The other day I was explaining how you need to be able to count it, weigh it or measure it.
When my clients say “We really need to start making some money around here...”
Exactly nothing is about to change.
The simple reason is there’s nothing to weigh, measure or count.
They do this in hockey, baseball, football, soccer, and all other sports during tryouts.
They count how many points (TD’s, home runs, base hits, goals, etc) you got.
They measure how tall, fast and how high you can jump.
They most certainly weigh you.
Every year when basketball tryouts started my Dad would remind me:
“Kid, when you’re small you have to prove you can play.
When your big you have to prove you can’t play.
Go show them you belong and don’t take a backward step no matter how big they are.”
I wish he would have told me don't drive to the inside against those big dudes because they will break your nose!
I love my sideways nose...
*Twitch*
In all seriousness, he’s such a natural mentor... I was a lucky kid and I am still lucky to be able to call him today....and I do about 10 times per day!
Anyway...
As far as measuring goes... expenses have a way of coming up to revenues.
It’s up there with the 7 wonders of the world like The Great Wall of China, Taj Mahal, The Colosseum, etc...
I’m a sales and marketing expert but as previously mentioned I’ve studied accounting and business finance over the last twenty years.
I just don't have the ability to read financials but REALLY studying where the numbers come from, what they mean and how to quickly impact them profitably for a coaching client. That enables me to make any business profitable in
90 days; or, to take any business to the next level of profitability in 90 days...which is super exciting stuff!
Your ONE THING is:
Measuring absolute numbers is mandatory (but almost no one does it) but measuring percentages is the next level.
It’s significantly more involved than this but here’s a very basic example of what I mean.
Many years I used to do traditional internet marketing.
I'd drive traffic to a landing page and plugged hundreds of people into my membership sites for $97 per month. When I went from 5% opt into 7% I was a pretty happy camper.
When your client goes from 10% to 12% margins... it doesn’t look that impressive but those 2 points sure can add up on their income statement (profit/loss).
20% to 26% on sales conversions appears to be a moderately impressive 6% gain.
40% show-up rate to your live event to 56% is hard to do but possible follow my instruction.
Here’s what you may or may not have realized above.
When I went from 5% to 7% opt-ins on my landing page... that was a 40% improvement.
10% to 12% is not a 2 percent increase... it’s a 20% increase in your margins (see how my fees are paid for by the growth that I get for you??).
20% to 26% is not 6%... it’s a 30% improvement on your sales conversions.
For those of you that find this obvious and all my accountants reading...
“Common sizing” is the second most powerful thing you can do to your income statement. Maybe we will talk about the first next time...
You heard it here first.
