"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 1149: Bucket. Loads. Of. Cash.
Yesterday I was explaining why ‘strategies, tactics, application’ wasn’t the process I followed when working with new clients as well as what Dave was advertising to local families to make some extra money at Christmas this year.
Speaking of if your kids act up for 100 bucks I’ll dress as the Grinch, come over and throw your tree right out the fu**ing window…
Stu has a different approach to extra Christmas money.
Me: What are you doing for extra Christmas cash?
Stu: I’ve opened 3 birthday cards and I’m already $150 up…
Me: How did you manage that?
Stu: It’s called being a postman.
*silence*
In other news…
Winners win Championships… losers lose Championships.
Anyhoo…
Your one PROFIT ACCELERATION THING today is:
‘HOOOOLLLLDDDDDDDDDD…..’ ~ William Wallace in Braveheart
Follow me on this one while I explain how to make a bucket load of money… it’ll be worth it.
Business Owner: “I’m spinning my wheels and feel like I just can’t get anywhere / get traction.”
Here’s why.
Expenses have an incredible propensity for meeting revenues.
It’s up there with the other 7 wonders of the world like the Taj Mahal, The
Great Wall of China, The Colosseum etc…
The solution lies in, reasonably elementary, FINANCIAL EDUCATION and their psychology once educated (told by you).
Once your client gets to a certain point (BREAKEVEN, cough cough) they start to “roll downhill” because their profits increases dramatically.
Let me explain.
Simple Definition of Gross Profit = Revenues Minus Cost of Goods Sold (COGS).
If my daughter had a ‘Hot Chocolate Stand’ her COGS would be cocoa, marshmallows and water.
Simple Definition of Net Profit = Revenues minus COGS AND Expenses
The Hot Chocolate stand expenses would include rent, paying for the Urn to boil the water, salaries to pay her buddies. These are examples of expenses outside COGS.
Let’s assume Gross Profit (revenues minus COGS) is 50% and Net Profit (Revenues minus COGS and Expenses) is 20%.
Breakeven is a simple calculation ‘overhead divided by the gross profit %’.
A simple example you can follow:
Total revenue = $1,000,000 (she operates one KICK BUTT Hot Chocolate Stand)
Gross Profit = 50% = $500,000
Net Profit = 20% = $200,000
Overhead therefore, must be $300,000
300,000 / 50% (0.5) = $600,000 (breakeven)
Here’s the magic of the above and what I want you to REALLY DIGEST and how to make a BUCKET LOAD OF MONEY:
Once the client gets past ‘breakeven’ (600k)… ALL future profits are based on Gross Profit, NOT Net Profit.
As in 50% profits rather than 20% profits.
Said otherwise… The spread increases dramatically post breakeven and they finally start to realize financial returns.
But they struggle to get past ‘breakeven’ cause their expenses keep creeping up to revenues for no other reason than they’re not watching / paying attention / care / experienced etc…
IT’S NUTS WHEN YOU REALLY UNDERSTAND THIS.
Once they get there they start saying “when it rains it pours…” as in they start making some money and real ROI.
What is really happening is they’ve surpassed breakeven and experiencing gross profit margins (50% in example) which is a LOT more fun than net profit (20%) only.
The above is all psychology for your client.
If you’ve ever seen the movie Braveheart you’ll remember the scene when Mel Gibson (William Wallace) is yelling “HHOOOLLLLDDDDDDD, HHHOOOLLLLLDDDDDD….” In a very dramatic fight scene.
That’s your clients’ expenses.
Be the one holding the sword yelling, HHOOLLLLLDDDDD!
Thank me later.
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. Dangerous Dave just asked me this: “Are you supposed to wear the fanny pack over the gut or underneath it? I don’t want to look like a dork.”
#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.
