A fascinating discussion with Ratesh from Made to Measure reveals the precise calculations needed to scale a home improvement and fitted furniture business. Through detailed analysis, we uncover the exact numbers needed to achieve ambitious growth targets.
Current business overview:
- Combined home improvement and fitted furniture business
- Current turnover around £500,000
- Home improvements represent 2/3 of revenue
- Fitted furniture accounts for 1/3 of revenue
- Average home improvement project: £25,000
- Average fitted furniture project: £5,000
Breaking down growth requirements:
To achieve £1M turnover, the business needs specific numbers of jobs across both divisions
- Home Improvement Targets:
- Need 25 jobs annually
- £600,000 total revenue contribution
- Requires 125 quality leads (20% conversion rate)
- Average project value £25,000
- Fitted Furniture Targets:
- Need 80 jobs annually
- £400,000 total revenue contribution
- Requires 320 quality leads (25% conversion rate)
- Average project value £5,000
Marketing strategy requirements:
The business needs a total of 450 quality leads annually, which requires:
- Structured Google Ads campaigns focusing on:
- Local area targeting
- Specific home improvement keywords
- Fitted furniture searches
- Retargeting through Meta platforms
- Budget allocation recommendation:
- Primary focus on Google Ads (£1,000/day)
- Secondary Meta retargeting (£20/day)
- Total monthly marketing investment around £3,000+
Moving forward:
Success in scaling requires:
- Consistent marketing investment
- Focus on quality lead generation
- Clear tracking of conversion metrics
- Regular optimisation of campaigns
- Understanding of true customer acquisition costs
By implementing these calculations and maintaining focus on the core numbers, Made to Measure has a clear pathway to achieving their growth targets. The key lies in maintaining consistent marketing efforts and closely monitoring performance metrics.
___
👋 Never miss an update. Sign up for our weekly newsletter.
👉 See our Home & garden stories (case studies) to discover how we grow brands online.
👉 Subscribe to our YouTube channel.
👉 Follow our Grow with Evergreen podcast on Spotify, YouTube & Apple Podcasts.
👉 Register your interest in our Home & Garden Club
