5 Numbers Every Business Owner Must Know

Business owners - what are the 5 essential numbers to grow your business?  

Watch YouTube Video

1. What’s the value of your time?  This number gives you perspective on how and where to apply your talents.  It helps prioritize your tasks.  Will this task make you money or avoid losing money - how much?  Without this this number you feel at odds constantly trying to do everything and failing to be productive.
2. When do you break-even?  Knowing when your revenues exceed the fixed and variable costs gives you confidence you make a profit for your efforts.  Without it you don’t know whether you’re winning or losing.  You don’t know the score.  You feel anxious and hesitant on strategy because you don’t know where you stand financially.
3. What’s the acquisition cost of your customers?  What are you spending in marketing, sales and customer experience to attract and retain them.  Are you receiving a return on investment?  Without this number you don’t have a basis to decide how and where to apply your resources.  You feel perplexed and must guess on marketing and sales strategies.
4. What is your customer lifetime value?  When you add up what your customer buys year-over-year plus their referrals, what value does it provide the business?  With this number you’ll appreciate your customers more.  Without this number you’ll miss apply your time with low quality customers vs focusing on retaining your loyal raving fans.
5. Finally, what is the value of your business?  What if you transitioned out of the business today, tomorrow or in 3 years what value do you need it to be?  What are the leveragable variables impacting the value?  How do you best show sustainable increasing discretionary cashflow?  Avoid feeling disappointed when this pinnacle event occurs.    

Knowing these 5 numbers is important.  Knowing the direction and rate of change is equally important over time.

If you’re uncertain about what your numbers are and their trends then let’s talk.  We’ll discuss how to calculate these numbers and how to move them in the right direction.  This is a complementary session and you're guaranteed to leave with at least a half dozen implementable ideas to improve these numbers.

Call me at ph:  972 709 6776 or eMail:  StephenMarino@ActionCOACH.com

Let’s get started...know these numbers and we'll grow your business!