Do You Know This About Your Business?

What is main reason that the statistics are against you when starting a business? You’ve heard those right? Nine out of 10 businesses will fail in the first year and another nine out of 10 in the following five years.

I bet that just makes you so excited to start one right? You may be thinking or rethinking your decision to own your own business at this point.

I’m here as always, to cut to the chase and tell you what to do to remain in business and actually profit. Did you know that most businesses don’t have even three months worth of cash available? Did you know that is considered by evaluation, “a business in trouble that will soon be out of business?”

My approach is simple and you can execute this by simply knowing your numbers. A business owner MUST know these critical six factors to succeed. I don’t mean, go look them up each time, but rather, you must flatout know these instantly at any time. Here they are:

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  1. Cash In – the cash flow coming in through revenues, partnerships, joint ventures, etc.
  2. Cash Out – the cash flow out for expenses, salaries, partnerships, etc.
  3. Cost To Acquire – the dollar amount it costs to acquire a new client.
  4. Initial Client Value – the first time purchase value of a new client. How much they will spend and be worth to the company.
  5. Lifetime Client Value – the overall lifetime purchase value of that client, including referrals.
  6. ROI – the return on investment for your advertising and marketing expenses.

If I were to ask you these questions and you don’t know the answer instantaneously, there is a high percentage chance you will be out of business before next year.

Your job as the business owner is to know these numbers, understand the strategies that are necessary to execute to improve them and grow your business.

It is time to sit down and evaluate your numbers. Get comfortable with them regardless of how they look at this point. Remember, the success of your business today is only a reflection of the actions you have taken up to this point. As we make changes and implement more effective strategic marketing and innovating, your business will transform and these silly, yet important numbers will be the past.

Most businesses are afraid, embarrassed or simply don’t know how to evaluate and use what the numbers tell. If you need help, please reach out to me. I am here to help you generate a more profitable company.

If you know anyone who can benefit from this post, please share it. Make sure to like my Facebook page and join the community. Let me know how I can help.

| Joe Rare | Wedding Booking System | Family Above All

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