Clash Flow Training - May 2019

Okay, so it's May 27, 2019, just doing an introduction of cash flow to really get the team to understand cash flow. Because our whole focus here at make youe Mark is to have our team really organized around cash flow. Your mindset's great, but here's a challenging part. You have the best mindset in the world. You have no direction. What do you do with the best mindset? Nothing. My mindset's great. Yeah, but where do you go next? I have no idea. So for me, it's really giving people the rails to run on. Like, mindset is a big part of what we do. And as we go through today, I want you to ask any questions. I'm just giving all of you an overview of this. You can use this in your personal life. If your financial situation is not great, use a cash flow. Tell you exactly where your money is, you know, really, really important. So take the value of what you're going to get today. Use it in your well, use it here to make your mark. We use it with our students. I'm going to talk a lot about it as we go through now for some of you might be like, ah, cash flow, money, what have you. Remember your energy, Think, ah, guess where money is probably in your life. Probably not most abundant because at the end of the day it's a challenging part for a number of our business owners. The biggest reason why I'm doing this training, getting us really focused on this is because most of our students are cash flow challenged. That's their biggest challenge. Most of the business owners are cash flow challenged in some way or form. So it's really looking at how we look at this. I look at it pretty much daily at making mark. I spend time on the weekend as well for making Mark. Looking at our cash flow, where things are at as well. Because, you know, it's without numbers, you're just running in the dark, you know, And a lot of people like, I feel you should do this, I feel you should do that. I don't care about feelings, I care about facts. What cash flow does for us is give us fact. Okay? And as we go through this, please do your best to stay with me. If you're not with me, just Colin, I'm not with you. Like, I don't expect everyone to fully understand this stuff. My goal is by the end of this, have a better understanding from where you're at right now. Okay? Really, really important. So one of the key pieces for me is really getting you to understand. So let's just go around the table really quickly. What do you understand about cash flow? Forget what's on the screen. The screen is useless for now. What do you understand about cash flow?

More coming in than going out.

More coming in than going out. Okay. The flow of it. What's left over after everything's said and done? What's left after everything you said and done? Okay, really? The other day, what you spend, you bring more in than what you spend. You know, so the same thing, your personal life. You know, the biggest thing in cash flow, in anyone's personal life is you go to Starbucks, you buy food, you buy coffee. Five bucks coffee. It wasn't a five buck coffee, it was a seven buck coffee. You had to earn seven bucks. Pay two bucks in tax to get your five bucks to buy your coffee. It is an epiphany for all of you. Your car payment is not a $300 a month car payment. It probably a $400 a month car payment. You had to earn 400 bucks. Pay 100 bucks to the government, left with 300 bucks that you now pay your car payment with. CJ Misfits. That's a big epiphany. I teach my daughters that it's not a $50t shirt they're buying for them. They pay less taxes from the tax bracket they're in. But it's probably a $60t shirt. You know, this stuff is so important in your personal life as well as your most people. This is what I take home. No, you worked many hours. Most of us work until August for the government and then we make money. Yeah, you've probably heard that statement before. So it's really important to get your money working for you and for us to get our business owners money working. So I'm going to take you through a process here just so you can watch this for a second. In fact, you know what, let's just say a card or something good in front for hazardous. So if you look at this is on the screen there. Okay? So if we took a cash flow in a business, there's very simple things, okay? Very, very simple things. There's revenue or income. Very straightforward, okay? So there's number one, there's revenue, income, there's number two. You might have heard some of this terminology. And my goal, here's the thing. So let's understand this. My goal is not to turn you all into like cash flow gurus. I've been doing this for a long, long time. Like I understand this stuff like I do with my eyes closed just about. But the Key piece is this thing here called. Let's run it out. Often called cobs. Yeah. Okay. Cost of goods or cobs. Just be careful of birds. That might be. Okay. Start to smell smoky, super hot lens. There's cost of goods. So. And I'll come to in a moment. Then there's expenses or sometimes called overhead. Then what? You're finally left with the sexy thing. Profit. So let me give you some formulas here. I'll stick this up as I go around. So just keep everything visible. So very simple in a business there's only a few things you can do if you think of it. So the revenue. So it's very simple. Let's just use this marker. So let's just say. Marker the revenue. Let's just say we sell this marker. Let's say we buy it from somebody. So we buy the market for 15 bucks. What does that give the company? We buy it from $15 worth of revenue. Revenue. Okay, well, others use this. Make your mark. So we sell this, it's $15. So it brings in $15 worth of revenue for make your mark. Okay, but then our cost of goods is five bucks. So we go to a supplier down the road, we buy this for $5. We come back here, we sell it to our clients for $15. That leaves us what they call. Now this is going to get you a little bit thinking here. A gross profit of how much? 10 bucks. Cost of goods, amount. I tend to do a little bit here in a bunch of time in a short amount of time. So your cost of goods are anything. So this is put in another color. So cost of goods are time and materials directly related to this marker. Everyone with me on that. So this marker costs five bucks. So what's it the five bucks worth of materials that are in here and if it was a human being involved, their cost to be to make manufacturer's marker. So labor cost, rent, ageo, all that kind of stuff. No, no. Directly related to marker. So I want you to start to just think about this. Okay, so this is directly related to the marker is the five bucks that gives us a gross profit of 10. Then we have. Which gives us gross profit in the same. So gross margin is just the same thing. What percentage the profit you make the profit of the revenues. Gross profit is 10 bucks of the $15. So what percentage is that?

Two thirds? 66.

Is our gross margin. This is probably the most important number in any cash flow in a business because here's why. And I'm going to get some discussion going around this afterwards. So then after we have X, so from this, so what does it leave us? So let's just say so we sell this for 15 bucks. We pay the supplier 5. We left with 10. That 10 bucks. So this 10 bucks here goes to pay expenses or overhead, hydro, gas, office staff in the office, whatever it might be. And then very simply, if I take all of this, put it up on the screen as well. Here's the formula. So if we take revenue minus cost of goods minus expenses is equals profit, actually, or net profit. I'm not going to get into too many, too much terminology. So if you think of this profit comes after we've paid the suppliers and the cost of the materials. We've paid all our expenses, we're left with profit.

Are you going to talk about how to calculate that? This is a product based business model. How do we calculate that for a service based model where there isn't a strength?

For now I'm not. Yeah, for me, the easiest. So in a, this is really for sure a product based model. In a service based, the easiest thing to do, revenue minus all your costs. Because your gross margin in a, you know, this is a really good gross margin. 66% has a healthy gross margin. You know, for many companies, if you go, we have students that have a gross margin of 8% and then they start to take all the expenses from that 8% and they're left with whatever their net profit is. You know, we have some, we have one client who's at 2%. 1.8% is their net profit. That's why you have to be crazy to open a restaurant. Yeah, a lot of people don't realize it. You know, there's certain, certain math in restaurants. If you don't follow the math on percentages, you're dead, you know, so very quickly. So this gives you. This is a very simple. This would be. Let's just put them in a different color. This would be for a product and there's a service in a service. I would keep it very simple. Revenue minus total expenses equals keep it very simple. So when you look at a business, it's not rocket science. So if you take these items here, how do you increase this item? Sell more. Sell more is number one. What else? Decreased cost of goods. Can I get the cost of this marker down to $4? Ask the supplier. Maybe I could buy more volume, whatever it might be. Okay. Or reduce expenses. Do I need office space? Do I need more materials? How much is our shipping? Get our shipping cost down. Anything. Get a hydro down, whatever it Might be Hydro's not a great example because no matter what you do, you pay it. But the key pieces are, that's the only thing. This is all cash flow. That's the only thing you can do in cash flow. How can we increase the client's revenue? How do we decrease their cost of goods if they have cost of goods, their expenses? So that's why you'll hear me say a lot of times when it comes to cost of goods, a lot of people buy a lot of stock, sits on the shelf for ages and does nothing that's very expensive. Why? Because it just ties up your money. Just ties up your money in stock. So once you start to really think about when we're on a phone with a student, this is the number one reason why they drop out of a program. They're not making money. The biggest part is they don't understand some of the basics. Even our students, which is simply this. If they're a product based company, they don't realize there's costs. They're like, no, I have, let's just say they say I have $15 worth of rent. Well, bring in $15. I pay my rent. No, but you just have to pay the supplier five bucks. Well now negative five dollars, you know, so you have to bring in for this specific one, if your rent was 15 bucks and your profit's 10, you'd have to sell two of these markers to make sure you can pay your rent. You with me on that? You okay? So I know there's a bunch of math. I mean this is the stuff I love. Because if you don't know your numbers, how do you run it? I mean all our team leads here should understand cash flow. Don't understand cash flow. How do you ever run your area of the company? Because cash flow is one of the most important pieces. You know, every area has, here's my revenue. These are the cost of goods. Maybe if there is one, it might be down here more so. But let's say cost of goods like Facebook ads for marketing, there's revenue minus cost of goods minus expenses equals profit. Because our Facebook ads is a cost that directly related to bringing people into events. So the key part, this is super simple. There's lots of detail along what goes on. But what I want you to think about is when a client phones in and we have majority of reason why they drop out of the program, cash, I'm not making money. So we have to help them on the phone to understand. I mean some of you, this is not for everyone. I just want you to get this. It's even the same in your personal life. You got money coming in from salary after taxes. Okay. Your cost of goods. You don't normally have cost of goods but you have a bunch of expense in your personal life. The way you increase your profit in your personal life either decrease expenses or increase income. Most people want to increase income. And as they increase income, what do they do with the expenses? They increase the expenses. They get no profit and they wonder why they're broke. You know, most people do not live within the means of what they should be. Every time they get more money, they spend more money. That's the biggest challenge. So this stuff works in your personal life or it works in business as well. The biggest part is understanding the numbers. So let me give you an example of I'll come back to a profit based business for now and then I'll talk a little bit about that about back to a service this simple enough for everyone. I don't expect everyone like someone on the phone. I'm going to do a couple of phone calls today with clients and you can hear what do you think? So from what we do at make youe Mark, many of you have been through some of the programs with me and maybe you've been in the back of the room with some of the programs. What have you is what can our clients do to increase revenue? More sales. More sales. What else?

