This One Phrase Will Transform Your Business.

This weekend, I was hiking with my family in a state park — lots of trees, streams, and ticks. We all had a great time and the summer heat wasn't too oppressive. While we were exiting the forest, we were speaking about the economy and business, and my brother Jeff mentioned a quote I've never heard:

"Shame on you for not charging enough to stay in business."

It hit me like a thunderbolt. How many businesses do we encounter that bemoan the fact they aren't making enough money to survive?

Here's a little financial equation I use to understand the financials of your business and career.

  1. How much money do you want to make this year? Let's say $125,000 to make the math easy.
  2. Divide it by 50 weeks (you get 2 weeks off for vacation) = $2500 each week.
  3. Divide it by 5 days a week = $500 each day.
  4. Divide it by 8 hours = $62.50 per hour. But you have to have 40 solid hours of billing. If not, you need to increase this figure — even double it.

That's your hourly rate you need to make to pull in $125K a year. It doesn't take into account overhead, materials, help, etc. But it gives you a generalized idea of how much you are WORTH.

Then I have my clients build their business model the other way:

  1. How much can you charge each client on an hourly basis? Let's say $100 an hour.
  2. How many billable hours a day do you have? Let's say 5 = $500 per day.
  3. How many billable days per week? Let's say 4 = $2000 per week.
  4. 50 weeks per year = $100,000. A $25K shortfall.

This is important — usually the salary and hourly rate don't add up. I usually have to tell them to charge their clients MORE MONEY. Or figure out a way to deliver additional services to their clients so they make more money. Can you upsell? Can you sell them more stuff?

In any case — you need to charge enough to stay in business.

What are you charging? Do you need to charge MORE?

What Motivates You? A Simple Checklist.

An individual can't do their job effectively without being aware of what motivates them. A supervisor/manager should be cognizant of the fact that good performance is dependent not only on the abilities of team members, but also on how well team members are motivated to perform their tasks.

5 Ways To Guarantee A Great Job In Sales.

I have a lot of friends who lost their job and quickly took up with a company that positioned them as an account executive. Unfortunately, when they were 'trained' and 'graduated', they found that it's a cold and cruel world out there. With the exception of their family and friends, they had to cold call all types of people to hawk their wares.