RANT – Why You Need to Know Your Dang Numbers



hey bad ass business owners welcome to another episode of the local small business coach podcast where each episode we work on getting you to $100,000 in take-home pay so if you're all ready to boost your profits increase your sales improve your processes and develop stronger teams so you can stop living chopped a job and let's dive in hey bad ass business owners welcome back to the local small business sketch podcast all right today is Thursday which means it is know your numbers Thursday this is where we're taking several Thursdays in a row and we're just gonna focus on your numbers and helping you get better at your numbers because numbers are powerful they help us and you know what today I'm gonna actually not talk about a specific number because here's why I have been doing a lot of coaching around numbers over the last few weeks and I'm telling you something that is driving me bonkers and I get it I totally get it so if this is gonna sound like I'm talking to you it's probably because you're meant to hear this message I can't tell you how many people I've spoken to over the last couple of weeks that have no clue at their numbers they don't know their numbers they haven't looked at their numbers they're not inspired to know their numbers they just keep going I'm working hard here I'm gonna work harder I'm going to work harder and I'm gonna work harder you know and I'm gonna keep bringing this up I don't care if every tenth or 20 episode has to be about me hitting you over the head about knowing your numbers I'm going to do it you know it because I care about you way too much to not reinforce this over and over and over you know especially for those of you that are you know you've been in business for a while and you are frustrated you seem to have capped out you know you just keep working harder and you can't figure out why you're not making more money guess what it's in your numbers if you've been in business for a while and you can't solve something I'm telling you it is in your numbers the infirm you need is in your numbers for those of you that buy a business off of somebody else and you want to know how to grow that business how to make that business better guess what you have the information it's in the numbers if you're trying to figure out where you should take your business and what direction you should go guess what it's in your numbers if you want to know how to make as much money as possible during your peak seasons it's in your numbers if you want to know how much you need to be able to survive month a month it's in your numbers if you want to know where you should focus your team members on and what activities should they be working on it's in your numbers if you want to know what processes or systems that you need to fix to be able to improve your profits and your your sales and everything else guess what yep you got it it in your numbers everything you need to build a successful business is in your numbers now granted don't get me wrong knowing the numbers and knowing what it is is only part of it because then you got to take the actions the right actions to be able to turn those numbers into something even better than what it is that you have today but hiding from them putting your head in the sand does not help you know those numbers for some of you you hate numbers you hate math you hate anything and everything there's nothing exciting about them to you therefore you do not look at them well let me tell you my mission my goal is to help make numbers exciting for you you do not have to fall in love with math but what you have to fall in love with is what the numbers are telling you you know and and here's a great example that I use when I talk to people about this okay I have a friend who hates math hates anything to do with numbers they'll get all glassy-eyed and whatnot whenever we talk about math numbers or anything like that but what was interesting was and I'm going to go back let's go back like five years okay and I'm going to use an example from that but what's interesting is back in the day if you've ever been played on a slot machine right now they're all paperless you put in the dollars and you win this but if you ever find somebody that you know back in the day you used to put in the nickels or whatever the case movie my friend could sit there and tell you that if they won something on that slot machine and it came up I don't know four thousand nickels or three thousand nickels they could tell you to the dollar to the penny how much money that number of nickels were me I'd have to sit there and I'm like okay there's 40 and a $2.00 divided by the two I mean I'd have to actually do the math to figure it out but they were so in love with the end results of what those numbers meant that they guess what they were so excited they could do the math without even blinking with what they know if you have a gambler in your life you know that you know when those credits pop up they can tell you to the penny how much those credits equal even today without putting the nickels in and everything else or whatever because everything's a penny slot now but really you're not betting a penny you're really betting more than that because of how many credits and everything else that you have to do but if you ask a serious gambler you know who probably does not like math how much is in that machine they could tell you to the penny and the reason is they don't associate those numbers with numbers they don't associate them with them having to do math what they've associated with is something that they're passionate about something that they care about dramatically which is what causes them to be able to look at those numbers and know exactly what they mean they can tell you that that 3,000 credits is how many dollars that is they can tell you exactly what it is because of the passion that comes from knowing what those numbers mean same thing with your business if you're not passionate about your numbers it's because you haven't figured out what those numbers are telling you all right you haven't interpreted them yet to understand going oh ha oh my gosh I didn't realize that's what they meant you know it for some of you you have a business that gives you all kinds of reports but because you don't like