Profit Made Simple: Part 4

Every entrepreneur knows their business should be profitable. Obvious, right? This is the final part of our series on expense ratios. If you aren't caught up yet, check out my first three parts. Because whether you're making 50,000 a year or 50 million a year doesn't matter. This is going to bring you into consistent profitability when you implement it in the right way. And I know this because I run 17 eight figure companies inside a $200 million portfolio. And yes, they're all profitable. At this point. The we've defined our profit first, we've categorized our expenses and we've determined our target spend in each category. So now if we want to make the business profitable, it's really pretty simple. We need to talk to our team and we need to find out what is the typical spend per category and then we need to reallocate. You might arrive at this step and think, wow, I'm seeing a lot of red. We are really overspending in some of these categories. And that's right. Just start with the areas that are the most overblown. What matters is that you reallocate to make sure that the actuals match the targets. If you do this, you're going to find that almost like magic. There's more money left over at the end of the month. The profit happened because the profit was planned ahead of time. And that's important. Profit doesn't happen by accident, it must be planned. And look, if you want the sheet that we use to do this just comment ratio and we will send it over to you right away.