If you are struggling to know whether or not you are making money at the end of the month then you absolutely MUST know your break-even point. Clay Clark breaks down the necessity of knowing and tracking all of your variable, fixed and hidden expenses as well as all of your sources of income.
Determine Your Weekly Break-Even and Goal Achievement Numbers
See – Boom – 13 Proven Steps to Business Success – Page 187-194
NOTABLE QUOTABLE – “Hope deferred makes the heart sick, but a longing fulfilled is a tree of life.” – Proverbs 13:12 (The Bible)
What testing for the center of the business coach universe and the thrive 15.Com world headquarters? Alright I’ll go back to the conversation from any of you who have heard about the drive time, so you found us an itunes or you found us on stitcher, or maybe a friend referred you to us for the first time. Welcome to the broadcast. It’s the! What we doing the halftime shows we provide you with business school without the bs and I’m excited cuz I’m at marshall morris lead the way on today’s topic:we are, marshall morrissey, the best selling easy to co-author the best selling amazon bestseller called start here against the amazon bestseller called start here, which you can get today for free. You can download it today by sibley, going to thrive time show.Com, and you can download the book there but marshall before we get going to tell us why it is important that we determine our weekly break even and goal achievement numbers and not baby. Eighth yearly, galt I believe that business is a lot like sport. Business is a lot like war and between sport and war. You got to keep score in. So, if you’re not keeping score, then how do you know whether or not you’re winning or losing how, whether you’re, profitable or losing money you got to have some type of identifier for where you’re at in the business hour of the 7 habits of highly effective people?
Is that begin with the end in mind, you’re saying, keep score:how do those to relate? How do you keep score while, beginning with the end of mine, hasn’t relate to the business owners? Well, if you are actually keeping score in your business, you got to identify. What is that angle? How many points do you need to score? How many sales do you need to do? How many widgets do you need to sell? How many services do you need to book in order to get to your goal? So your break-even point is the point in your business where you are bringing in just enough business coach money so that you’re not earning a profit. Okay, you’re, not an e at the end of the month, you’re, not bringing home any money, but at the same time you’ve broken. Even you are making enough money to cover all of your hard cause, you’re covering all of your expenses, so you’re, not making money you’re, not losing money to number one. You’ve got to know how many deals you need to book in order to break. Even the second number that you need to know is based on your goals, your s6 goals. How much money do you need to make in order to achieve your goals? Can you break down with the f6 goals? Are they made the first time, or maybe a refresher on what does fundamentally believe that your life isn’t just finances, but your life can be broken up at least six apps. There is a secret which I may be on a future show will go over there, so we’ve got your faith to faith the next family, friendships, fitness finances, and then the sixth one that doctor scene he kind of spring mclea’s life made it made him partaken elevate is fun to make goals for yourself today for the following six areas. That goes for your faith, make goals for your family finances, fitness, friendship and fun after you do that now you kind of have a a goal here.
You know it’s okay. This is what I have to hit per week. To achieve my goals to fund the life, I want to live now:jack welch, the ceo of ge, who grew the cowboy by 4000 % during his tenure he says:you’ve got to eat while you dream marshall lee says:you’ve got to deliver on short-range commitments, marshall. Well, you develop a long-range strategy and vision and implement the success of doing both walking and chewing gum. If you will getting it done in the short-range and delivering a long-range planning and executing on that, so marshall actually remember what we need to write down on a whiteboard interoffice, the total number of deals we need to break. Even why do we have to do that? What what? How does that keep us focused on the short-term? While we also focus on the long-term. There’s two part about this action item that are important number one. Is you need to know on a business coach weekly basis? How many deals that you need in order to break even that’s the first part. You need to know what that number is. It has to be a very specific number. The second thing is, you got to put it on a whiteboard ask to be visual. You have to be reminded of it. Everybody in your office needs to be reminded of it on a weekly basis, because until you hit that goal until you hit that number you’re going to lose money because the office is like humiliated and it’s depressing and I just put on board I didn’t do it again. You know it’s like not i, don’t set goals. You know i, like marshalls metaphor, for the scoreboard. Now one thing that is super important when you have a scoreboard, I actually have to look at it. So that would be my answer to you. Mister over there better deep thoughts on your daily to-do list that you carry around the number of deals. You need per week to break even care that to-do list around to do list in marshall. Why do you have to carry around and not just on the whiteboard, because your to-do list is going to go with you everywhere that you go and if you don’t have it to do list created to-do list, you need a to-do list and carrying it around, because this is going to be the constant reminder, you’re going to see the action items in the action items.