Raise their price.

Raise their prices. What else? Because most of them are undercharging for what they're worth. Guarantee you that. So they can raise their prices. What else? What impacts making sales? Okay, well that's get more clients. What allows us to get more clients? Networking. Are you going to go out and network? Key thing for today on the phone with is the air conditioner. Is can we like with Troy on the phone today? Troy, number one, you need to increase your revenue. Yes. What are you doing? I'm sitting in my store waiting for people. Troy, can you go networking? Yeah. Go to the right networking groups where people have the money to buy his high end lingerie. Here's the challenge with his lingerie store in the sense that he has lingerie and sex toys together. High end lingerie lady is not going to go near sex toys.

It looks like he has lingerie, sex toys and boudoir photography.

Boudoir photography is fine because high end people are okay with it. Like if he was local. Let me give you an example. If he was local, Gabby would never go in his store. She wouldn't mind going in the store if it was only lingerie. But go in a store that's full of sex toys and you come out and you meet somebody, the first thing they'll think about, not the lingerie you're buying, but what toys are you buying? It's weird, you know, it just does happen. So for him it's raising. So he could raise his prices. Go networking. What else could he do? How do you find more customers? Social media. Social media.

I mean, I wonder how many stores he has because when I was only one, only one.

Now I think I'm not sure because.

There'S reference online that he had two. Two at one point, maybe three at one point. Might be just down to one, I'm not sure.

That's brutal, man.

I mean, like if he's. He could either maybe do a smaller storefront, maybe have a larger storage warehouse. If he's like doing the whole sex toys, selling that online and keep the lingerie maybe in the store, or maybe.

Put all the sex toys online and be done.

Yes.

You know, so here's a challenge right now where he has the two create a very mixed message. They're two very different markets. I'm not saying anything's wrong with sex toys. You enjoy sex toys, whatever, it's your choice. But the person buying high end lingerie does not go anywhere near a sex toy store. The person buying sex toys, whatever, do they buy high end lingerie? They might do, but I don't really. Some people don't care, but that's okay. But the majority of the market care to buy high end lingerie. So that's what he could do. He could do Facebook ads, He could do a number of different things. His biggest thing up here, the challenge wise is revenue's challenge. He has a mixed message in his store. So that's going to be part of the discussion with him today. Well, what do I do? Well, now he's got to a stage probably where he has no money. So now marketing wise, there's a thing called guerrilla marketing, which is doing marketing with no budget. There's only two things you can do in life. Either spend money or spend your time. He has no option but to spend time. That's what guerrilla marketing strategies are. How can I do marketing with no money? So he has an option now to do guerrilla marketing strategies. Dropping out of the program is not going to help him. In fact, what could he do? He could go online, watch sales warrior. He could go online, watch marketing warrior. Like what are you doing to create the right message for your store?

Sales warrior would be really good. I just finished that over the weekend. And have that really good exercise about determining your value. Like going through that.

Right? Yeah. So that's. So that's what he could do. The other thing he could do to get. Remember we focus on this one. He could reduce his cost of goods. I don't get the amount of this here, unfortunately, with lots of people is you get your cost of goods down. So whatever he's buying his lingerie for, secret toys for whatever the challenging part is, I guarantee there's too many. Too many lines, too many, whatever. Oh, but I need all that stuff. No, you don't need all that stuff. The problem is the more you buy, you might have seen in the restaurant industry, there's certain restaurants that get away with this. That counter, this. There's a very set reason for it. The best restaurants in the world by far have the smallest menus, except for chain stores and the most empty fridges. Great product. Yes, that's true. Unless they're a Boston pizza or a Cactus Club, where they're buying power and they can buy centrally and then ship to all their stores. Then they have buying power. Very different story. So he could get his cost of goods down. It's probably. His variety of products is too vast.

If he already has all that stock, he should become an Amazon reseller.

He could become an Amazon reseller. The problem is there. How much time are you going to spend there when your store is his challenge? Right now he has a noose around his neck. It's called rent. And he throws Kongi out of his lease. We'll chat about that in the phone. We phone him today as well. So this is where he's stuck. So he's between a rock and a hard place. Everyone with me on this, everyone following. It's pretty interesting stuff. Okay, so let's get another client. Give me another client. No, no. But she's giving out books like she's upset with us. And make a mark because we are vetting her people she's sending in. We're telling her they're not the right quality. But here's the challenge part. So. So what I do with a person like Robin and this is the challenge. No. Can we make an exception? Oh, no, there's none of that bullshit. There's no exceptions. Our rule is, after the 31st of May, those books are gone and only the quality of people can. This is what I would say to Robin on the phone directly. Robin. So we are vetting the people. Why? Because we're Looking for a certain avatar. Who's your avatar that you're looking for? I'm looking for this, this and this and this. I'm going to send you four people who don't fit that avatar. Are you okay with that? It will make you click so quickly you're like, you know what, you're right. That's what I would do.

Jaymen, does that sound familiar?

No. See, that's what I would do every single thing with a client. Push it back to our trainings, you know, for me. No, we don't shift things for people. No. Break the rules or whatever. That's just weak. We are not meant to be a weak company. People come to us for accountability. So Robin, who's firstly, I'll throw you on the phone and say, hey Robin, how's it going? Blah, blah, blah. Colin, I'm upset about the books. Before you discuss that, who's your avatar? Who are you looking for? I'm not really that sure, Colin. So if I'd have sent you people and they couldn't afford your services, would you be okay with that? It's like, no, it's a waste of my time. Colin. Robyn, we only ask him for the same. She's fucked now, to be honest. How could she tell you no? Give me free tickets. I'm so done with people that want stuff for free. I approach it with Sylvia in Toronto, said, Sylvia, the people you're sending us, those five people that are coming out this week or next week in Toronto, Sylvia, are they going to be buying customers? Oh, Colin, they're financially challenged. I'm like, so why are you sending them to us? Well, the program's great. Yeah, so is ice cream, but you don't get it for free. I wish. You know, it's like, seriously. And she was like, wow, it's not going to make you any money. Maybe you'll help your team or whatever a little bit, but that's not helping us. Doesn't help make your mark. Doesn't help you get in the program. It helps people come and just have a great time. And she's like, okay, I'm with you on that. So I said to her, please make sure phone them and say Colin's ready about you being part of the program. I'm okay with asking for that. I am so done with people that are looky loosing, you know, really, really important. So always any client be pushing them back to the training. So we have the online academy for a reason. Entrepreneur academy for sure. There's a mindset component to It. Kieran, There's a big part to mindset, but mindset without direction is useless. You know, it really is. I mean, we saw it with companies that I've watched for years that are. Have been in the personal growth space. They get people all riled up and super excited and then the people stand there like deer in the headlights. What do I do next? I've got all this excitement, all this amazing energy and this amazing mindset. What I do next, because people don't know what they don't know. So for me, it's getting people ready to think about how do we increase income, how do they reduce their cost of goods? And then for Troy. Troy, have you taken your cost of goods, so your expenses, every one of them, and looked at every single one of them. Can you get your cell phone cost down? Can you get your rent down? Have you phoned your landlord and said, hey, things are a little bit tight right now. Can I have two or three months reduction in rent? I've never thought about that. He won't do it. Have you phoned? No. Well, then do it. Have you phoned your credit card company and asked him to reduce your interest rate on your credit card? No. Do it like all this stuff. Next thing, 100 bucks, 200 bucks, 500 bucks a month gets freed up. He goes, take that money. Go do marketing. Increases revenue. You'll see us on a call today. Like, I am so done with people dropping out of the program because we, you know, for me as an owner is. It's allows. We allow them to drop out because they're in financial challenge. That's not acceptable. We should be saying, how do we help them? Hence this meeting. Everyone with me on that. Let's help these people. You know, it's like, it's like having your friend who's got cancer and he's like, oh, yeah, I've got cancer. Great, off you go. Go die. As opposed to, hey, I know someone who's got a solution. Let's figure out a way. I've got some. I was searching online. I found some health remedies for you. Let me help you. We cannot allow people to disengage and be okay with it. Everyone working on that. Our thing is, I've already worked with Gabby and Donna on this to put a PIF process in place, you know, for the people who paid in full. I don't want them phoning us. We should be in touch with them, you know, after social media, was it last week. Phone the piffs. How did your course go did you get, you know, not. Did you get value? You should never ask that question. It's like, what are your biggest nuggets? What are you going to use from the course? What's your strategy? I'm doing this, I'm doing that. Great. Let's go. You know, and those PIFs have a special strategy. Why we have a process in place for them. Because I don't want ever to phone the office again. I want them to phone the office. We're excited because the program's. They're crushing the program, you know, and there's a number of key things we'll be shifting in the next while as well, the next six months around, really improving, continually improving the program. Because remember, as we sit in this room all together is whatever our students say about me, the company, whatever. It's our reputation, you know, so it's our goal to look after the clients, help them with their cash flow. So anything. So what are the. So let's just get to a whole list of different things. What goes into overhead or expenses?

Staff cost.

So staff, rent. Let's get people to write them down. Rent, hydro phones, cell phones.

Electricity.

Merchant fees. The credit card fees. We spend four or five grand a month on credit card fees. Wine, budget, food and beverage. Yeah, yeah, food and beverage. Entertainment. Entertainment, absolutely.

Supplies, binders, etc.

