Hey, Jumpers! Today's topic is all about numbers and their importance in your business. It may not be the most exciting subject, but hear me out, because it is definitely one of the most critical aspects of running a successful business. Many business owners tend to overlook the significance of numbers in their operations, leading to financial mismanagement and potential losses. In this podcast episode, we'll dive into the numbers you need to know in your business and ensure you're getting them right. Whether you're a small business owner or a CEO of a large corporation, understanding and utilizing the right numbers can help you make better decisions, identify growth opportunities, and increase your bottom line.
Topics Discussed and Key Points:
Why tracking numbers is important
Numbers make us better leaders when making decisions
Mastermind
Six numbers to track for your business
Chinese wall
The importance of tracking website analytics
Knowing the profit margin for all services, charging by time, and using numbers to make decisions.
Timestamps:
[00:32] Introducing today’s show
[01:51] Why we need to know numbers
[03:44] Tracking revenue
[03:58] Tracking expenses
[05:17] Tracking net income or loss
[06:24] Tracking gross margin
[06:35] Tracking cash flow
[06:43] A break-even point
[08:27] The importance of Google Analytics
[08:51] Why do you track your user number
[09:24] Sessions
[09:41] Bounce rate
[10:18] Average session duration
[10:53] The conversion rate
[11:17] Employee retention rate, churn rate, and client retention rate
[12:36] Check out the Mastermind
Notable Quotes:
[00:01:06] ‘If you want to grow your business, you need to know your numbers. You need to know them at a minimum every quarter. I encourage you every month.” [00:01:17]
[00:02:11] “Our team needs numbers to hit or to strive for, to know. All right. This is the litmus test. We're doing good or we're not doing good.” [00:02:19]
[00:03:14] “Numbers matter. Your business numbers matter. The revenue numbers matter. Your client total. All of that matters. But it can be a real pain to try to figure out which ones you should be tracking.” [00:03:25]
[00:03:58] “If you guys are using a debit card right now to pay for anything in your business, you're not leveraging what you could be. I highly recommend applying for a credit card, a business credit card, and get your business credit going and you can earn points that way.” [00:04:16]
[00:07:11] “By tracking those numbers and analyzing them regularly, you can gain valuable insights into your performance and then be able to make informed decisions on what you should do.” [00:07:21]
[00:08:02] “While you might not love numbers as a business owner, as a responsible business owner, you need to know some of these business numbers.” [00:08:11]
[00:08:33] “Your Google Analytics is the epitome of if you had a storefront, you want to know how many people come in your door a day, right? You want to know what the average sale is every day. You want to know how many people walk in and walk out without buying anything.” [00:08:50]
[00:09:28] “By tracking the number of sessions, a business can see how often users are visiting the website and identify opportunities to engage in or train them.” [00:09:36]
[00:09:53] “A high bounce rate isn't necessarily a bad indication. Why? Because most of you guys have an online scheduling system that is hosted on a third-party website.” [00:10:04]
[00:10:30] “There are so many statistics that the more people read on your website and watch, the more likely they are to buy your product or service because they are invested.” [00:10:41]
[00:13:03] “Failure is the greatest lesson we can have. And so you want to fail forward. You want to fail fast. You want to learn everything from that failure so that you can tweak and adjust. It's testing, you can tweak and adjust and keep going.” [00:13:16]