Understanding The Economics Of Your Enterprise

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How much do you understand about advertising, cash flow, and raising business capital?

Most business owners understand what they do, but they do not understand some of the other important areas of their business.

Not understanding these fundamental areas of their business is what keeps them struggling, working long hours, for a lot less money than they need to, and living up to their potential.

So many businesses are ignorant when it comes to the numbers of their business. This is why you have people who promote a certain tactic like some new social media channel however unless you understand the number the tactic is useless.

Let me show you what I mean…

To live the lifestyle of a middle-class family in 1960, once you adopt it to inflation in 2015 you would have to make between $180,000 on the low end to one million dollars a year on the high end.

Many of you are living a lower standard of living than your grandparents did. Chances are your children will live an even lower standard of living, unless you do something now.

What kind of foundation are you setting up for yourself and your family?

Money isn’t everything…

Let’s just look at sales!

You might not be in the sales profession, but sales are the way you drum up a new business. One of our clients Yamaya Faye is a supermodel who has lived all over the world including Dubi and is now currently living in Spain who you may have seen in a magazine, and TV got her start by picking up the phone and cold calling for modeling gigs.

Many smaller companies underestimate the power of sales. Shark Tanks, Robert Herjavec spoke at an Inc, magazine event where he explained that the companies that are more focused on sales tend to do better financially.

The average person makes 8 sales calls a day. That’s around 250 calls a month and 3,000 calls a year.

And the average American, I want to remind you that most Americans live paycheck to paycheck.

I was trained to make 250 phone calls per day when I was selling on the phone, I made more phone calls in a month than most people make all year. 250 calls x 25 day month = 5,000 dials x 12 month = 60,000 calls.

In sales, your first job is to generate interest, and then make follow up calls to close the sale, 81% of sales are closed between call 5-8 calls.

Only 2% of people buy on the first phone call, 48% Never make a second call. 3% buy on the 2nd call, Another 24% Never follow up again, 4% buy on the 3rd call, 12% Never follow up again, 10% buy on the 4th call, Another 6% Never try again, 81% buy on the 5-8th, Another 10% Never try again.

When you follow up between 5-8 times, you’re doing better than 76% of salespeople. So, who is more likely to get sales? Those only calling 1 or 2 times? Or you, who is making 60,000 calls a year, making more attempts than 76% of salespeople?

When you understand the numbers of your business, it is easy to understand why 20% of salespeople make 80% of the money.

This is just by looking at one area of business, just imagine what else we have to show you.

The competition is fierce! But for you to succeed, you have to know what you are up against because as Marc Cuban said: “IF YOU DON‘T KNOW MORE THAN YOUR COMPETITION, THEY CAN KICK YOUR ASS”.