reports you never look at what those reports are telling you but guess what those reports are giving you information about your business there's probably one or two of those reports that if you got excited by just one of them you would be amazed at how much more excited about your business you would be because you don't understand what it is that the numbers are telling you and they're not getting you excited because nobody has either you haven't dived into them or nobody has helped explain them to you and if you don't understand what those reports are doing then you need to get a hold of somebody that can look at the reports with you and help tell you maybe it's somebody in your same industry maybe it's somebody within your same type of business your company if you're part of a franchise I'm sure you have a district person that probably can help you out heck email them to me I will go over the numbers with you and let you know what my two cents are to help get you excited but here's the thing numbers give us important information but I guarantee you that if you dive into those numbers you're going to get passionate and excited and you really get excited when you start stacking stuff so when you have the first year on top of the second year on top of the third year kind of a thing oh my gosh you start to see trends because even when you have a seasonal business you start tracking you know putting year over year over year you can start seeing patterns of behavior you can start seeing certain items that take off certain items that take certain times of the year where you need to get ahead of the curve so for example you need to bring that inventory in before it takes off you need to bring those people on before it takes off because if you start hiring and bringing in an inventory after it's taken off you've already lost so much in sales because you weren't ready I'll bet you there's some of you that have been in this that that position where it just seems like no matter what you do you're always behind the ball eight ball if you will on what what you need to be able to maximize those sales that's what numbers can tell you I I'm begging you please stop letting your lack of passion for the numbers have you make foolish mistakes within your business if you really truly want to grow your business you can't be afraid of your numbers you've got to want to know more and you want to get excited by what it is they have to tell you you know what the other thing too is you want to make sure you're focusing on the right ones sometimes people focus on the wrong metrics I was talking to someone the other day and I was asking them what's the most important number in your business and they were coming up with some of the items that they felt were the most important in their business and yes while they were very important to their business they were numbers that they definitely needed to know ultimately they weren't the most important numbers in their business because what happened was is the most important number that you needed to know in your business is your profit and you need to understand where that profit comes from then ask yourself on those other reports and those other metrics how do they help you those so for example and in her particular case we were talking about some we were talking about applications for a product or service and you know she's like if I had a thousand of these things oh my gosh I'd have so much business well yeah if you had ten thousand of them you'd have so much business but it's not about how many you have it's about how many convert because would you rather have a hundred of something that converts really well or a thousand of something that doesn't convert very well give me the hundred I don't have to work as hard but I have a better system this is where the processes and the stuff come in handy that if I have a better process in place to convert the hundred I'm gonna have a high much higher success rate you hear people talk about this when it comes to like their email list that they build for their business same thing there's people have thirty thousand people on an email list and they don't make nearly as much as somebody with only a hundred people on their email list because it comes down to is the hundred raving fans people who really want to use your business that have really connected with you or do you have a thousand people that just love you just because you know some of you do this when you chase social media you think it's all about the number of people that like your page well guess what if you had fifty people that like your Facebook page for your business but they love you like there's no tomorrow I'd rather have those 50 people that love me like my page versus having a thousand people that just liked it because they came across it or they liked the name of it you know what businesses die in towns because people don't show up when my business when I closed my doors I'd run into people and they're like oh you used to own the Baskin Robbins oh my god we loved it there okay but you didn't love it enough to come on a regular basis you know what I mean because if they were there on a regular basis guess what the sales would have been there too attached to it so there's a big difference between somebody liking your business and somebody loving your business once again it comes down to the numbers and knowing what those numbers mean instead of focusing on the numbers wrong 50 can be way better of a number than a hundred or a thousand if you know what those numbers are telling you so that's the kind of stuff that I really want you to really get passionate and you can hear the passion in the voice the reason I want you to get passionate about your numbers is because it really helps you work smarter not harder you guys work way too many hours already you can't keep working more and more hours you're gonna burn out you're gonna find yourself frustrated you're not going to turn it into profit you have to figure out how to work smarter and this is why and I know I've been talking about this for a couple weeks we're going to really get going into the pull processes and systems and everything else but you need to understand those numbers to be able to know what processes and systems you need to put into place to be able to do it how do I