Supplies. And miners without going. Cost. No. Yeah. Make your mark. You have to be very careful that you can say we both. These. We do have a. We do have a cost of. Of goods. Like when we go to Business Mastery, some of you probably don't know this. Those who know, don't. Don't answer. What do you think our cost is for every person sitting in the room at Business Mastery outside of the event Cost? Just materials in the room. Easily a couple hundred. No, just in terms of stuff we hand out at the event, about 30 bucks per person. Binders, arrows. Arrows are like 4 bucks an arrow. You know, binders, arrows, journals, handouts, dream booklets, your markers that we use there, all that kind of stuff. So when we had 100 people in a room and 20 people were buying, 80 people were 80 times 30 bucks. We were spending 2400 bucks on those people with no return on revenue or investment. So now we have, let's say 50 in a room, finished with 20 to 25 people buying. Well, now our cost is only 25 people times 30 bucks. So in the day, it's 700. What's it, 750. All right. Yeah. So it's just super interesting to start to look at these pieces. You know, I don't want to make part of this, so I don't want to get too far into. Into the depths of this because otherwise I could sink a boat here. Because numbers are what run a business. But the key pieces are there's other cost of goods. Cost of goods. Remember, the piece up there says time and materials. So if I'm a person making these coffee cups and let's just say these are handmade coffee cups and my salary is five grand a month making coffee cups, then the materials and my salary to make this coffee cup are cost of goods. Everyone with me on that, the person doing the invoicing, the person doing the data entry, what have you expenses, because that person doing data entry is not directly related to manufacturing the product. Everyone with me on that. So it's always time and materials. So some team members. So if you look at make your mark, where would Gabby be? Cost of goods or expenses? Expenses. Where would Andrew be? Cost of goods. Andrew, Heather, Mo. Cost of goods. Cheryl? I'd say half and half, probably half. Half around some of the stuff, you know, anything you. So for me, you start to realize each person here, Penny, Erica, expenses. You know, it's not cost of goods. Certain part of it though, for setting up the room, certain part of your salary. So a percentage of your salary would go to cost of goods for doing room setup for each of the events that are local. So it'd be 50, 50. May not be 50, 50. It might be 20% of her time doing that or 10% and the rest is in the office. So it can be a split. So it can be a split. So this stuff's super interesting. Let me show you something here though. This what blows people's minds. So just so you know, it's not only this for service. You can have. Let me do a make your mark example. Just take Mim as an example because they give you. So let's just say I'm going to make up all these numbers. So let's just say we go to an event and let's just say we're doing sales warrior. What's the revenue from per day that we bring in for a course approximate per student as part of their packages. Sh. Package. Give me a guess. Don't. I'm not going to hold you to it. 10,000. No, no, no. Not per kid, not per student. Oh, $600 a day.

Oh, no, it's about.

Yeah, it's about 700 bucks. 700 bucks per a day, per student. Right. That's absolutely Right, honey? You're only paying a 700 bucks per month payment. If you go to sales war, it means you break even. Well, how many days go? Okay, give me. I can do it in my head.

So it depends if they need to the capital.

But it's not 700 bucks a day. That's maybe including the, like. I'm talking about what the student. So what does that cost for our student to be in that room? No, what they pay is one thing. So let's just say. Let's just say we have make it easier. Let's just say we have 50 students coming into an event. So those students have all paid. Let's just call it one single event. Let's say they've all paid $1,000. They almost smell that. So what do we bring in revenue wise? 50 grand. Okay, they go to this event. Let's just make a little fun. We call this. Let's just call it business excellence. Business excellence. We have, you know, the cost of goods, so time and materials. So let's say the materials for business excellence, the room cost. So the room is part of the cost. So room cost. Everything else for business excellence is. And let's say it's a 30,000. 30,000 cost, everything else. And then the people at the event putting the event together. So our team that's at business excellence, what have you. Let's say it's $10,000 worth of team time, you know, for Penny and Erica, way before the event, then at the event, putting the whole event together. So let's just say this is 40 grand. That gives us a gross profit of 10,000. What's my gross margin? So gross odes 10 grand over the 50 grand. So that's our gross margin for business excellence. Just breaking up. You're making these numbers up. I mean some of these numbers, some are accurate enough, but some are not. Then from that we have all the expenses back to the office. So let's say back to the office. The expenses here for that event, put it together, are 5,000, leaves us with 5,000 net profit. So we know that for every dollar. Watch how this works. For every dollar we spend, because this is 20%. So for every dollar we bring in, we only get 20 cents of profit because the other 80 cents is going to pay the cost of goods. Everyone with me on that. So we only have 20 cents. So when we say business excellence, let's just say, for example, let's get another entertainer for a thousand dollars, we have to pay a thousand dollars out of gross profit. So let's say the entertainer is 1000. What revenue do we have to bring in to pay that $1,000 person? 5. $5,000 in more revenue to pay the $1,000 person. Everyone with you on this. So this is where it gets really interesting for people because when you start to think of this, you start to realize this number is the most important number in all financials. Here's the 20% is your gross margin, which is this number here. I want you to think about it. So think of, think of this. So let's take, let's just take an example of this with. So let's just say the gross. Let's say the gross margin at make Your mark is 20%, which, thank God it's not. If a gross margin is 20%, then for every $1 you spend, you need to make $5. That makes sense for everyone. Okay? So I want you all to realize this. Even our team lead's in the office. Okay? So when the team lead comes to me and says, colin, I want to hire a new person at three grand a month. It's only three grand. Colin. That's a good person. Three grand divided by. We have to earn. We have to make $15,000 just to make. Just so we can pay that person. Anyone with me on this? It's fascinating. So what this is therefore, this is for break even. So we bring in 15 grand because out of the 15,000, you know, 80% of that goes to cost of goods. It leaves us with 20%. That 20% leaves us with three grand to pay that person. We've only broken even. Make your mark hasn't made a dollar yet on that 15 grand, zero in that month, whatever it is. Well, that person that's bringing 15 grand a month. Exactly. We have to bring in 15 grand a month to pay that person, you know, so watch how this works. So let you write some numbers out, please, if there's any questions that come up. This number is one of the most critical, like I say, most critical numbers. Because now you take this and you look at. Because remember, you take your gross margin or your gross margin with your gross margin or the gross profit, you pay your expenses. You have no gross profit. How do you pay your expenses? You know, so for me it's really important to think about this, think about companies that are out there. So there's a jeweler just down the road this way, just down the road here, Jose Jewelers, just a couple of doors down. Okay. I used to be worked with Jose and eventually I stopped working with him because honestly, some People are not coachable. So one of the key things with Jose, his gross margin, 25%. So he comes to me and he says, colin, I'm going to do. I'm going to. This is one December. I'm going to do an advertising campaign. It's going to cost me about $15,000 for this ad campaign. So the ad campaign of 15 grand, he said to me, I'm sure I'll bring you 15 grand and I'll break even. I said to him, jose, you need to bring 15 grand divided by the 0.25 just to break even. He hasn't even made a dollar yet at 60 grand. That's why I stopped working with him. He said, I'm doing it anyway. I don't care. Guess how much he made from the ad campaign.

15 grand.

He made 40 grand. He didn't make 40 grand. He brought in 40 grand's worth of revenue. He didn't even pay for his. He didn't even pay for his ad campaign. Anyone with you on that? It's fascinating. So this is the kind of stuff that people fess. He's like, I bought in 40 grand. I said, yeah, but you. You didn't even cover your number one. You covered the campaign, but you never covered your expenses. You got broke so quickly that way. And that's what happened to him. So it didn't happen to him. He had to downsize his store because he didn't get the ROI. He had to make 60 grand to break even. You know, because, remember, he bought in 40 grand. Of the 40 grand, how much was gross profit? 25% of that. 25% of that. So 10 grand. 10 grand. What is his cost for his candidate? Negative 5 is negative 5. People don't think this way. He's like, but I bought in 40. Yeah, but you're negative five. What do you mean, I'm negative five? I bought in 40. Clueless. Everyone with me on this. So this is the stuff that when we talk about. So when we talk about things in a person's business, how they improve cash flow, it's not. One of the most important things is this number. Because watch here. If we took that number and said, let's just say your gross margin was 20%, 30%, 50%. That's what the numbers are here. And 70%. Let's just say you had an expense of a team member that was four grand. Whatever. Four grand as a team member at 20%, how much do I have to bring in to pay that 4 grand grand? 16. Yeah, 16. 5. Times so 5, 20, 20. That's a pretty low gross margin at 30%. We're talking about break evens, right? Yeah. On that salary I'll bring in 30%. About 12, 5. Somewhere out there, 50%, I need to bring in 8. So I'll bring in $8,000 of revenue. I make 50% gross profit. Therefore I could pay that person the four grand and at 70%. 6,800.

Yeah, 6,800.

So you look at this. The higher your gross margin, the less revenue you have to bring in to break even on your expenses. So this number, the higher this is, the better for your business. We have some clients, so just think about this. So one client, who's that? Do the math. So 44,000 divided by 82 or 48. 48. No, you're right, 48. That person has to bring in 48K just to break even on that 4 grand salary. We have one lady that, she runs a travel business and this is where gross Martin's at. You remember her? What was her name, man? Christina.

Christina.

