so you can track activity.

The page promotes three high-end Valentine’s Day packages. Visitors must select a package and enter a delivery address to see their total price.

Campaign results:

• 25 people visit the page

• 15 people interact with pricing (these are your leads)

• 5 customers book

• Total sales: $3,800

(Answer: 153%)

(Answer: 15)

(Answer: $100)

(Answer: $253)

Forecasting Tool

What This Tool Does

As your business grows, it’s time to take on more expenses. This might include hiring help, moving into a commercial space, or purchasing a truck or van.

This tool uses last year’s actual numbers from your income statement. Once entered, along with new overhead expenses, it shows how much revenue is needed to cover those expenses.

You can also adjust your profit, or zero it out, to see your break-even point.

Please open the forecasting tool.

Using Last Year’s Numbers

• Revenue: $157,000
• Direct Costs: $53,380
• Overhead: $29,550
• Profit: $74,070

You’ve been working out of your basement for 10 years and want to move into a commercial workshop.

• Rent: $1,500/month
  
• NNN fees: $300/month
  
• Insurance: $750/year

(Answer: $22,350)

(Answer: $78,636)

(Answer: $154,394)

(Answer: $190,864)

Brace Yourself, two more sets of quizzes to go!

Forecasting Quiz 2: Buying a Truck

Your accountant points out that you spent $5,000 last year on truck rentals. Since you work alone, a truck is essential for transporting built décor.

You find a used truck for $25,000, with $1,200/year in insurance.

Last year’s numbers:

• Revenue: $125,000
• Direct costs: $23,750
• Overhead: $13,250
• Profit before taxes: $88,000

This is less than $3,000 per month in additional sales if you want to pay off the truck in one year.

Answer: $157,346

Doing some quick math, you realize this is less than $3,000 per month in additional sales if you want to pay off the van in one year.

Calculate a Shop Rate

What This Tool Does

This tool shows the hourly cost of running your shop or workspace. It represents how much money your business needs to earn each hour just to cover shop expenses and profit.

If you have employees, you can include their labor and related expenses.

This analysis is what led me to close my shop after three years and move the business back home.

Shop Rate Quiz

Shop Rate Quiz

Using the workshop numbers (rent $1,500/month, NNN $300/month, insurance $750/year):

(Answer: $11)

Employee Scenario

You consider hiring a full-time employee to assist in the shop and help with grab-and-go orders and builds.

You budget $55,000 per year to cover wages and employment taxes.

Follow-Up Questions

Answer:  $39/hour

Answer: $274,197

Answer:  $83,333