2 Metrics Decide Whether You Stay Broke or Become Rich

In this video, I will share with you my personal framework to track my progress in a short-term basis and long-term basis to see if I'm really aligning with my goals. As entrepreneurs, it's going to be really tough for us to know what metrics to actually track to evaluate our growth and business and personal life and whatnot. Again, every person will have their own individual choices. Some people track the income they make. Some people track the free time they actually have for themselves while running the business. Some might actually track their time spent quality with their family. Some people love traveling. Everybody have their own different metrics. Some people track how happy they feel while they're running the business. Some people track the customer success and feel good about that. So every entrepreneur will have different metrics. I will personally share with you what are the metrics which I personally have tracked in my own journey to give you a better framework if this can actually help you. Now, before I get into much details, I would just like to introduce myself. Hi, my name is Nikhil Sai. I'm the founder and CEO at Funneling Media. Started as a 19-year-old dropout, turned millionaire in just 2 years running my own marketing agency while delivering over 500 million verified results for my clients. So when I mean I know I have a framework to track personal growth, I kind of know what I'm talking about, and I've used that for my own self and help my clients with that too. So coming back, no more cliché, just getting straight to the point. I have 2 key metrics which I track for myself and also make suggestions for my client's business as well. On a short-term basis, which is less than 3 months, you gotta be tracking your hourly rate. You know, your hourly rate could be different for you. You might consider tracking your exact net profit and divide that by number of hours. Or maybe because you are the one who is running the company overall, you might be considering taking to, uh, considering the overall revenue and divide that by the number of hours you are actually putting into the business. And that would give you the hourly rate of the business generated on your effort. And that is a good metric to track. Now you can easily decide what task you're spending time on and quantify it with an hourly rate so that you're forced to do higher-level tasks. And you could actually see the progress, you know, in your balance sheet, in your bank account, when you actually work on them. And that keeps you motivated, and that keeps you up and running. At the same time, on a longer-term basis, this might not be the best metric to track. On a longer-term basis, talking about 1, 3, 5-year goals, you got to be tracking your net worth. And I'm being very honest and transparent here, tracking your net worth would be one of the key metrics for you on a longer-term basis. Again, I am completely aligned while I'm talking about the client results stuff, you know, doing the best you can, delivering amazing results for your clients, creating the impact and whatnot. But I would say people who have the most net worth have created the most impact. Like, look at the Forbes list of the richest people in the world. People like Elon Musk, uh, you know, the one who actually owns Gucci and whatnot. He's changing lives of thousands of people, maybe in a positive or negative way, doesn't matter. He's creating impact by his own means, which is his own company, his own products and services. So having a longer-term vision and tracking it by your net worth would be a good metric, at least at this point of time, as per my own terms. So those are the two things which I personally track in my own business— my hourly rate as well as my net worth— which gives me a very good sense of where I'm actually directing myself to, to make the necessary changes, to track and see where I am actually at hourly standpoint. Maybe I'm doing lower hourly tasks more, so I need to keep that up. Maybe I'm— my net worth is down in the last 6 months by XYZ percentage, or high by XYZ percentage, so I need to repeat what I've done or maybe optimize it accordingly and whatnot. Now these are the two key metrics on a short-term and longer-term basis, as I have previously mentioned. Other than this, you might consider tracking your health, your health score, how actually you feel in terms of, you know, feeling is not happy or not. That's not the feeling metric I'm talking about. I'm talking about physical strength, I'm talking about mental strength, I'm talking about emotional well-being, I'm talking about the relationships you have with your family and friends and close ones and the loved ones you have and how strong they are actually getting on a day-to-day basis. So that would also be a good metric to track beside the business standpoint. And those are the few important things I would actually mention, which I am personally tracking for my own self. And on top of it, if you would like to keep any other specific KPIs to track your business growth, maybe it might be percentage of clients who are actually having success, you know, breakthroughs you're bringing in your own personal journey, or maybe the time you're spending with your family or any other things, that's totally fine. But as an entrepreneur, I would actually focus on these two key metrics. One, in the next 90 days, what is my hourly rate? Like on a day-to-day basis, that's what I would track for myself on. Like, am I doing low hourly tasks or high-paid hourly tasks? What am I exactly up to? And then on a longer-term basis, anything above a year, I would track my net worth. Where I'm actually heading, what am I doing? The companies I'm building, what are they worth? The clients and the recurring revenue I have, what is that worth? That would really give me a very good sense of where I'm actually heading towards. So I hope that framework helps you. I'm giving you a simple example so you can understand. If you have— again, I'm talking about a software standpoint— if you have a software product and you have $10,000 a month in recurring revenue, you're looking at a $120,000 retainer, considering you're not having huge expenses to handle the whole fulfillment part I'm assuming that you're spending $20K on the fulfillment. So that's a yearly $100,000 EBITDA, which can give you a million dollar valuation at a software selling standpoint. So that's what I would see as a net worth. So how much is my recurring revenue growing? What is my company worth? How many more case studies we're building? What are the companies we're adding into our portfolio? How big our brand is right now? How many better podcasts I'm doing? What is our, you know, brand presence? How many leads and appointments and sales we're making? Like, all of this creates the enterprise value on a longer term basis. Now coming back on a shorter term basis, I would look at what am I doing on a day-to-day basis, what is my company making on an hour-to-hour basis, my input to the output which is being generated, and track it so I could see where I am heading at a personal, uh, you know, execution standpoint for my business. So I hope this video helps you out. And again, you can keep your personal metrics, but I believe along with your personal metrics, if you add these two key metrics for your own personal self to track your business growth and yourself as an entrepreneur, That would keep you in the right track, uh, in my personal opinion. I might be completely wrong for your case, but again, it depends. So try this out, test, and comment down below what your opinions are about this video. Once again, this is Mithun Nikhil Sai, 19-year-old dropout turned millionaire in 2 years, running my own marketing agency, sharing behind the scenes on what I'm doing on this channel and sharing all the frameworks I've learned till this date. So consider liking and subscribing to this channel and share this with a friend who who might not be tracking his hourly rate. So right now I aim to at least do, you know, $3,000 per hour tasks, because if I'm actually selling my time, that's what I get paid for. So I aim for that at least. Sometimes I do much higher level tasks, most of the times I do much lower level tasks, and I try to maintain my overall focus on finding those $3,000 tasks. And trust me when I say this, you can't actually be doing $3,000 tasks every single hour. That's not possible. So you gotta be productizing, uh, you know, your own day, or I would say keeping a schedule for yourself where you're knocking most important parts which are worth high value, then get into the operational stuff and the sales stuff which will be lower value but still add value to the business to keep the business going. So that's it for now. Thank you so much for watching. Bye.