Introduction:
This guide will walk you through setting up a battle plan for service companies like maid services, pest control, and pool maintenance—any business operating on a subscription model with monthly recurring revenue (MRR). You'll learn how to set goals, account for costs, track churn, and manage your revenue growth.
Steps to Set Up Your Battle Plan for MRR:
Create a New Battle Plan:
Start by naming your plan. For example, you can call it "Test Plan."
Decide which goal you want to track. In this case, select Increase Monthly Recurring Revenue (MRR) as your goal.
Set Your Goal Dates:
Choose a start date (e.g., January 1st).
Set the deadline for your goal (e.g., end of the year).
Enter Your Current MRR:
Input your current monthly recurring revenue. For example, if you're starting at $36,000, enter that number.
Set your goal MRR. For instance, you might want to increase it to $46,000 by year-end.
Specify Monthly Revenue Per Customer:
Enter your monthly revenue per customer. In this example, it might be $399.
Advanced Settings (Optional):
Cost to Service a Customer: If you have a fixed cost per service, such as chemicals for pest control or lawn treatment, enter that cost here. Otherwise, most companies like maid services can leave this at $0.
Monthly Churn: Churn represents the percentage of customers leaving the subscription. Estimate your churn rate, such as 4%, to account for customer turnover.
Set Lead Tracking and Conversion:
Leads: Select leads as the metric to track.
Leads-to-Customer Conversion: Enter how many leads are required to convert one customer. For example, you may need 5 leads to secure one customer.
Close Time: Specify whether it takes longer than a month to close a deal. In this example, select No.
Review the Results:
Based on your inputs, the system will calculate the leads and customers needed to reach your goal. For instance, it might show that you need 369 leads and 74 new customers to increase your MRR to the target $46,000.
Note that this system does not generate a revenue curve since MRR is designed to steadily increase without seasonality.
Tracking in Marching Orders:
Once you’ve set up your battle plan, you can track your progress in the Marching Orders section.
Include your total MRR for the month, your overall revenue (including one-off services like deep cleans), and your churn rate. This tracking will help you monitor how you're pacing against your goal.
Key Takeaways:
MRR growth is the main focus of the battle plan, with no seasonality or revenue curve.
Always account for churn and ensure you have enough leads to meet your MRR goal.
Use advanced settings if you have specific service costs, but most MRR businesses won’t need this.