Topics Covered in this Episode
- We discussed strategies for maximizing business profit, emphasizing the importance of margins and differentiating between agency and training business models. The cost of goods sold is mentioned as an ideal 25% to 35% for healthy margins.
- We emphasized the importance of reinvesting in the business to prevent burnout, suggesting taking 25% of leftover money for reinvestment.
- We discussed the three ways to get paid: salary, profit, and book value. We also highlighted the distinction between a startup and an agency business model.
- The conversation moved towards expenses, stating that they are the major expense in the agency world. It suggested strategies for retainer consistency of revenue and discussed the importance of revenue projections for predicting profitability.
- Finally, we discussed strategies to qualify leads and choose who to work with, introduced the "fruit tree" analogy for business profit, and wrapped up with Mercer's thoughts on profitability.
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