Yesterday I was explaining how People break rules for Alpha personalities and they… and make rules for Beta personalities as well as what the chicken said to James Bond after he crossed the road.

Speaking of Ken, Chick Ken…

Wifey and Dave were having a conversation and here is how it went:

Wifey: Dave, tell me a story you remember from when you were younger.

Dangerous Dave: I remember catching my Grandpa sitting out alone on the porch with nothing on from his waist down…

Wifey: This is already weird.

Dangerous Dave: Ya. I said Grandpa what are you doing sitting out here with no pants and no underwear on?

Wifey: What did he say?

Dangerous Dave: As he looked out into the sunset he said: Well Lil Dave, last week I sat out here with no shirt on and I got a stiff neck. This was your Grandma’s idea.

Wifey:

On other news from my BCS podcast…

You’re not a failure until you start blaming someone else.

Anyhoo…

Your one PROFIT ACCELERATION THING today is:

‘Break Even’

 When your client says:

“I’m spinning my wheels and feel like I just can’t get anywhere / get traction.”

There is a good chance the reason is this…

Expenses have an incredible propensity for meeting revenues.

It’s up there with the other 7 wonders of the world like the Taj Mahal and The Great Wall of China, The Colosseum etc…

The solution lies in, reasonably elementary, FINANCIAL EDUCATION and their psychology once educated.

Once your client gets to their break even point they start to “roll downhill” because their profit 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:

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 you’ll solve your client’s problem of:

“I feel like I’m spinning my wheels and just feel like I can’t get anywhere.”

Once the client gets past ‘breakeven’… ALL future profits are based on Gross Profit, NOT Net Profit.

As in 50% rather than 20%.

Said otherwise… Their profit increases dramatically post breakeven (600,000) and they finally start to realize financial returns.

But they never 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 start operating post break even and achieve gross profit margins (50%) 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 the example above) which is a LOT more fun than net profit (20%).

The above is all psychology for your client.

The closer you get to the finish line… the faster you go.

When your client realizes they’re at breakeven and that every dollar above and beyond this point (provided they don’t jack up expenses) is a 50% profit VS 20%…

They’ll go that much faster / try that much harder.

I’ve seen it MANY times.

If you can get across the above examples and realities of your clients financials… they’ll have significant long term financial wins.

Grade 1 translation to all of this… help your clients CONTROL EXPENSES on the way up.

That’s why it’s the first module on my business coaching software.

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. Want to control people? Divide them into different ideological groups and they will start fighting against each other while forgetting who the real enemy is.

#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/subscribe/

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.

https://karlbryan.com/business-coaching-secrets-podcast