Is it time to rethink things?

“Shunryu Suzuki Roshi, a great Zen master, said, ‘In the beginner’s mind there are many possibilities; in the expert’s mind there are few.’ Beginner’s mind is a mind that is open, eager to learn, an empty cup. With beginner’s mind we can learn from everyone and everything we encounter.”

— From the chapter “Empty Your Cup”  in ZEN GOLF: Mastering the Mental Game

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This is from Dr Joseph Parent, my guru in golf and life!

With business conditions the toughest since the GFC, many business owners are suffering; business is tough. For the first time, many business owners cannot solve the problems because they are problems with costs, not revenue.

‘Turnover is Vanity, Profit is Sanity’. This is my business mantra! 

For the first time, business owners are stuck with a situation they can’t fix by selling more. If they do, they are making the problem worse. The cost of acquisition is now higher than ever. Digital is no longer cheap and is unforgiving if you get it wrong. With all of this mind, perhaps it’s time to rethink things…

Do you know the key benchmarks for your business to be profitable? 
  • What is your Cost of Goods Sold percentage?
  • How much can/do you spend to acquire a customer?
  • What is your annual spend per customer or lifetime value?  
  • What percentage of your turnover goes to team costs?
A rule of thumb for most businesses is:
  • 1/3 wages (or your sales should be three times your gross wages cost)
  • 1/3 costs
  • 1/3 profit (or you should be making 30% profit)

You can be the greatest marketer in the world, but if you don’t know your numbers, you will fail, and sometimes it isn’t fast; it is a slow, debilitating decline.

Maybe Dr Joe’s quote is your answer: a new set of eyes, someone to look at your business from a different angle. I am always happy to chat with people about this. I am passionate about helping business owners scale profitably.

If you want a new perspective, get in touch with the OMG Digital team! Your knowledge has got you this far; maybe a different view will help take you to the next level…