💰 Know Your Numbers So Your Business Doesn't Suck

Hey friend,

I want to help you run a business that doesn’t suck.

Don’t take offense.

Most businesses suck.

But businesses don’t suck because the owner sucks, and what you sell doesn’t suck.

20% of small businesses fail within the first year, and 50% fail by year 5. By the tenth year, around 70% of businesses have failed…

Why?

According to the SBA, most fail due to poor operations and management, NOT the product.

Also… Only 9% of businesses ever hit $1M in revenue.

Why?

The real growth killers are poor operations and a lack of scalable systems, not bad products.

What else?

Well, 82% of businesses fail due to cash flow issues. It’s due to poor planning, not a lack of market demand for their product.

Lastly, 77% of business owners admit they need better skills to grow. They are lacking in leadership and operations.

So, again, most businesses suck.

Most business owners didn’t start a business, so they could geek out on KPIs, run operations, and build systems.

I want to help you run a business that doesn’t suck.

So today, I introduce “Build a business that doesn’t suck: Thing #1 - Know Your Numbers”

Damn, I am hitting you with “know your numbers,” and there are so many freaking numbers to know, so where do we start?

You’re right; there are a lot of numbers to know. But I won’t open the entire can of worms. Let’s start small.

I am going to start small with ONE THING…

Know your profit.

Eh, let’s go one step deeper; know the profit paid to owner. The profit paid to the owner of a business is typically referred to as an owner’s draw or distribution.

Let’s get real for a second; you started a business to get paid. Don’t live in entrepreneurial poverty. Pay yourself and track it.

Just to take this to the 101 level.

• You take in cash.
• You pay expenses (employees, rent, etc.).
• You pay yourself a salary (most likely)
• What’s left is profit.
• Profit can go back into the business (new equipment, ads, etc.)
• What doesn’t go back to the business, but instead, goes into your pocket is a… distribution.

Your salary + distribution = money you get to take home. Start tracking it.

Here’s A Simple Spreadsheet To Help

Don’t use your CPA or bookkeeper. Quit being lazy.

Look at your personal checking account. How much money did you transfer from your business to your personal account this month?

Why track it?

A growing business should grow your personal income.

If your business if growing and you personal income is shrinking, you’re building something you don’t want.

Better to quit now and go get a job.

Try harder,

JM
P.S. - If you have trouble accessing the file, reply and let me know.