No, no, no, you're not Christina Foster. Sea and Dive and Sea vacations. Petra. Petra. Petra. That was Petra's margin. So Petra used to go to a trade show, her trade show, on average it would cost her five grand. And I said to her one day, Petra, do the math. Five grand divided by eight. And she's like cool. I have to make nearly 60 grand to break even and should on average come home with 50 grands worth of sales. She's negative, but at least you get exposure. Well, as you go broke, anyone with me on this? Because she has to bring in, this guy here, has to bring in 48 grand to make enough profit, gross profit to pay the salary at 8% margin with that expense for that expense. So every time you hear people say oh it's only 400 bucks or it's only whatever, it's the same thing in life. You're like, like the coffee, it's not a five buck coffee, it's a seven buck coffee. You know, because you had to, you worked for so many hours at a certain wage to get that before you pay tax and you pay tax and then you buy after. Tax dollars. The same thing with business owners. They just think, well I have a four thousand dollar employee, I pay that four thousand dollars employee for the four grand that comes in. I'm like yeah, but Jeff costs. What's your margins? No, no, I complained. And then they're like why I've got no money in my bank account? Because you don't understand margins. Is this making sense for everyone? Questions? That's a fine rule.

Andrew, if you had a product based business, would you advise extending payment terms with your suppliers to get ahead on through behind Michael Troy, could he ask for, you know, net 60 or net 90 instead of if he's on like a 30 day payment term?

For sure, for sure. I mean there's a couple of key things. I'll take this down, I'll show it to you, I'll show you because I have an example of that, of what we did with Helen. Well, Helen was looking for a, looking for an investor in her business and she's like Colin, I got, I need to get an investor. And I said why? She because I need half a million dollars. So I said to her, let's work, I, let's work with your suppliers and let's make a deal and I'll show you how it worked out. It's pretty cool. Okay. Like it's small but it's okay. Does anyone can read that content? Yeah, yeah, that's cool. I like it in one screen. How do you get rid of this stuff? So let me give you an example of that one, Andrew. So first watch this. Okay, so this, I use this at Profit Warrior. As soon as you get this. So this is a simple spreadsheet. So, so I want you to stay with me. I'm going to go through each example and I'll come back to your example at the end. It's easier Andrew, because there's a lot of loose people. So you look at this company. This actually was a lady down the road who owned a jewelry store, pretty much her jewelry store. Okay. Was it a jewelry store? No, I think that's the next example. So anyway, so this company has income of about 15 grand a month depending on some months it less their cost of goods because they're 55%. So of that 55% is their cost of goods and then they have all their overhead or expenses. It's the same thing. So the overhead of $7,090. So their monthly profit and loss is very simply income less your cost of goods, less that and they get $340. Okay. Then there's the cumulative down the bottom here which goes back up top because you have a bank balance. So the next month, they start out next month. What's their bank balance? Negative 340. Negative 340 plus their income minus their expenses, cost of goods minus expenses, they're still negative 340. Now they're negative 680. Is this a Healthy company. No. So what they end up doing is we take that company. So give me something. What do you think they could do to improve their cash flow?

Look at all the different things they cannot pay themselves. That salary, everybody.

So I'm funny with this kind of stuff. So, yeah, we could make the company super profitable. But the person goes broke in their personal life. Okay? Like me, I know I work in my own company to make money. I don't work in my company to keep everyone else employed. Amigo. Broke. So I say leave the salary in. I could say on this one, possibly a bookkeeper. That much? I think you need a bookkeeper. Probably half that. Yeah. Okay. Even maybe 200 bucks a month. Staff. Come back to that in a sec, jay. So that's 200 bucks a month. Okay, so a lot better already just by. Shouldn't take the bookkeeper down. So let's just say cam pages is dead. We don't use cam pages anymore. It's just a waste of time anyways. And so staff, you know, let's say 900 heat, hydro alarm, phones. Maybe you go get a new deal on your phone. Get the phones down to, I don't know, 100 bucks a month. Who are we just done to make your mark? Gabby got the phone phones from 1200 bucks a month down to 300 bucks a month. Do the math. $12,000 a year in savings. Like, we look at this stuff all the time. Why? Because this is what we teach. So, okay, now. Now we get that phone down. Whoops. Now the company. Now we're profitable. Okay, now we're super profitable. But unfortunately, we. What's the need to be expensive? It's a $10,000 a month income's gone down. So income goes down. Now they're back to should creep. Okay, well, that should creep. So now all of a sudden, they. Wow, Things aren't working. Watch what happens though. Watch the cost of goods. Top left hand corner. So if I take a cost of goods at 55% and I say, let's get our cost of goods down. Let's get it to 50%. I go to my suppliers and I say, hey, can I work? You get my cost down. Who does the numbers? Everything changes. Watch what happens if I don't change anything. Let's go back here. How do I get it back down again? Hello. How do I get the thing back down again? Go to home. Okay, thank you. When I go back. What, the back tab?

Yeah, just undo it.

Okay. Control Z. Let me just undo all of them. Okay, so that's that now let's change this only to 50%. Think the cost of goods is important, the most important number in a company. So that changeover independent of changing anything else. You know this company. So everyone with me on this. Yes. Okay, so what should happen? Let's just keep it as 55. Let's just say, you know what, you're an idiot. Go work out of your placement. That person's got money coming in. They're making four grand a month here. A couple of months of negative. When their income, when the revenues go down, not substantial, they've got money to spend it. So this person, you look at their. This is the most important line, gets their bank balance here. These few months are negative as an individual month. But in terms of their money in the bank, they're growing. They don't have to rent. So when I hear people, I'm going to go rent space, I'm like, are you crazy? Like, why are you renting? So some of you might say, well, why don't we rent out a couple of offices here? You understand? Why? Now everyone with me on this, like, it's just money. That's. Oh, but Colin, you bring in 500 bucks a month from Hooli and 500 bucks a month from the other guy. So that's a thousand bucks with gross margin. We don't have to make 2 or $3,000 in revenue now to pay that thousand bucks of rent. We have everyone worse about that. This stuff's smart stuff. Okay, so if you look at that, so that's just one. That's an example of control. Z. Z. So that's just the one example. So that's one example. So this one's cost of goods, the same thing. Look, it's negative here. So this is what I talk about to our students. I say to them, you know, everything. This company looks hunky dory. Everyone with me, six months out, forget about January. This should actually be whatever, currently updated. But it's not, because this will be today. This will be May or June 2019 going forward. Because always predict forward. And all these costs come from what your average monthly costs are. You predict them forward. Where did this company go wrong? Cuz like, look at this. Super positive. This guy's like, hey, I got money in the bank. Things are great. What happened? The rent, they increased the rent. They moved. What else? Me rent.

Their heat and hydro went up.

And the staff, everything went up. Everything went up in me. Everything went up in May, but yet the revenue stayed the same, if not went down. The thing is Got money in the bank, so now become dumb.

And the owners started drawing more.

Owners started drawing more. So I kept it in the same and said, you know what, let's just keep the rent the same. Let's keep. Let's just keep all this the same. This company's not a 30 grand in the bank. Stayed in the same place. Is it supposed to be bleeding? One decision can change everything. So this is what I do when I do pro CEO work. The first thing I look at is a cash flow. What do we need to change? I look at the expense, I look at their cost of goods and I work with people. We have to have all the products that we have. Scott and Cindy in Scholars Choice, we eliminated a ton of their products. They weren't selling bitcoin. We love those products. I don't give a shit if you love them. If you love them enough to be broke. No, don't be broke. Okay? So the key thing, watch this though we kept it. It was May and said, let's make this four grand. Like he or she wanted an increase. They're still a healthy company now making the money they want. But they went and paid a whole bunch of rent and they increased their phones, increased all their other things. This made them go broke. This making sense to everyone. It's eye opening, isn't it? Freaking eye opening, man. This stuff's crazy.

So Colin, how do you get around the potential eye opening that somebody might have when they see make your mark as a cost when you do this worksheet with them?

