I was reading an article Entrepreneur.com published and BAAM!! I was immediately reminded of a HUGE opportunity to share with our DYB Community. Knowing this one number will help you close more sales. I’ll get to how it does that, but first…why do you need this number??
Sales are for show, profits are for dough!
This number is going to tell you your net worth,
if all the world collapses in your business and for some unforseen reason, you had to stop business FRIDAY (each week), where would you end up? Would you be $6K in the hole and owe money or would you land positive $100K?
Do you enjoy end of the world movies? There seems to be a lot of them. By playing this game, “WHAT IF THE WORLD ENDS ON FRIDAY?” every week, when we owned Burnett 1-800-PAINTING, we knew exactly what kind of pulse we had – strong or weak, in debt or financially free.
This app is called Ledger by Gladding Development in the Apple iTunes Store.
I go over it in detail within the 30 Hour Work Week online training program we’ve created,
is easy to use and gives you a REAL TIME PULSE of how healthy or unhealthy your business is.
We’re talking a real time pulse on our painting company where we played the above mentioned game.
Anyone in business for themselves can tell you, as Darren Hardy’s new book so truthfully explains, business is a roller-coaster ride and so it can be with cashflow. The game is won, when you have a positive net worth each and every week, with a growing retirement account of your own.
Let me tell you about a client.
Once upon a time, there was a client who was very nervous and felt very scared about his finances.
“Let’s see where we stand,” said the coach.
Client looked very scared.
They worked together to put the app in place and looked over the numbers. Positive $3,000.
“Doesn’t it feel great to just KNOW? What a sense of control!”
The coach continued, “Let’s say you were negative $3,000 after this exercise.
Imagine how EMPOWERING just to KNOW and then tackle the situation day by day, sale by sale.
But NOT knowing is what is truly scary!! Even if you are negative in net worth, if you know exactly by how much, you are then empowered to do something about it!”
“Yes,” said the client, “I do feel better! I don’t need to feel scared and out of control. I KNOW and now I know exactly what to do to increase that number even more!
Sometimes we hide in the dark thinking it is safer than coming out into the open and
KNOWING whether we should be afraid or not.
It’s like cowering in a dark corner hoping not to be found verses running (albeit afraid) to the light switch and exposing there is nothing to fear –
or maybe there is a mouse or a raccoon in the house, but at least now you know and can DO something about it!
Wow! Empowering!
The bottom line is that the net worth (of your business) is income minus expenses.
This is broken down into a few Income categories and a few expense categories.
Income Categories:
Business Checking (NOT what the bank says online. The balance on Friday, after the bills for the week are paid and checks that are out, assumed cashed when written)
Business Savings
Cash (on hand/in safe)
Burnett Bank and Trust (aka: Your Name Bank and Trust: Do not borrow from the bank, create your own “loan” using money you have auto-dripped out of your checking into a separate savings account.)
Receivables (not yet collected)
Paint Bill Savings
Expense Categories: keep it simple
Deposits Collected (because if the business ended Friday, you would need to give these back on jobs not yet completed)
Paint Bill/s
Payroll
Auto-drip (money automatically “dripped” from checking to savings each week)
One of the things I love about this app, is that whether you are a details person or you are not, you are going to love the simplicity of this app to tell you exactly how healthy your business is or if your business needs to start “working out.”
It is simple enough for the non-details person, but VERY ACCURATE for the details person.
Okay, so how does knowing this number help me close more sales?
I’m so glad you asked! Another story to illustrate…
Steve and I were painting a room in our home. Business was good, but not flowing.
Steve asked what the Ledger (App) Balance was.
I told him.
He immediately took out his phone, opened the app we were using to track leads at the time, Base, and looked up who he could call to follow up on.
King or Queen of follow up wins, remember?
He followed up, asked for the sale, and closed the job.
Why did he have such urgency to follow up and more “mo-jo” to act??
Because he knew the most important number and it was a catalyst to act! To take charge! To follow up! To win!
You can do the same.
Use the App, get the Ledger Balance daily, know your number, and win!
Use, know, win!
You’ve got this!
And, remember, we are here to help you succeed!