In any business you need to know your profit margin. How much do you want to make on each job, or sale of your product to be profitable. In an ecommerce brand you may have the cost of product + Cost of fulfilment + profit margin = Total Cost to customer In a service based business that would break down into Material + Labor + Profit Margin = Total Cost to Customer When calculating Profit margin, please please please don't make this mistake or you'll lose money.... Example Labor = $5000 Material = $5000 Random person: “So I want to make a 50% profit margin, so I'll multiply by 1.5 to get $15000” This is wrong.... You have just calculated a ~33.3% margin.... Because we need a 50% margin on the Selling Price! What you charge the customer! 50% profit margin means the profit is 50% of the original cost. Let's clarify the difference between Profit and the Selling Price: - Profit: The amount of money you gained. - Selling Price: The cost of goods + delivery + the profit. The real calculation Labor = $5000 Material = $5000 Profit Margin of 50%, -------> $10000/.5 = $20000 __________________________________ This $20,000 is known as the Selling Price That $10,000 is your profit margin. Now its your responsibility to protect this at all costs and maintain your expenses to perform the job quoted. Next I will teach you how to calculate the "True Cost of Labor" with a pdf you can download to find out your labor rate in whatever business you operate.

I thought I’d make a quick post regarding the inevitable truth of running any business. You will fail. You’ll have set backs and obstacles to even the best laid out plans. In my previous post I gave you a practical plan for increasing touchpoints and drumming up business that involved yard signs. I ordered these and they came out beautifully, but the QR codes don’t work! Should have gone with a dynamic QR code, but you live and learn. (Didn’t even know what that was til recently) It’ll take some time to get QR stickers made to plaster over the signage. But for the sake of SPEED we are going to place 10 a day until the stickers arrive. (Good thing we had multiple ways to reach us on each sign)

At the meeting yesterday we had a discussion and came up with 3 solid reasons for choosing a partner in any business. 1. They have a skill and expertise that the founder doesn't have the time to learn right now and they're gonna speed them up. Something that can't simply be hired like an electrician, but you're hiring expertise in running the business. 2.They’re bringing in a network of people and relationships that is going to provide loads of business. 3. They’re bringing a substantial amount of money that equates to value that you'll be able to hire people, buy equipment, property, or do so much advertising, you're going to be busy. Quantifying these accordingly obviously for when you give the equity percentages. If they're not one of those three things, you probably don't need to make them a business partner. You just need to make them a well paid employee, with bonuses based on performance.

Had an amazing time at the More Leads, more profits seminar. Met 10 other incredible business owners and brainstormed ways to stay busy during the winter season. Can’t wait to drop some nuggets of strategy here for you all. But I’ll need some time to test out a few of the ideas we had. I would like to start sharing more real life case studies with you all. Less theory and stuff you can find on insta/youtube but real life data and action. Stay tuned!

As a small business owner, every dollar counts. When you first start bringing on employees an hourly pay structure may seem straightforward, but it can sometimes lead to unexpected costs, reduced profitability and promote an unsustainable culture in your business. The Pitfalls of Hourly Pay Unpredictable Labor Costs: Hourly pay can lead to fluctuating labor costs, especially if projects take longer than anticipated. Reduced Worker Incentive: When workers are paid hourly, there's less incentive to work efficiently and minimize downtime. Overhead Costs: Hourly pay means you're paying for employee benefits, taxes, and other overhead costs, even when there's no work to be done. The Benefits of Percentage-Based Pay Aligned Incentives: Workers are motivated to complete jobs efficiently and effectively, as their earnings are directly tied to their productivity. Predictable Costs: You can better predict labor costs and budget accordingly. Reduced Overhead: By minimizing idle time, you can reduce overhead expenses. Improved Quality: Workers are more likely to take pride in their work and deliver high-quality results. How to Implement a Percentage-Based Pay Structure: Set Clear Expectations: Clearly communicate the percentage rate and the factors that will influence the final payment. Establish Performance Metrics: Define key performance indicators (KPIs) to measure worker productivity and quality. Offer Incentives: Consider offering additional incentives, such as bonuses or commissions, for exceptional performance. Monitor and Adjust: Regularly review the performance of your workers and adjust the percentage rate as needed. By carefully considering your specific business needs and the skills of your workers, you can implement a percentage-based pay structure that maximizes productivity and profitability.