£500k Home Improvement Business Wants to Double in 12 Months

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.

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