convert you know if that report of a thousand people or a hundred people is important great now you need a great process behind it on how to convert it and what it's tough but if you don't you don't know what that process should be if you don't know how to read and understand those numbers ah listen if if you're going to be afraid of your numbers if you're gonna bury your head in the sand and not know your numbers then I hate to tell you this but you really shouldn't be a business owner if you don't want to know the numbers of your business you should you're better off not being a business owner you're better off being an employee let the boss of that company let your boss let the owner of the company let the CEO of the company dive into those numbers and you just be a good little worker bee you just go be a good little worker bee you're gonna have a lot less headaches you probably work a lot less hours and you'll probably make a lot more money so if you don't want to dive into your numbers fine then go be a worker bee for somebody else go help somebody else build their dream and what they want because they're passionate about the numbers because I guarantee you that's what they're doing they're diving into him they're trying to figure out how to make them work because all you're doing is you're just labor you're just the cheapest labor you can find for your business right now if you are not diving into your numbers I'm telling you right now card hole hard cold through you are just a the cheapest person working in your business you're the cheapest labor you can possibly find because you're the ding dong that will work more and more hours without even worrying if you're making more and more money and this ties right into what I talked about last week when I talked about figuring out what your average wage is what are you paying yourself today and the reason that you're paying yourself so little is because you don't know the numbers you're not figuring out how to make more money you're not figuring out what it's gonna take you just keep working more and more and you keep diluting what it is that you make because like I said you're the cheapest labor that's out there now I got so passionate about that piece of you understanding what you make that I actually went and converted into a video I know I haven't had a vein go for a few weeks because of being busy but after that episode I realized I needed to put together a video to walk you through how to figure out what it is that you make an hour so I'm actually recording that actually by the time this goes live it'll already be on the website or the YouTube channel over at local small business coach TV I'll try to put it into the show notes as well but you know I'm putting that video together so you can easily walk through it but here's the thing folks I want you to be successful I want your business to be successful but I also want you to make some money I want you to put money in your pocket because if you're gonna work this hard you might as well go work for somebody else work less hours bust your butt for them don't look you don't have to look at numbers you don't ever have to worry about numbers and guess what you never have to worry about making enough money because you know exactly what your paycheck is gonna be every single week because if you go work for somebody else and you know you've got this job working thirty forty hours a week and how much they pay you then you don't have to work so hard right you know exactly what it is you're gonna get you just have to be the best you every single day when you show up because I want you to be the best you if you're going to show up and work for somebody else but for those of you that are looking to make the leap to go from your full-time job to the business you're building you need to understand these numbers you need to figure out what it is that you make because if you make a certain amount it's your day gig and you want to jump over guess what you need to understand the numbers of your business because if you figure out that your average wage is only paying you 12 bucks an hour and the reality is is right now you make about 25 bucks an hour what makes you think you can jump from 25 bucks and all of a sudden make you know take your business of making 12 today and jump it to 25 no you're just gonna work twice as many hours to make that 12 turn into the 25 because if you don't understand how you can grow and scale that business if you don't understand those numbers that's exactly what you're going to do now I feel like a mom who's scolding you guys and I don't mean to trust me I am your biggest cheerleader I am your biggest fan which is probably why I'm so hard on you alright for those of you that have kids you understand this you're always hard on your children cuz you want them to have the best life you want them to be successful that's exactly what I'm trying to tell you guys today I am NOT trying to shame you you know what if you feel any sense of shame or sadness that's on you because you know where your starting from but here's the cool thing tomorrow is a different date today is a different day you can make different choices going forward and I am NOT going to hold it against you you know what I think that every single one of you that are listening to my voice right now has the ability to turn things around to grow it some of you are already knocking out of the park you are numbers you are all crazy with it but it's not about you loving numbers it's not about you loving math it's about you loving information about your business and when you have numbers that are associated with something you're passionate about and something you love it's not numbers it's just information and that's all numbers are for you it's just information just like that gambler in your life who can look at a slot machine and tell you exactly to the penny how much is sitting in that machine it has nothing to do with the math it has to do with the passion of gambling it's the yes to do with the passion of knowing money it's the same way a poker player you can look at chips on the table and know exactly what it is they can look at a stack and tell you within a minute because they have a passion to know that they've looked at them so much they've learned okay maybe they didn't know in