If you execute upon those daily, then you will ultimately get back or seem like business coach time management app broke, so many awesome, apps out there bro it’s like i, don’t want to have a cup of this man only can find that paper. You know you got to do that because all of the most successful people in the world create a to-do list grab it like i, don’t really care that successful people-and this is probably not a good radio show for you, nice, okay, so the next move is you want to write down on a whiteboard in your office, the number of deals per week. You need to achieve your goals. That should be the big kahuna. Why? Who? What? Why? Are you you doing? All of this, why are you embarking on the crazy journey of owning your own business? Why are you, and so you got to be motivated by something? What are those big goals in your life that you are working with the in-person workshops? Yeah, it’s really not fun. Pretty, exciting marshall. To know that we don’t have to go to nebraska anymore, but south dakota. Is it not fun to not go to san diego? Was it not been for me i, just I’m, so tired of traveling all the time, it’s fun to see them all over the world attending our workshops, and you know why that is come to fruition. Of course you do because we’re part of the triumvirate because we talked about it all the time, because it’s constantly a reminder we talked about all the meetings were constantly growing, the podcast, where the goal is to mentor how many human marshall millions of minions dementor millions read. My goal is to mentor millions, but not to mentor minions, and he says:excuse me, you won’t do your to-do list, you don’t show up on time for client meetings right to you. Don’t have the tenacity needed to get anything done to mentor people, we have to babysit there’s real business owners out there like delricht I got a super win that maybe so delric this week, it’s awesome they’ve been hitting their financial goals, they told me on it would have been wednesday of this week.
They said for the very very or wednesday of last week. They said for the first time we are completely independent of our business, completely hundred percent and a hundred percent independent of our business. We have all of the time freedom to go with our financial freedom, and now we can reinvest. Thank you so much, and that is like an awesome person to win for me and I’m so excited for them big, shout out to them, because they’ve been working towards this for years, not months but years going to ride that emotional highs are going to the break. We come back more about breaking even in goal achievement station to claim your tickets to the drive time show today, a directed business workshop for free. All you have to do is to subscribe to the drive time, show on itunes leaving of ejected review and send as confirmation and then pull it right time, show.Com to claim your star in the national star registry. We can’t help you on the score. Radio, if you want to claim your star and the national registry be heard that commercial claim your star national registry, it’s a great way to say:i love you for that commercial. Are we talking about like start like in space a star? This is the first time I know you can claim your star and give it as a gift and i. Don’t know if you gave it to me, I’d be pissed. If you like, I did i, don’t need money to the human fund. What is the human business coach supposed to determining your weekly break even in goal achievement numbers aren’t. So here are the action items you have to do. If you want to become successful, you have to know your numbers. You got to know your number as, if you’re going to be, you got to pop them off. You got to you got to ride to the store, so you got to write a whiteboard in your office.
Step 1 write it down on the whiteboard in your office number of bill’s. You need per week to break even even funnier, and the clipboard write down how many deals you need per week to break even anything with the board, then on the whiteboard and the clipboard, you want to write down the number of bills. You need to achieve your financial goals. Your financial goals do I always have to be the adult here, so you need to achieve your financial goals on both the clipboard and the whiteboard. If you don’t obsess about it, it’s not going to happen now. Here’s the part that jump! No one wants to do you got to create a list of all the expenses related to delivering your product or service is called the cost of goods trip. Can you list out just a couple or few of the cost of goods that we put her on today show notes for the materials that go into building out your product right? You got the cost of labor cost of driving if you’re business coach delivering. If it’s a service or your delivery in your products got insurance credit card fees, taxes all that kind of stuff. You got to list all that stuff out. You have to literally take the time and list all of the stuff out or it’s kind of pointless. If you don’t have accurate numbers, it’s super important. You do it for the past 90 days, it’s so it’s so important have to do that. If you don’t do what’s going to happen, to have a rosy perspective of what your expenses are and I can’t tell you how many times I’ve sat down with the business ownership, where they have thought their cost for a certain thing, and the costs are a lot more I mean dramatically more you’re, not texting and credit card fees do not practice on factory in insurances.
They’re, not factory in the lawsuit, is extremely rare that someone would be factoring in the correct cost if they haven’t actually done we’re trying to do right now, if you’re not going to stumble your way into the shop actually have to sit down. Think about it, use your brain power and list out these expenses list of all the pics expenses for the past 90 days. Okay, don’t be like your printing costs, releasing costs your electrical bills, your water bills, your phone bills, internet bills and insurance builders lot of things that are ongoing expenses. But if you’re not careful about your just not going to factor those in marshall, you sat down with the example you set down the chiropractor and you work tried want to say dude seriously, probably what 8 hours 9 business coach hours helping those folks if you were to go through 12, 12 hours and you’re working through all the expenses and where they shocked I mean. Were you shocked when they show who was shocked when you finally turn in all the expenses, I was shocked and you can’t you can’t prepare for that. If you’ve never look at the numbers in that great of detail before, because you end up finding all of these different things that the card is being charged for that you didn’t know about, but you don’t find those unless you go line item by line item and look exactly what is coming out from the bank and then then you get to ask a question who put that on the card was charging that in without fail every time. I’ve done this with a client, you will typically find it least 10 line items on there where you’re like oh.
