We’re going to talk about the FIVE NUMBERS THAT MOVE THE NEEDLE.
How Much YOU Make As The Owner
This is the one that matters most. If you’re not making money, then you have a hobby, an expensive one that takes a lot of time.
The juice has to be worth the squeeze.
Profit
Revenue means nothing. Has much is on your tax return for profit? How much does the company make after expenses?
Cash Reserves
If your household was on a week-to-week budget, you could be financially devastated in short order. You need to build a war chest. We like to put away 10% of our revenue into reserves to mitigate downturns in the market or perhaps use to purchase another company in the future.
Market Share
Of the X amount of companies in your space/area, are you one of the top few “top of mind” companies in the area?
Company Valuation
What is the company worth? What is the stock valuation? This is worth doing every few years as if you were thinking of selling it, even if you don’t.