Because we're an investment. So like you don't get like, for me, your phone's an investment. Your marketing advertising is an investment. Heat and hydro. You can't have your people freezing to death. You know, staff's an investment. So a lot of this stuff is all investments in order to get what you need. But like food, eating out three times a week, that's a sure cost. No, no. Eat out of the clients. Not all the time. Eat at home, you know, so it's the investment side. And this one gets the making mark students, because what are you making mark students do? They look at their gross margin. They're like my payment, 700 bucks a month. I'm making 30%. So now I make 2100 in revenue to get my 700 bucks to play make your mark Interesting. So this becomes. That's why I love teaching Profit warrior because it becomes a discussion at the event. There's like a buzz at the event between the students. I'm like, hey, I know what you're talking about like what? I'll make your mark permit. And they're like, how do you know that? I'm like, I've only done the course, I don't know how many times. And. But it's eye opening for them because we put this up and make a profit Warrior. Then we say, now one example uses like Tim Hortons, like coffee for the team. So every morning you go and buy coffee and donuts for the team at 50 bucks at 20% gross margin, you have to bring $250 worth of revenue that day to pay for the 50 bucks worth of donuts. You cannot run a company only on that. There's also what I call wind in people's sales and team motivation and inspiration and that kind of stuff as well. But it makes it. The students think to me, they walk out of profit Warrior to go to lunch and they're like, this is a 40 buck lunch. Can you pull over? I didn't make 200 bucks to pay for my 40 bucks lunch. Why am I buying this nudge makes them think something got to. So then, then of course the opposite happen. They come back with like McDonald's wrappers and I'm like, oh, I didn't expect you to become unhealthy now. You know, keep your banner chain healthy, but keep your body falling apart. So this is at this simple. So if I go back again, simple company, does it compute? Key changes function Z. Control Z. Oh, sorry. Thank you. All right, one more. There we go. Cool. Thank you. Look at that. Company sucks. By the end of December, let's just say this was January right now by the end of December, they're negative 22 grand. Yet they can make some key decisions. This decision here was because they had money in the bank. Let's move, let's go, get out space. Blah, blah, blah. And this is what I get our students to do every single time. So give an example of this. So let's just say things are really good now. You're like, things are bombing along really cool. And you say, you know what, let me just do this. Let me hire a marketing manager. This is what we do with all our students, okay? Since hiring a marketing manager, things are going great, what have you. We can hire a marketing manager. Yeah, probably April. April looks like a good time to hire. We've got money in the bank. Things are good. So let's put in five grand for a marketing manager. We put the five grand in like first month. Didn't change too much. By the end of the Year I'm like, whiskey tango, foxtrot. You with me on this? This is what every single student should be doing. You first put in the cash flow. Then from there you look at how does it impact our cash flow. Now we look at hiring a marketing manager in the office that's been through our cash flow. I spent the weekend on our cash flow, making marks, looking at all the numbers and figuring all the numbers out. Because this makes sense when you're sitting over here. But the last part is when you put this in before you hire them, before you even interview, what is think we're going to pay? You're like, oh, we're going to be negative, seriously negative. So you don't do it. So this person would be, it's like, well, I want to hire a marketing person. But you know what, Maybe I hire a marketing person and they work out of my dining room. I don't move space. My salary is still the same. I decide to get, you know, keep all the stuff in the body around the same. And is your revenue maybe I can put a bit. Throw that out there? Yeah, let's just say, let's just say even a small amount, your revenue goes up by 20. Like 20%. Yeah. So 24 grand. The company starts to turn really quickly. I mean, you got it all the way down, you know, so the key thing would be marketing person would be like, how do I make August and September not so slow? So I'm busy with that. It's really interesting with our clients in Atlanta, who I was with on Friday, is with them. They're like, they have three months of killer revenue, like 6 million in three months. And then they sucked wind until the start of the next three months ago. I'm like, you guys are on crack. So I did the cash flow for them. Been building this with them. They didn't have a cash flow. Can you believe it? A $10 million company that has zero cash flow in terms of nothing built like this whenever. So I start building with them and I have it on my computer in my office and I go through the whole thing with them. And when I was down there with them, I'm like, wow, what happens if you made Christmas as successful as your back to school events? It's a school product company, you know, it's called the School Box. Ah, Christmas doesn't work. I'm like, it does for Cindy and Scott in Vancouver in Ontario. Their Christmas is as equal to their back to school season in terms of revenue. Ah, that'll never work. I'm like, well, then I might as well pack my bags and walk out because if it never work, it'll never work. Are you open to having. So we put a whole. I put a plan together for the month when I flew back and we'll make Christmas this year as big as their back to school with the strategy. That's a game changer for them. Change. Change the whole business. Change the whole business. You know, Trevor has one of these. I mean, this is what I work on with all our clients. I work with Trevor on his cash flow, what have you. So if you look at this and you go, let's just go to number three. Some of these examples are really crazy. So this company, this is one of those crazy ones. Andrew, this is what you asked about. So this is a company that you can. Their cost of goods. If you look here, the gross margin is all over the place. The reason being because they decided to say we're going to spend about $56,000 this year on product in terms of what we're going to buy. Can we pay the supplier equal? Equal monthly installments no matter what we sell. But they supply the product. It's not healthy, to be honest. I mean, it does good for them, but the first few months. It does good for them in that first few months because otherwise they would be, you know, in a serious place. But the average here would be. The average gross margin would be, I don't know, 50 or something like that. So that's one way of structuring it. So some people structure it that way. And then there's the one crazy one which I used to be, which was my equipment company, which was this one. I think it's a software number four. Come on, get out of the way. Look at this crazy company. So this is what I used to be in was equipment sales, like a mining equipment. So you get, let's say $160,000 order, but you get 50 grand up front. Look at how much, what it does to your money. So payment terms become critical. Payment terms become critical. You know, if we said, you know, would you pay us? You know, so of course we have 160 grand coming in, but we have to pay out 50 grand for the steel and everything else to make the machinery. And then we have to pay another 50 grand worth of steel and all that kind of stuff at the end. Really what that doesn't do is we've already brought in 60 grand. We paid out 50. But our gross margin is crazy. Our gross margin is super small. The key thing here is that really Impacts your cash flow. So what they could do, they could say, how do we get our cash flow up? And just simply change the cash flow to. So our cost of goods are here. We can't change that. But how do we. What happens if we've got a hundred grand up front and 60 grand at the end because the order is worth 160 grand. See what happens to the cash flow just by changing the payment terms. So, excuse me. So I can have 100 grand up front. It's there. And I'll give you 60 grand at the end four months from now, once equipment's ready. Well, it makes a big difference. But if you keep it, if you keep it the way it was, you have to find 13 grand somewhere. This makes sense for everyone. Now, there's lots of numbers on here. What I want you to really get though, out of all of this is we have income, we have cost of goods, we have expenses. And these are the two that I look at. The minute I go into a company because they already got revenue coming in, they've got income coming in. It's. What are these two things here? And where's the hole? Where's the. Where's the hole in the bucket? And you start to see this. I mean, this company, you know, owner draw or whatever, four grand, six grand down here, everything pretty much stayed the same. They just drew more out. The channel in your pot is now they're negative over here. Then I go back to positive. Why? Because I got another order in income. Came in cost of goods, what have you. This is how we used to live when Gabby and I, when I ran the mining equipment company. There'd be a year and a half, we would have no orders. A year and a half, Not a single order. Then we'd get a four million dollar order. Then you'd eat happily for a year. Whatever was crazy, we eventually got ourselves out of that hole, which was really crazy because the company, I took that company over when they had zero profit and made money in 15 years, we put one of these together. Yeah. They lived on government grants. So you know, this person, if they wanted to keep on doing what they're doing, they would have to go find the name. The biggest hole they get themselves into is about 17 grand. So they have to go find a loan somewhere or line of credit or whatever for 17 grand. They find that they'll overcome all their challenges. Make sense for everyone. Yep. So I don't want to spend a ton of time on this. I want you just to get to understand cash flow. Like for our team, like pen for penny. This is what this is like pennies. There's a p. There's pieces in here that are absolutely yours. Actually, part of cost of goods, too, with the event venues and all that. The penny's done really an awesome job getting the cost of goods down. You know, that's why for all of us, I'm so adamant about let's get our revenues up by putting the right hearts in seats, you know, and we look at our Facebook ads, we look at all the pieces we do on a regular basis to say what's giving us a return? Are we getting the return we want from each area? And the challenging part is. And you put it's. All of you should write this for formula down. I always use a very simple formula around any cost. So let's just say Jayvin comes to me, says, conor, I want to hire another salesperson in the ambassador program. And that salesperson is going to be, I don't know, call it three grand a month for now, whatever it is. Okay. So he's like, so three grand a month. And he's like, but then you have to bring in three grand. No, the first three grand we bring in that they sell pays them. The second three grand we bring in pays cost of goods. The third three grand we bring in pays expenses. The fourth three grand we bring in. Make your mark. Finally make some money. So when you were thinking about this stuff, all of you like, oh, we'll just hire more people because you think of the three grand, you don't think 12 grand.

Could you say our four steps that you.

With pleasure. So first one is to pay the person. This could be any expense, meaning it could be actually mainly around people. It's the easiest way to look at it. And of course, let me be fair to some of you, and I'll give you the rest of them in a moment. There's administrative roles. You're not there to sell. It's really difficult to bring in. But then sales have to overcome and compensate for all of that stuff as well. So the first one is to pay the person. The second one is to pay cost of goods in the company. The third one is to pay expenses. And the fourth one is when the company finally makes three grand. And I think this is really good for everyone in the office tonight. I mean, for our team, leads and what have you. Absolutely. You know, it's important to know this stuff because otherwise we just hire another person. It's only four grand, only five grand, whatever it is. No, it's not, you know, it's whatever your margin is, you know. And we're fortunate making Mark, our margins are around 60%, which is really good. So we've worked hard at that, man. But last year, last year went down. This year it's gone up dramatically. Why? Because we're very focused on who we bring in. Very focused on who we bring in. And we're getting very focused on client retention as well. That's hence the biggest part of this meeting is retention equals reputation. I want you to realize that more people retain, the better our reputation is. The more people that leave, we just let them go, the more we say goodbye. Like, who cares? For us it's no, we care. We care that they stay with us. That's why I wanted to get you a bit little at least the basics of understanding cash flow because when people phone in, we'll probably end up getting the call a little bit later, which is fine. Is what are they doing to get on these three areas of the company? It's not rocket science. It takes a while though. I'm not turning all of you into coaches. Today there's going to be a two or three day training that's going to come up for the people that decide to eventually become kids. Cash flow coaches, which we're going to have students come on board like what have you eventually down the line to become cash flow coaches, to actually really coach people through this stuff. It takes a lot of work to fully understand this stuff and be so good at it all the time. So my suggestion would be is I'm happy to forgive you for yourself. Look at your personal life. Put all your expenses in your personal life. Put car loans in, payments, pet, your gas, your insurance, whatever you pay every single month, your hydro, your Internet, your cell phone, whatever that you pay every single month, put it in and tell yourself, well, how much do I have to bring in? But then also put in your gross salary and your gross salary, less your tax. Your tax is your cost of goods equals net is equal to your gross profit. And then from gross profit you pay your expenses. Makes people really think my margins aren't very good. Yeah, but it is like, and then you take the stuff like condos and all that kind of stuff that you have rental properties, leading properties, but you put them all in. You put your mortgage payment in, you put your taxes, whatever you taxes, you put it all in. You're like, where do I stand? You know, I have one of these that runs in my personal life and I have. Which is my what I call My net worth spreadsheet. And I always look at where my net worth is consistently every month. Where's my net worth? Is it going up? Staying the same is the worst case scenario. Going up is what I want to grow at every single month. So what am I doing to do that? And I look at that all the time, put some planning together around it, what have you. Because what you put your intention around expands, you know, so put your focus around expands. So I highly recommend playing with something like this in your personal life first. Starting to get used to it. I mean, I cannot tell you. You have to do it. Does anyone see the benefit of doing it? It makes you really think. He's like, I'm going to spend. You know, I eat out so many times a week or whatever. And you're like, okay, what does that cost you?

