The Dropout Multi-Millionaire 37 Business Lessons on How to Succeed in Business With No Money, No Education and No Clue by Unknown

Author:Unknown
Language: eng
Format: epub

CHAPTER 12

P&L BY PERSON—OH NO, HERE COMES THE

MATH!! AND MORE SCIENCE

“It’s not what you pay a person, but what they cost you that counts.” –Will Rogers

In this chapter, we are going to do some analysis on the income side of your P&L. Remember, everyone who works for you is either in the income or expense column.

Have you ever analyzed your workforce in this way?

Have you ever thought about the fact that each salesperson has their own individual P&L … and that individual P&Ls flow up to the overall P&L and make up your success or failure?

I call running your business in this way “Managing your company from the bottom up.”

Are you ready to do some math?

I can already envision some of you rolling your eyes and thinking…

MATH … I hate MATH… While I understand that sentiment, you need to understand that the math is critical to your business.

If you’re a math person, you’re gonna love this section… If you’re not, your eyes are going to glaze over.

However, if you’re not a math person, you REALLY need to find someone who is and have them do the math and give it to you in easy-to-read snippets so you are aware of what’s going on. This will allow you to make quality decisions about what you need to do to either fix your issues or get better at what you do.

My favorite thing about math is that it doesn’t lie. The numbers are what they are. They will tell you everything.

I am going to start getting a bit more technical in just a moment but stay with me here. What I am going to cover next is usually better taught on a whiteboard, but since we can’t do that here, I am going to try to make this as simple as I can.

What we go over in this chapter applies to any organization of any size

with salespeople (people in the income column).

I have done this with small companies and HUGE

companies; the largest was a $2 billion insurance carrier.

In the following example, I was hired by a company on the West Coast to come in and overhaul their operations. They had about eighty salespeople working for them at the time, as well as an entire floor of support staff. They were doing probably $50-60 million annually in sales. On the surface, they looked quite successful. But this company was like most companies I find; they had the data needed in various reports, but nobody was watching it or learning from it. They were not profitable.

Before I get into the details, we first need to establish some background information for this exercise.

The sales activity in your organization is broken down here into several parts for clarity. For this part, we will discuss the math behind: Sales leads

Sales calls

Close rate

Sales Leads

I am discussing a telephone sales center here, but these numbers could just as easily be converted to an outside sales organization. If you aren’t sure how to execute this, you need to find someone who can consult for you and set this type of tracking up.

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