the beginning the very first time they looked at the stack of chips they couldn't tell you but after a while they got used to knowing exactly what a stack of 20 looks like in 20 times whatever the amount of that chip is they figured that out you're going to figure out your business you each and every one of you have the ability to become a guru at the numbers within your business I'm not asking you to become a guru in math all over the world all over everything else I'm not asking you to know percentages inside and out but I do expect you to know that if you have thirty four percent gross margin what that means to you all right that I do expect you to know what that sentence means and what that percentage means because it's important to you it has to do with your bottom line I'm gonna stop lecturing because I know I need to I think you got the message I want you guys to start really diving in it's firing me up not only am i back to putting the videos together I'm really gonna start working on that course for you if you're if you want to be part of that course when it does come out about knowing your numbers head on over to know your business numbers dot-com oh no wait yeah that will take you to the website and then there's also know your numbers course comm both of them will get you there but anyways if you go on over to locals business coaches there it's also in the show notes I believe I'm gonna put that together I don't I can't promise what I'm gonna have that but I'm gonna try to focus on it because I want you guys all to be part of that course because I'm gonna break down all the different numbers and give you a look and if it and I and I promise you it's probably gonna be the best money you've ever spent because I can guarantee you that whatever you pay for that course which is going to be low anyways because I'm not here to try to make tons of money off of it but what you're going to get within that course is the fact that the very first lesson you're gonna figure out how to make that money back plus ton more because anytime I talk to people I make them hundreds of dollars because if you just listen to what it is about what your numbers are telling you its name it so much what I'm telling you I'm just helping you interpret your numbers I can guarantee you that every time that it drives me nuts that people will not do stuff that it's going to help them they think oh how am I gonna pay for this or how am I gonna get this well guess what it's because you haven't done the numbers you haven't figured out that if you spend $50 but you get hundreds of dollars in return that's a fantastic ROA it's a great investment we talked about this on one of our previous things and I'm not trying to sell you anything I'm just trying to tell you that the more you can understand about your numbers the better decisions that you're gonna make for you and for your business and I'm losing my voice I'm gonna have to get out here I gotta quit screaming at you but I promise you I love each and every one of you I love everything that you're doing you know what you guys fire me up so much and I've been talking to more and more of you guys like I said you can email me at tammy at local small business coach calm I try to answer everybody back I can't guarantee you that we're going to go back and forth 50 million times some of you guys I do but if you want to do coaching I'm here available to set up some coaching with you I give everybody a call for free first and we can just talk a few minutes about your business and whatnot but you know ultimately it's up to you I want you to understand your business better I just huh I get so excited because you guys are total badasses and I mean that from the bottom of my heart you are not afraid of working you guys work more hours than anybody else I just want to help you work smarter not harder I don't want you to have to work 50 you know 60 70 80 90 100 hours a week I don't want you to have to do that I want you to be able to work the number of hours that you want to work and make the amount of money that you want to make that doesn't mean I can promise you you're gonna make you work 25 hours a week and make $100,000 that's not gonna happen but you know what you can work 6070 hours a week and make a fantastic income and still be happy with what it is that you do and then you can grow from there on how to pull those back and still make the same amount of money you absolutely can achieve those goals in those dreams if you work smarter not harder and you understand the numbers because the numbers are the key to opening up the box that helps you earn and make what it is that you want to do all right I'm done get passionate don't be ashamed just just do what you need to do you already know it I promise you numbers can be fun it's not about the numbers it's about what the numbers are telling you that's what you got to get excited about and if you can get excited about that trust me you're gonna want to know those numbers you're gonna be begging to know those numbers you are going to be driving people nuts to get your hands on the information so that way you can read them and see what they're trying to tell you all right with that I'm out of here and you know you guys you guys are badasses to keep being about us and we'll talk more next week bye for now hey fat ass business owner if you're interested in taking your knowledge to the next level on understanding the numbers of your business then head on over to know your business numbers course comm and sign up to be one of the first to get any new items I put together to help you take your skills to the next level not only will you get immediate access to any new videos I create but you'll also get copied on any tools I create to help you get better at understanding your business numbers plus get any updates on the upcoming course know your business numbers where I will be taking a much deeper dive into the numbers that will help you become the bad ass business owner I know you are so once again if you want to keep building the skill building this business muscle check out the link in the show notes and head on over to know your business numbers course cough and sign up now don't you think it's time to use your business numbers to earn more profits

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