Do you have a spreadsheet like this for net worth that you cover in my mastery or kind of some simple version?

I could give you one. It'll take me 10 minutes to draw one up.

Should we add that? Because if you have it for Profit Warrior, I wonder, would that be an appropriate thing?

The challenging part is when I get to numbers. Like, you know, I don't know where everyone's at mathematically in this room. But when I do Profit Warrior, I spend the first half an hour teaching basic math skills. Now, when I say basic, how to add, how to subtract, and how to divide buy, because people don't understand margins. What's a. How do you. Which number goes below which number? I'm like, well, you can't have a gross margin of 140%. You can't, you know, it doesn't work. It's always less than 100%. You know, even if you do a service where there's no cost to your service, you still your time to a certain extent, you might be at 98% or 95% graduation gross margin. You can never be 100% gross margin. It doesn't work. Only time would be is if you got given a whole bunch of product and it costs you nothing and you sold it for whatever, then you can be 110 gross margin. So this stuff's really super duper. So I'll look at that for yourself as well, Donna, is to get one. I'll draw it up for you where you can use in your personal life and you'd have some fun with it. Where you can start to really look at. At, you know, where things are at for you. Put your salary in. You'd be amazed by the stuff that comes out. You know, you, you have your salary slips or whatever each month or your pay, what do you call those things? Pay stub. Thanks. Call them slips. But your pay stuff is it tells you what your gross was and what your net is. You know, you put it in your grosses, what your income is, your net is what your cost of good, you know, your care, cost of goods, which is your tax. And then from the what's left, you pay all your expenses with. It's freaking eye opening. And some of you would be like, hey, maybe I should phone my credit card company. Maybe I should get rid of some of my debt. Remember money match. You do that whole debt rollback situation.

Well, it's amazing how many people even I talk to who don't know where they are and they're business owners, right? That. This is phenomenal.

Well, I gave Troy today. Now there's one key piece. I'll shall do it with you and just see if you can get. I think all of you will grab it. There's a big difference between markup and margin. That's the biggest challenge that I see for so many people. And you know, like Troy, let's just say he has a nine. I'll just keep it to his product. He has a bra that he's selling for, that he buys for 50 bucks. And he's. Then if he says, what's the difference here? It's actually fascinating mathematically. Let's just say he has. Let's say he has a bra. That's his business. That's $50. Is the, is the $50 his cost of goods? He pays 50 bucks to some supplier for this bra, whatever it is, okay? Then he comes back and he says, I'm going to mark it up and I'm going to sell it. I'm going to mark it up by.

Two and a half.

Two and a half. Okay, so 2.5 times. So that equals 125 bucks. Am I right?

That's like at Nordstrom that was our average was about two and a half times our cost of goods.

Okay, so your markup is equal to what, how many dollars?

75.

You're right. Okay, cool. Mark up 75, which is your mark. What's the margin? The margin is the product profit, which is 75, am I right? Divided by when I set it for the 125, someone left to do the math for me. So it's three over five, three fifths. So 60%. The markup is 250% margin. 66 copy and blow ones. Coconuts. Because when you look at the numbers. So I bought buy the bra for 60. For $50. I go back to my stores. I'm going to multiply by a factor of two and a half to put on my shelf. So now it's on my shelf at 125 bucks. Make sense for everyone. Okay, so my cost of goods is still 50. So 225. List of 50. I make a margin of markup of 75 or a gross margin of 75 bucks. But my margin is 75 over 125, which is. Yo, that's my profit over. Sorry. Over my revenue over the 125. 60%. So someone's like, oh, but I'm making 250%. No, you're not. You're making some. This blows, people. When I work with clients on this, I had one client get up in the room and walk out. He's upset with me. It's like, oh, making so much money. I'm like, making 60%. I guarantee you, Troy, a certain point line of this stuff happening, too. That's a difference between I do a whole presentation on that. Markup versus margin. Because markup is not the same thing as margin. You know, if you say I'm marking up by, you know, let's say I've marked it up by a factor of 1.5, which means that then $75 is what your retail price is how much profit you're making. Gross profit, 25 bucks. The 25 bucks over what your retail is is equal to 33 and a third. Yet when people say I marked it up by 50%, you with me on that? So I marked it up by 50% because I times it by 1.5. Your real markup, your markup's 50%, but your margin is 33 and a third. That's where people get negative. If they do the math wrong, they don't understand the difference. No, it's only. It's a 50% increase, Colin. Yeah, but your cost of goods don't change. Yeah, so this is the interesting part when people do this stuff is I'll show you one other small piece, then we'll let it simmer, because otherwise you might get overwhelmed. And I don't want to be overwhelmed. Watch how this works. If I have a gross margin of, let's just say, 50%, a nice, pretty healthy, average gross margin for a company. So of every dollar I bring in, half of it is gross profit. And all that from that half that I bring in, I go to Pay my expenses. Everyone with me on that. So here's the interesting part, though. I give a client 5% discount because your discounts come right out of your gross margin. What percent discount am I giving them? You're with me because 5 of 50 is 10%. You're actually giving 10% of your gross margin away. Colin, it's only 5%. No, it's 10% of your gross margin. I can see a few oddballs rolling. There's no such thing as a silly question. Yeah, we have a serve. So now you're like, but, Colin, let me give away 10%. You're just giving away 20% of your gross margin. Brutal. Gross margin is the most important number in your company.

In retail. That's a killer. Because that's what they all do, is.

Discount their money 100%. Interesting. So this is what. So when I worked with Cindy and Scott, they were. They always told me, colin, our gross margin is 50%. Our gross margin is 50%. But on average, they were discounting 10%. So what is really their true gross margin?

30.

30.

So I guess if you wanted to give a discount to a customer, you would already factor that in your planning.

Well, to give them payment terms. Yeah. It's way better to give a client payment terms than to discount the product. There's a different story. Like with us, we have our packages, what have you. There's a marketing strategy between the 92,000 down to the 16,000. There's a marketing strategy around that. The key piece for me, though, is if someone you're with, somebody like, oh, that price is too expensive. Can you give me. We get it at Business Mastery. You know, people sometimes, like, we've. Can we get a further discount? We pay in full. We had it with ladies from Seattle. Yeah, I'm like, no, it's gone from 92 to 16. Like, what else do you want? Yeah, let me take my shirt off my back. Give it to you as well. Like, seriously. Or if I pay in cash or paying cash, whatever. No, you want to discount a substantial discount. You know, so the big part for me is, I want you to think about. This is for Scott and Cindy. When I was working with them, I said, so you keep on telling me you have a 50% gross margin. I told you talk crap. You only have a 30% because all you do, you spend your time doing this. It's only 10%, guys. Only 10%? Yes. Of your gross margin, which is 20% of their gross margin. This is what I call effective gross margin. Because effectively, that's what they're giving. And they discount all the times, all their 21. Well, not 21, but their 20 retail stores. And Mike, now you understand why you're not making money because you calculate everything on this, but really you should be calculating on this. Open their eyes. This is what changed their company to go from negative $900,000 in 2017 to $1.2 million in profit in 2018 purely by getting them to focus on this number. And then I never forget their marketing director, their marketing sales director, Julie, she said to me, because when I left, guess where our Margin was at 38% on average. Substantially more than the 30%, because what's the 8% over 30? 25% increase in margin. It drives a 25% increase in profit. Oh, crazy, man. Crazy. So Julie phones me and she said, but Colin, we have to always go down to the. We have to always give a 10% discount. I said, it's not helping you. Why don't you give an 8%? Why don't you give a 7%? Why don't you give A 3%? Oh, it's either 5 or 10, isn't it? 5 or 10 is a huge number. It's a huge difference. So I never forget Julie. I'll never ever forget that one email I got from Julie and she's like, colin, I think we can bid at 34%. But, you know, or maybe I think, sorry, we could bid at 38. But I think in this one, because it's the kind of climb that it is, we should go to 28. I'm like, that's a huge gap between the two margins. So I wrote back to him, said, just so you know, there are numbers between 28 and 38. And I got back this email and just said, you. There was balls across the email. That was it. I was like, thank you, Julie. Like, it's so obvious. And they bid at 34 and they won the contract. Wow. From 28 to 34. 6%. 6% is 20% increase in margin of what you would have bid on a $50,000 project. Huge, you know, absolutely huge. So this stuff, these gross margins are the heart of business, the heart of companies. The average person doesn't look at them, though, the way they should be looking at them. Any questions? I know a lot to process. So for that business owner, actually we're going to get to that training afterwards. What's this just ask it question? My question is for those business owners that are facing those financial challenges, typically between that 0 to 15k mark, you're saying gross margin is 9 times out of 10 where they, where they, where they're stumbling most of typically. Oh no, most of them are stumbling which is really truly then good sales. That's why they all lower. Makes sense. Yeah. That's why they got no money. Because we are we down here as making marks. Our 697 is down the bottom. Our monthly payment that they pay us, they've got to bring in enough sales, pay their cost of goods and then have enough left to pay us. You with me on that? So our goal will be on the phone with people. How do you get this to go up? We help him get that up. This becomes insignificant. We don't get this up, this becomes a thorn in their side. This is what the whole training is about. Anyone with me on that? You know, like anything like, you know, eventually my dream here, make your mark is like with our team, we do it a little bit already around cash flow. Putting up a certain amount of make your marks cash flow with our team is because I want people to see like this stuff you don't just pay for, you know, it's not just a three grand here or two grand there. Whatever. It's whatever it is. Divide by our margin. Now we're fortunate at make a mark that our margin, our gross, what do you call it, our gross margin, which we're behind, I think it is. Our gross margin is like 60%. So it makes a lot. So a dollar divided by 60% is. We have to make 1.$4 to pay that, to make that $1 whatever. To pay that person whatever it is. It's super awesome. Thank goodness. But there's companies out there. The margin are terrible. Now look at Corbin's company. Corbyn's gross margin is 4%. Wow. His net is about 1.1 feels like. Wow. Corbyn does $50 million a year. If Corbyn did 1 million a year, he would only make $10,000. He has to do 50 billion just to survive. You know, because there's different kinds of businesses, businesses that are high margin, often low volume. Then there's ones that are below margin, like Corbin high volume. Of course. What's ideal high margin, high volume doesn't often happen. Doesn't often happen. Except for cocaine and skin care. Skin care, Skin care. One after cocaine. Now cocaine's margins are crazy. You know, it's like you buy a gram for a dollar and you sell it for $75, you know, or you buy skincare for a tube of skincare for, you know, 70 bucks and it cost them like a. A buck 10 to make it. But it's got Sarah Bakey or someone on the top cover. Most celebrities make a fortune from this.