No, this is what is sinking our ship. We can’t be doing that anymore. I, just I want to encourage all of the listeners to take the time to create a list of all the expenses related to deliver your products or services for the past, 90 create a list of all the fist of a fixed expenses for the past 90 days. It is so important that you do this and then, when you button once you’ve done this, you need to work with your coach. To create performance performing is nothing but a gates. Is it a projection of future financial performance based upon known variables and so you’re going to know the profit per customer as a result of making this you’re going to know the number of deals you need to make per week to break even you’re going to know the number of deals per week? You need to achieve your goals, but if you don’t do this, you’re never going to know, and it’s going it’s going to cause you. This is marshall getting business coach frustrated. I want to make this visual because we talked about fixed expenses, heart expenses. What I want to make this visual and give an example here so every single month you have your fixed expenses every month, which is a bucket okay. It is your bucket, and so every single job that you do. You have a cup or a glass okay, and you have to understand what it means to break break. Even point is how many times do I need to fill up my glass of prophet okay, my glasses, my prophet. How many times do I need to take that and dump it into the bucket in order to get that water level to come to the top of the bucket? How big is that, if you have a bigger bucket you’re going to need to fill up that bucket many times with that glass, and so once you get into the habit of understanding that your profit per customer’s goes towards your monthly fixed cost every single month, you will become successful.
You will understand your numbers. You will know what it means to break even on your business, to the other reason. To build off of that. This is super. Important is not only are you going to know your number so you’re going to be able to get your finances squared away, but this is also the first steps to scaling your business. You can use these numbers to then create key performance indicators to hold your team members accountable to that actually grow your business, and you can’t do that. If you don’t know these numbers are no place to start. I want to bring the room down a little bit. Okay, I do that. I know that our listeners, our listeners, are very diligent people, yes, that are willing to delay gratification, super diligent and to block out the time needed to get things done very consistent, very proactive I know that our business coaching clients we had throughout the years. All of them execute the reaction out of business coach extraordinary people out there who are listening. Who knows somebody who doesn’t find the time to get action item so friend of a friend? We have not met personally, but the kind of things you’ve heard that friend of a friend have struggled with, as it relates to finding the time to make the performa. What I see a lot is that people decide hey I’m, going to try to tackle this during the middle of the work day, I’m going to wait until I’m dealing with an employee issue, I’m going to wait until I’m dealing with a customer issue or some piece of technology that broken and try to go over these numbers, and it will not happen marshall. Can you grab my phone off of the computer behind the marshall grab my phone help at we have if you’re busy we were watching on thrive time should I come. We have the video version of all of the all the shows up there. She can check them out, but I’m going to pull it up on my way back up the camera, so you guys can see.
How is it not turning on here? Okay, let’s see this could be kind of a year. Did the first years, the first principle. Your phone is off friday to sunday my phone’s going to be a bit because that you don’t eat you, don’t you’re, not focusing on the phone while you’re doing the radio show you’re not focusing on these other I know it’s been great to finally powering up. So what I want I want to show that shows with listeners, hear that this is big, because this is probably worth the worthless in today. I’m going to pull up my alarm here and my alarm I set I hear, is it 252 is when I got up today to 52, and you know I got up at 2:52, because your soul, bible verse I want to share with you from proverbs 13:12. It says, hope, business coach deferred makes the heart sick, but a longing fulfilled is a tree of life. My 5 no control by find areas of five turns on, but this is what I hope deferred makes the heart sick, but a longing fulfilled is a tree of life. Proverbs 13:12. If you read proverbs, are you in any business book at all you’re going to discover that it takes time to be successful? You got to say no to things, become successful and did get your numbers. Correct, I mean if your coach will help you but I believe it’s going to require about 20 hours of work. Maybe I don’t know baby it make eyes is it is if you ever see one less than that, maybe 10 of those. So it’s going to take some time and when you sit down and look at the numbers, that’s going to get you to where you want to go, but it’s going to be tough to take time. She got a block out time to do. It was going to block out time to go to drivetime.Com. We have four ways to help. You will be in person workshops the 101 business, coaching, the video archive of thousands of videos and this podcast. My name is chloe clark I’m here to coach you up and help you get to where you want to go financially, but you got to take the action to drivetime show.Com today, I do 3 2 1