"I created Profit Acceleration Software™ so you can BOOST bottom-line profits using the power of compounding growth without spending more on marketing."- Karl Bryan
Day 1139: Common. Sizing. Comparables.
Yesterday I gave you 5 random thoughts highlighted by the fact that if you jump the net will appear as well as what Dick said when I asked him what he learned at school today.
Speaking of the impressive answer of apparently not enough cause I have to go back tomorrow…
My Drunk Aunt is enamored by Alexa and here is their conversation:
Alexa, remind me to go to the gym.
Alexa: I have added gin to your shopping list.
My Drunk Aunt: Close enough.
In other news…
Making a mistake is inevitable but admitting it is optional. A mistake is not an issue unless it’s not admitted.
Anyhoo…
Your one PROFIT ACCELERATION THING today is:
“Common Sizing”
It’s not the sexiest subject in the world but it’s the second most powerful activity you can undertake with a coaching client’s income statement.
*Accountants can charge A LOT more and provide significantly more value when they provide this kind of magic for their clients.
BTW… You’ll need to listen to my podcast to find out the most powerful thing you can do with an income statement :o)
Common sizing is taking an expense on the income statement and measuring it against revenues on a PERCENTAGE BASIS.
If a business had revenues of $1 million and paid $150,000 in rent.
The common sized version of your new coaching client’s income statement would have 15% besides “rent.”
If advertising was $100,000 on the same business then that line item would be 10% (10% of 1 million).
When you look at this version of an income statement, with comparables… financial documents are a borderline waste of time without comparables.
As compared against last month, last quarter, last year… you can see where a single expense can be out of whack and eating profits unnecessarily.
Like stepping on a scale. If you’re 200 pounds… but you were overweight at 260 three months ago… you’re doing great.
But if you were 170 three months ago that same 200 pounds isn’t looking so good.
Comparables.
Business example:
A huge expense for a restaurant is food wastage.
If they’re buying well this number will be under control… if it gets too high they know they’re getting loosey-goosey on the ordering.
Very common.
They don’t measure it so they don’t know.
They’re too busy to check the freezer and say:
“Send the same order we got last time” to the supplier when they get complacent / too busy.
A retailer has a similar situation when ordering stock months in advance. If not managed well they can end up with a lot of dead stock which EATS their profits and into their margins.
This possibly doesn’t sound very exciting to the non-analytical mind LOL… But when combined with three things (the basis of my 4 day financial training for business coaches):
1. Comparables
2. Relationships
3. Trends
Learning to read and comprehending financial statements is totally life-changing for someone that wants to be insanely rich via business.
The richest people in the world build businesses…
You heard it here first.
Now, pick up the phone and go help someone.
Obsessed with your business coaching success,
Karl Bryan
Founder, Focused.com
PS. Don’t bet against the person who keeps showing up.
#ZeroToOne
PPS. If this helps and you want it to really sink in… GO TEACH IT to someone cause that’s the best way for you to learn it. A friend, your spouse, a prospect, a client etc…
*Don’t plagiarize my work like a lame arse.
PPPS. Marriages break up from lack of money… over lack of love X 100. Business failures lead to destruction, addiction, depression, anxiety, suicides, and unfortunately, far more.
As good business coaches, we save marriages, save families, save kids from self-destruction… we save lives!
A true life of purpose.
PPPPS. If you’re looking for a proven system to follow for your coaching…. I created Profit Acceleration Software™ and high-end step-by-step training to support it…
We did a training that will teach you ‘A strategy that can DOUBLE your clients’ bottom-line profits using exponential growth without spending more on marketing.
Imagine finding your high-ticket coaching fees BEFORE you start coaching your new clients?! And a proven coaching system created for you to follow with your new coaching client.
Access the free training here
PPPPPS. Forward this to someone that needs to subscribe to my daily emails and get a limited-time, complimentary subscription to my business coaching magazine go here:
https://thesixfigurecoach.com/
PPPPPPS. They tell me my Podcast is Ric Flair style, Money Makin, Client Getten, Joint Venture Landing, Event Fillin, High-End Coaching Client Findin Gold For Business Coaches.
Karl Bryan, Creator of Profit Acceleration Software™
Karl Bryan gets clients for Business Coaches...period. He is the Founder of The Six-Figure Coach Magazine and creator of Profit Acceleration Software™ that shows you how you can BOOST bottom-line profits of any business using the power of compounding growth without spending more on marketing. His goal is straightforward… to help coaches and consultants get more clients.
Get a demo of Profit Acceleration Software™ at focused.com.