Endorsements and a gram's more like 30 bucks.

I was just checking who's going to correct me. Oh okay. Just checking. I was waiting for you there. How do you know? Okay, how do you know you're. That was funny. You wore product here. So that's the key thing for me. So back to Javan's comment. We have to get their sales up. So if you took their sales. So let's just say this is take at us. So we're going to get their sales up for them. Give me one thing to get their sales up.

Raise prices.

Increase prices. The easiest ones total for me. Sell to the right people. Here's a challenging part. I see this. Let me just turn this back for a second. Turn it off. So if you look at I get to meet. I never forget the one lady. She was a super nice mom, single mom and she had a product that she wanted to sell and she's like or service. She's like Colin, I'm going to sell the service on some child. Like how to bring your child up really effectively and stop arguing and whatever and conflict in your home and what have you. It was just was like $1,000 a month. I'm like okay, but if you go to a high end area maybe you can sell that service. But to the average single mom with children like they can be most of them aren't making the money they want to make. So why are you after. So they're sending to the wrong people. You know they're going to Jewish synagogues and sending to Catholics. So it's sending to the right people. What else? How can else Previous clients, referrals. So referrals. You understand right? So it's a different one than previous clients. Previous clients and referrals. What else to get sales of can have an offer.

Packaging package deal.

Joint venture. Sure.

Would you do. Would Joy Venture be in that category?

So here's the thing. It's. It's just a would be but I think for now I would keep it at what. So what can we help Troy with on the phone today? Yeah, yeah.

Phone.

Isn't it lingerie, bundles, bundles. I just saw that. This is a hell of it to bundles. So that's what's going to be discussed in the phone call. This stuff's not rocket science. Like it's a matter of now I'm glad we Recorded and chippew. And you see this. Thank you. Is these are the key pieces to how to increase their sales for them. What about your pricing? My pricing is good as it is. You know, this is a big part of this, is what Kieran's been talking about, which is their mindset around their pricing. Self belief, self worth, self confidence. I mean, I went through my challenges with this. I'll be honest with you. When I first started making more, I was like, why would people pay me like three grand a month to work with me? One on one or two grand a month or whatever? And some clients, I'd make like 30 grand a year. And I'd be like, wow, I made a lot of money. Now I charge like 85 to 100 grand a year. And it's. I have no hesitation in doing that. In fact, I think we cheap what we do. You add 697. I want you to really realize this. Every single company I've spoken to in the States says our pricing is too low for what we deliver. So we have to figure this out. How do we help these people get their sales up? Or do we just completely go after the people that can afford to spend time with us? You take some of. You haven't heard the details. You take a capit member. This is not a challenge for a capit member. We don't lose capital members. Why? Because they have the revenue, they have the income. They've got cost of goods, they've got some expenses, they've got some employees on board. They might have some office space. They've definitely got some expenses happening and they've got profit. Some of them are profitable, but some are challenged financially. But the big part is they're not thinking how to get rid of making mark, like how to embrace making Mark more so I can make sure I stay part of the program. That's the best mindset. And I love the name. Gabby's like, well, why don't you call it that? It's called that for a reason. Because you need the best mindset to be part of that program. And it's all getting all of these things, thinking these things through. So, Troy, tell me about your pricing. Troy, where are you hanging out? Who are you selling to? Troy, are you dressed correctly to be in line with what you have? Troy, tell me about your previous clients. Do you collect data when they go to the store? Have you phoned them recently? No. Well, why don't you phone them? Phone all your past clients as though you're sitting in your store with Your finger up your what's the name Waiting for clients to come in. Phone them, phone your previous clients. Have you asked other clients for referrals? Where are you networking when your store opens at 10 o' clock in the morning there's networking groups at meeting at 7am until 8:30. Go mid network. Oh, doesn't work. Will they stay broke? You know what bundles can you put together? That's this. That's exactly the calls we're going to do this afternoon and you might be like oh no no no I just need to get out of the program. It's a different story then it's like you've bought into I need to be out then rather in. That's how simple that is. That gets this out, this for me at best mindset but I don't really focus on for now because most of the time it's just expenses for them. Most of our best mindsets are service based. Once I get this up this becomes insignificant. Life becomes easier. Make sense for everyone. Questions Any other bundles? In what sense?

Well he's selling to people and they.

Don'T want to walk knocking your door.

Because they don't want people singing and.

Going yeah you could sell Craigslist. You could do of course it's Calgary so Kijiji, no one cares about Craigslist and Calgary just so you know that. Okay, so Gigi would be a good one then to go and do look at you know what trade shows, any trade shows coming up or anything else you could be attending. Like the majority of people honestly sit in their offices, sit at their homes and they stress which is freaking useless, does nothing for your business. You know there's, there's no standing your computer screen hoping an order's going to come in when you know you've done no work to get an order going to get out and go hunt like you guys, let's go, you and Cheryl, let's go out and go to board of trade events. Let's go to do networking events. That's how we built the whole make youe Mark was on this. This is make youe Mark. All our networking, you know we sit in the office like what else can we do? Go back to what we used to do. It worked. You know that's a key piece to take all of this and the spreadsheets and you say okay fine, what can I do to do this? Because the rest of that goes away. The pain of the payment goes away. Get them to pop the pain of payment. Get them to pop into the right pop into sales, get rid of that pain on the payment and work on their mindset. Do you see what I'm saying, Kieran? You can work on their mindset as much as you want. If you don't get them doing any of this stuff, mindset's useless. It's like, I'm super excited today about sitting at my desk and what are you doing today? I don't know. What should I do? Have no idea. Because most of these people need to be told what to do.

Has he done any client appreciation parties or.

Andrew, that would be good too.

Post your top 50 clients and have them bring a friend.

Probably not. I think we recommended to him last time.

Is he even tracking who his top spend clients are?

Yeah, those ladies would love that. Like, he would do a little party.

Boudoir thing, but does he even know?

Does he have a spread, a database.

Of who they are?

Who they are? Who they are? Yeah. I have no idea. That's what I'm gonna find out a little bit.

We should ask him.

Yeah. No, that's the whole thing. Like, it's the same as I sat here in this good l room with Dustin from Wicker Tree, and I'm like, dustin, you sat there? So the meeting after that, I said to me, are you phoning your top clients? He's like, I don't want to phone my clients because I feel like I'm selling them. They just phone in to ask them how their furniture's doing and how they wish them a great summer. Is this called client care, Dustin? And he gave me a list of them in the next meeting. He said, you know, and I'm going back to Langley now. And from Langley, I'm going to Vancouver to watch the Canucks. And then from the Canucks, I'm going home again. I'm like, great. So what are you doing back to Langley? What are you doing the way to. To the Canuck game, he says, just driving. Said, you got 10 people, you got. Hey, Bridge, you know what, Mike? Cut the ship, man. Do the work. You know, I was with the client on Friday. I was with, of course, with the guys in Atlanta with Dave and Chris. And Chris. Dave has this opportunity with one of the churches down there called Passion City Church. 25,000 people go to church on Sunday morning. It's a stadium. It's not a church. It's a stadium. It's crazy. And they go to church on the Sunday morning, and they have David and Chris do these kits for back to school, you know, pencils and pens or whatever people need. But the church does a fundraiser and they ask each person in the church to buy one kit. You know, buy something, go to the store, go to Staples, whatever, Buy some stuff, bring it in. We'll then give it to the children that are disadvantaged in Southern Atlanta, or southern. What do you call it in Southern Atlanta. So Dave comes up with this idea. Why don't I get a hold of the church and we put a kid together and people go on their phone and all 25,000 can go click, buy, done. They don't have to spend anything. So Dave. So Dave's like. I was like, great. So, Dave, when are you going to do this? I'll do it. This weekend was Columbus Day in the States. So I'm like. He said, I'll do it Tuesday. What are you waiting for? What do you need to do? I need to connect with two people that can introduce me to the right person there. One's my daughter and one's a very good friend who can connect me to the right person at Passion City Church. Tell you a story. I want you to hear this. This is typical business owners. So you dropped me at the airport today, aren't you. This is a Friday afternoon at like noon. You dropped me at the airport. Yeah. What are you doing the way home? I called him. I can't be texting while I'm driving. I said, don't text phone. You're phoning those two people so you can find the right connection. So on Tuesday morning, you're visiting the person you should be visiting. Guess what he did on your way home? Zero. Then phones me on the weekend. I'm cash flow challenged. I'm like, I just want to say F off. Like, seriously, like, you don't do the work. You can't expect to sit on your ass and get fit. You hired me to work with you. Go make those phone calls. Oh, but you know all the excuses. This is Troy excuses. I guarantee you sitting in a storm, paralyzed with fear of what's going to happen. Fear is going to just kill you. You know, it's our biggest stress in our society is fear and stress. And stress is the shit we make up about stuff. It's like, go out and do your stuff, Troy. Like, go out and meet people and get yourself dressed up. And he was super pumped. After Mastery, we did the call with them. He dressed himself nicely, went out to events. All of this stuff works. Guarantee you he's got depressed about the whole situation. He's back to wearing jeans and a T shirt, frumpy, walking to probably not Even going to networking events anymore. He's like, my business has no sales. No, your business doesn't have someone with the right mindset and the right energy to go out and do what needs to be done. So I've put my love and energy around him. This afternoon, when we phone him that he gets it, let us let him drop out. What does that mean? This goes away from him. This goes away from him. Are we acceptable allowing people to go broke? That's what we're saying to people. Their best opportunity is with us. If we don't get help, where's he going to go? So. So the challenging part is he doesn't have any sales coming in. He's challenged with that. So get rid of the pain. Get rid of the next pain. Get rid of the next pain. So what he's going to do is cut all his costs, and then what happens to him? He has no sales coming in. He goes broke. And that's not fair for me. We get them in the program. Our responsibility to keep them in, to make sure we get this up. So then they.

