Do you know how many leads you need coming in weekly to hit your year-end income target? Do you know how big a staff you need to handle the paperwork associated with you proposals and projects?

You should.

That's what is meant by "Managing by the numbers."

If you track performance closely, you will realize that your business' performance is very predictable. Its progress can be boiled down to a handful of key measurables.

If you'll answer the following questions, relying on gut instinct alone, you can probably develop a feel for the targets you need to be hitting.

1. How much money do you need to cover your overhead and living expenses this year?

2. What's your average profit per job?

3. Now, calculate the number of jobs do you need run this year to cover your overhead and living expenses.

4. How many proposals do you have to send out to land a typical job?

5. Multiple the required number of jobs by the number of proposals per job.

6. What percentage of your leads (opportunities) justify a proposal?

7. Multiple the number of proposals required by the number of leads you need per proposal. This is the number of leads you need to hit you minimum income target.