Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine

Subtract your material and subs cost before you divide by the magic number range to get to your ideal employee count.

For each full-time employee, your company should generate Real Revenue of $150,000 to $250,000 (ideally more, but this is the minimum).

Selling more is the most difficult way to increase profits, because in the best-case scenarios, the percentages stay the same; and in the worst-case more common scenarios, expenses generated to support sales increase faster, resulting in smaller percentages and a smaller profit margin.

Pareto Principle, commonly known as the 80/20 rule. For the history buffs: Vilfredo Federico Damaso Pareto was an Italian economist who studied the distribution of wealth in Italy in the late 1800s. He discovered that 20 percent of the Italian population owned 80 percent of the land. Then he looked at his garden and observed that 20 percent of the

The Pumpkin Plan

CHIP AWAY AT EXPENSES

Effort is financial cost and time cost (your time, your people’s time, your software’s time, your machine’s time).

How do you get two times the results with half the effort?

Even if you are strapped with debt you are eradicating, you still need to celebrate during the process, and a cash profit distribution to you, however small, helps you do that.