Is it realistic to expect or ask people to fill out that worksheet like, everybody, best habits? Because I looked on his file, he joined us, it looks like, in February, and we had no realization how desperate this was for him like that.

We did.

We did.

We did.

Okay.

We knew what situation he was in. Yeah. So, you know, there's. And for us, we. It's a. It's their choice. And we always had the event. There's no discussion at the event. You're gonna have to do the work. There's gonna be calls. You have to show up on the calls, do the work, all that kind of stuff. And they're like, yep, I'll do all the work. The hardest part for me is most people don't do the work. Most people want to get rich sitting on a couch.

They buy on emotional high.

But, Andrew, it's emotional high to an extent. You know, we're not like other companies where you've got 10 minutes to sign up for the program or you miss the program. It's like you have from Thursday evening till Friday Evening, you have 24 hours to make your decision. You know, no one's putting a gun to your head saying you have to make a decision while you're there. Only thing I ever say, anyone who says to me, I'm challenged, I go, are you going to put the effort in? Going to put the work in? And if they say yes, I'm like, that's your Choice, then you don't have to join the program. If this person comes to me and says it's a mortgage payment or the program, I'm like, you're an idiot. Go pay your mortgage.

Has he tried YouTube videos?

For what?

Well, what do you imagine? I don't know, but I'm sure there's.

A lot out there.

Just an advertisement type thing. Like, no, say the have to on his toys. That'd be kind of hilarious.

I don't know that he would be there. You haven't met Troy. No, I don't think he would be the right.

Yeah. Cost is a biker. Almost, like, really? Yeah.

I mean, he must believe in them if he's selling them.

Maybe not. Maybe it's just like, hey, I'm selling these things, but I make some money off of.

Yeah, exactly.

You know, I think he might have. I don't know. One of the things part of the discussion would be his biggest thing right now. Path to quickest money. I don't think YouTube videos would be the path to quickest money for him right now. His biggest thing, get out of his store and go meet people and be super well dressed, you know, and maybe get rid of the sex toys in his store and put money online. I was chatting with Gabs last time. We having a really good discussion around this last time. Like, even if he did a client appreciation party, you know, and Gabby got phoned by a friend and said, hey, come with me. I'm going to this large store. And she walked in and the whole thing was all around sex toys. Gabby, be like, this is not appropriate for me to be here. I'm not saying there's nothing. There's something wrong with them. It's just there's certain things in the. Our communities of the way we see it, you know, for all of us. So, you know, I never forget seeing Annette at the sex toy show in Vancouver. And I'm watch out, because all my friends are here. I'm like, shut up. You're here. Like, you can't say you're not here for. You don't want to see anything. Like, you're not blindfolded right now. You're obviously here for a reason. This is a lady that I knew. But if it was YouTube, it would.

Be after everybody's gone to bed in.

The house or whatever. It's just one step away from a porn channel, honestly. So that's what we'll discuss with Troy today. Yeah, everyone with me on this stuff. Our number one thing is we cannot put up with people Wanting to drop out because that doesn't serve them. I think we do them a huge disservice by letting them drop out in some ways. And we're going to probably get stronger and stronger at this. At the events is getting to a stage where people are like, you know what? You shouldn't be in the program. Get more and more caliber, only caliber people in the audience where it's like, you know, because we know there's certain people, when they sign up, there's a high likelihood they might not make it. And there's other people, there's a high likelihood they'll make it. And then there's people in between that you're not sure where they're going to do it. Like, if you look, if you took Marcus, Marcus would have been a high likelihood not to have made it. And in eight months, seven. Eight months, 40 grand a month. Yeah, he's an anomaly. Absolutely. Yeah. We have other ones that are high likelihood to make it and they fail miserably. You know, another anomaly. So it's like we don't. I don't think it's our, our right to choose who we bring into the program. My number one thing though, if someone tells me mortgage, I'm like, you pay your mortgage, you pay your rent, you do whatever you have to do. You do not join our program and then figure out, you know, like, we have clients that join and in the first week they've watched just about every video. Like, I'm crushing this. And they're gone. Because I can see the ones questions online on the academy and I'll answer all those questions. And there's other people. Like, my next course is only in six weeks.

That's too fast.

It was like, what do you need help with? I'm battling with sales. You have an exit to the academy. I don't like online training. Shut up. Like, you can't complain and then not do that. You have, you have like, you know, it's like having a media. I never get an. At an event that I was at, the guy said in the washroom, you know, it's like at an event on stage, in the washroom is a million dollars in cash. And on the count of three, I want you all run into the washroom and go fight for the money. Cash. The first one I get it, has it. And he's like, I'm not going to count to three. He goes, one, two. Sit down. Here's the deal. There's a million dollars out in the world right now. How many of you Fighting for it. Because you were to run to the washroom like a crazy idiot. Why don't you do that for your business? I was like, wow, that's a great analogy. Because the average person. But yet if you feel in their seats, go, I probably won't make it. I'll wait for them to come back. I'm not strong enough. I'm not weak. I'm too weak. I can't fight through those people. There's people bigger than me. Every excuse in the world, why not? They have the million bucks as opposed to, maybe I should go through the roof while they're all running. Jump through the roof and get it. And I don't have to be a big person, small person, fat person, thin person. Just have to be smarter. You with me on that? It's like, yeah, it's like, unfortunately, average business owner is full of excuses. And sometimes when you, when you spend enough time with this stuff like this, you're like, it's easier just to stay with, make your mark than become a business owner. Honestly. Cuz it's quite crazy. It's like it takes a lot to build a business, a shit lot to build a business.

And I wonder how many people are really open to self examination. Like when you put all the numbers out there, out there, like it's very, it's like going to the doctors. It's like a physical, right? It's a financial physical essentially.

Right.

And like when I do, like I've done this for a couple people, like gone and did a quick online presence audit and it's like how open would they be to actually hearing feedback? Like the two that I did, like they're atrocious. I mean I wouldn't say that to them, but it's like in my head I'm looking at this going, how do you even make sales with what you've got going on right now online?

For some people it's, I mean, sadly enough, Donna, I'll say we live in a zombie. There's a thing, there's a phase to life right now called the zombie phase. People have so much debt, they go, if I got broke for 50 grand or I got broke for 500 grand, who cares? Others keep on getting more debt. And it is because the average person lives from paycheck to paycheck, if that. Some people there's more month than there's paycheck.

So they just numb it out.

So basically we're the ones who have to wait the month. Yeah. So that's been the big thing for me. Nothing would drive me more. I don't know where everyone in audience. We need for this audience and our team is financially, at the end of the day, if all our team was massively financially abundant in every single way and form, which some of you might be already, which is awesome, and some of you maybe not is let's get ourselves financially abundant and then it's easy to help the students. You with me on that? It's really important. I'll send the spreadsheet out. I'll build it this week and I'll send it out. It's a simple spreadsheet and just you have spend some time looking at your own stuff. It's fascinating. Quite fascinating.

Is Troy calling us or we call him Troy. Oh, it's three.

Okay. Is my phone there? My phone's in office. We go grab it. Are you grabbing a chair, please, while you're down there? Thanks. Anyone to listen to it? I don't know where it's going to go. We'll just go with the flow and put the intention around. It's going to really help him. Sorry. Was it helpful for everyone? Yeah. All right.

Took me back to my university.

And.

Like, it took me back to like.

My like the classes I took at school and I was like, I. I know this, but I forgot this. This is. This is a hot life. Unfortunately, because money is a current money. Money is our currency, but it makes the world go around. You know, you can say love people and give and be gracious and like absolutely. Same time, though you need money, you've got to pay your rent, pay a mortgage, you know, put a roof over your head. Right. Put a roof over your head and doesn't take around money unless mom and dad are rich, which I don't have.

And you'll create a personal cash flow, one for the staff office to use for personal experience for sure.

And then the same thing, we could actually use that one to send it out to our clients and say, hey, look at the spreadsheet. If their personal side is shocking, the chance of their business being good is pretty slim. I've got a phone number.

I'm just going to use this chat time again. Any yogurt too?

Do you have S system Yogurt bar.

Do you want a yogurt bar, please.

Have you got any?

Yeah.

It's a different way of looking at it.

I always make a budget.

I know.

I've heard of people doing like the envelope system where they take out all the cash at the beginning of the month and like you spend 800 bucks a month on groceries. You put 800 bucks in an envelope, and when all that money's gone, there's no more.

Like, that's it. Yeah. What's Troy's last name?

So, Raskin. B L A S K I N. Oh, I don't.

I don't do that. I'm gonna go on the phone here, so if we put on speaker. So we just keep it across. Sorry to interrupt, everyone. Let's put attention around. It's going to be awesome for him.