01/14/2020
Sales – Grow or Die
🧾Sales is my second favorite business number, right behind net earnings.
This number is the buzz, the excitement, the pure adrenaline in your company’s veins🚴🏼
The exchange of a sale dollar between you & the buyer is golden💰
The market says they accept you... no, they ADORE you & want what you have to offer🦄
↗️Increasing sales then, should be the #1 goal for you in business, no matter how big you are.
Why?🤔
Because at a rate of 3 to 4 % inflation each year, if you are not growing 6-7% each year in sales, you’re dying🥵 The higher cost of doing business, if not offset by higher sales will erode the company’s earnings & you eventually will die.
Do the math people🔬
Always know your sales number from the prior year & compare it to where you are today📆
Watching sales year to year can be the biggest health check your business will get.🤑Sales trends on a downward trajectory can mean a lot of things, customer service is off or your target market has shifted & your product is no longer relevant.
Or maybe the economy is cooling🥶Use your trending sales number as a red light indicator.🚦
🗣Let the market talk to you. It might be time to retool.
Sales number also works hand in hand🤝with net earnings to grow your business & your personal income.
As you understand what percentage of the sale you actually get to take home after expenses are paid, you can have some fun with what if scenarios💁🏻♂️
🧐Such as, what if I wanted to increase my earnings next year by $11,000, how much more do I need to sell? If you know what your average net earnings are as a % of sales, it is as easy as pie.
🤑Such as if your sales are $100,000 a year & you make $44,000 a year in net earnings, you make 44% of every sale dollar. Thus, if you wanted to make $55,000 next year, you would need to sell $125,000 to do that ($55,000 / $125,000 is 44%) as well as keep expenses in line with sales.
This stuff isn’t rocket science🚀it is very straightforward.
✨The magic?
⚖️An accounting system that provides you those reliable numbers to even know that net earnings %.
Otherwise, you are operating on shifting sand🏝
Continued in comments⬇️...