So, You Bought a Franchise. Now What? by David Roemer

Author:David Roemer
Language: eng
Format: epub
Publisher: Business Expert Press
Published: 2022-05-14T00:00:00+00:00

CHAPTER 6

Making Money—Know Your Numbers

Profits are better than wages. Wages make you a living; profits make you a fortune.

—Jim Rohn

If you are a first time or new business owner you may read the quote from Jim Rohn above and think “Boy I sure hope he’s right.” If you are an experienced business owner you might read that quote and your thoughts could go either way. You may think Mr. Rohn was right or you might think he was crazy depending on your experience. I can tell you without question based on the numerous examples of successful business owners that Jim Rohn was absolutely right when he made that statement. No one ever got rich from wages alone. Even the CEOs of big corporations earn most of their money from bonuses and stock options, not salaries. Profits are where it’s at.

Profits are also the by-product of everything else you do in your business. There is a reason the profit line on your profit and loss (P&L) statement is called the bottom line. It is called that because it is the end result of every other action, number, and result in your business. The decisions made when determining your purpose, setting goals, building your team, building sales through customer loyalty and local marketing, and every other aspect of your business determine profits. That’s why I have and will continue to espouse the notion that if you focus on making good decisions in all the key areas of your business, profits will come. Don’t focus on making money. Focus on doing the right things right.

Beyond all that, the key to making money is as the chapter title suggests, knowing your numbers. Every business has key numbers that must be tracked and evaluated. As the owner, you absolutely must know what those numbers are and must know them like you know your name. It was always shocking to me when I asked a franchisee how sales were last week and they didn’t know. If business ownership was a college class, knowing last week’s sales and how they compared to the same week last year and two years ago would be right at the beginning of the course.

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