Business Unfiltered
Is Your Business Profitable?
June 27, 2023
Welcome back to the Business Unfiltered podcast with Jeff and Mercer. In this episode we discuss how do you know if your business is profitable? 0:01: Two strategies around profit. 2:45: Strategies for maximizing profit. Strategies to put in place around profit. A lumpy revenue trap. How to get paid twice a month. The main strategy for profit is margins. 7:13: The difference between an agency business and a training business. Two different business models, agency business and training business. The top and bottom line. Cost of goods sold is 25% to 35%. Healthy business margins are important. 11:39: Reinvesting in your business. Reinvesting in the business to prevent burnout. Taking 25% of leftover money. 14:57: The three ways you get paid. Three ways to get paid, salary, profit and book value. 17:52: The difference between a startup and an agency. The importance of having a minimum salary. 19:35: Profit vs. Expense. Expenses are the number one expense in the agency world. How much to invest in growth. 23:34: The importance of retainer consistency. Retainer consistency of revenue is key. Revenue projections are a big part of predicting profitability. Selling a strategy project as a retainer. Selling the retainer as the continuity and ongoing piece. 28:21: How to qualify leads. Qualifying leads and choosing who to work with. Non-negotiable times to be profitable. 33:02: The fruit tree analogy and its value. The fruit tree analogy to the kid analogy. The low-hanging fruit. Holding it to a monthly profit. Final thoughts from Mercer on this topic.
Topics Covered in this Episode

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