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Calculating Business Growth

Posted by 1st Garden Maintenance on May 26, 2016 at 8:08am in Business

This is reasonably simple, but most people don't think about it.

If you know how much you spend on advertising, find out how many leads that produced, then how many contracts. Now divide your advertising cost the number of contracts, and you now know how much you have to spend to get one contract.

If your figure is below £75, and you GPM is above 40% and your NPBT is above 20%, your doing well.

It is important to know what it costs to gain a new customer because you need this figure to be able to plan the growth of your business.

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