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You Will Stay Poor If You Don't Understand These Equations | Ep 527
The Game w/ Alex Hormozi
Analyzing Business Growth with a Simple Equation
The equation for analyzing business growth has three variables: number of new sales per month, lifetime gross profit per customer, and hypothetical max revenue. By comparing hypothetical max revenue to the current sales velocity and lifetime gross profit, one can determine if a business is growing or shrinking. If the current revenue is less than the hypothetical max revenue, the business is growing. If the revenue is equal to or close to the hypothetical max revenue, the business is maintaining its sales. This equation allows for accurate predictions about future growth based on past performance.
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