If you don’t know this one thing – your minimum turnover rate – then you could be destined for failure in your business. It’s that important! And that’s what I want to talk about here.
Good morning! Welcome to another episode of The Drive. Dean here, on the way to Internet Profits HQ. And it’s a little brighter this morning, although it’s that time of year where it’s freezing cold.
I’m actually running a bit late. I was doing a webinar with all those who’ve joined our Certified Partner Program last night, and it went on a little later than planned.
So when I jumped up out of bed this morning, I’m actually running behind. I’ve missed the gym this morning, I’m sad to say. But I’ll make up for it tomorrow. It is what it is.
I was talking to somebody – an offline brick-and-mortar business owner… When was it? A few days ago? Weekend maybe? I can’t think now, but just recently.
And we got onto the topic of…
Understanding And Knowing Your Outgoings
Understanding basically how much a business has to make in order to keep the doors open. Meaning ultimately, like the minimum requirement of profits or turnover rate in order to stay open, in order to stay in operation, y’know.
All too often (and this was this was my version on this). I was talking about, y’know, that it’s common practice in an offline business – a restaurant, or a store, a brick-and-mortar store in the high street – they need to know what their outgoings are.
They need to know that turnover rate figure, in order to understand how much they have to be bringing in, in order to keep those doors open, right? In order to keep paying the bills, to stay open – as a…
Minimum Viable Turnover Rate To Stay In Operation
…let alone then going into profit.
And a lot of business owners… He was basically saying, it’s surprising what he sees – a lot of offline business owners don’t know that turnover rate figure. They just kind of keep going about their business every day, and they don’t know that figure.
This is why a lot of people go out of business. Because they don’t know that minimum target, that minimum income they have to generate to stay open.
Then obviously, we got onto the subject of my industry – online business, digital business. And I said, “Well it’s probably even worse in this industry.” Because a lot of people when they start out, they just pluck out this figure and it tends to be,
“I Need To Make $10,000 A Month”
Now for some people I’m sure that’s true. But for the majority, most people don’t need to make $10,000 a month. It just seems to be that figure, that’s been clung on to and thought about.
And that’s the figure that everyone goes for… which is a fine figure by the way. I’m not saying that it’s not something to strive for and aim for.
But what I’m saying is, in terms of keeping the doors opn on the business… Or let’s just say, for example…
Continue reading on my blog: Discover Your Minimum Turnover Figure And Survive!
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