Remember the Five keys to running a business

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The Five Keys to 7 Figures

[/or_column_text][or_spacing height=”30px”][or_column_text] Everyone has ideas on what their trades business is.   [/or_column_text][or_spacing height=”30px” __name=”or_spacing”][or_column_text] Everything from a product or service or even a method of delivery.   [/or_column_text][or_spacing height=”30px” __name=”or_spacing”][or_column_text] But when you take away everything else, your Business is nothing more than five things. [/or_column_text][or_spacing height=”30px” __name=”or_spacing”][or_column_text] Revenue – the price for your product or service you provide, multiplied by the number of times someone bought from you, otherwise known as total sales. [/or_column_text][or_spacing height=”30px” __name=”or_spacing”][or_column_text] COGS (Cost of Goods Sold) are items you had to buy and then re-sold.  These are expenses such as materials (what you paid before freight and delivery) or direct labor.  (the direct labor is calculated at what you paid that employee for that hour before burden, for example, $25 per hour) [/or_column_text][or_spacing height=”30px” __name=”or_spacing”][or_column_text] Variable Expenses are similar to COGS.  These are expenses that are incurred directly as a cost of doing business and this Expense category increases or decreases with the amount of business you do.  A great example of this is Fuel for your work vehicles.  The more you drive, the more fuel you buy, and if you don’t drive then there is no expense.   This Category is associated with everything it takes to deliver a product or service aside from Direct Labor and Product costs. [/or_column_text][or_spacing height=”30px” __name=”or_spacing”][or_column_text __name=”or_column_text”] Fixed Expenses are expenses that don’t change based on revenue.  Things like rent, utilities, salaries, telephone bills, payroll expenses and most importantly, what you pay yourself. [/or_column_text][or_spacing height=”30px” __name=”or_spacing”][or_column_text __name=”or_column_text”] Net Profit / Profit is what is left over after everything else is paid for.  Keep this in mind.  If you currently pay yourself fair market salary for the work you do and there no money left over, then YOU ARE NOT profitable.  You have to pay yourself before Profit can be calculated, (and it has to be fair market value for your position). It doesn’t matter how your accountant calculates it, (remember their job is taxes) it matters how YOU do it. [/or_column_text][or_spacing height=”30px” __name=”or_spacing”][or_column_text] Everything else you do in your Business, what you sell, how you sell it, when you sell it, how you hire, what you do, what you buy, ALL of it, comes down to these five keys.  These 5 Keys, have to drive every decision you make in your business. [/or_column_text][or_spacing height=”30px” __name=”or_spacing”][or_column_text] When you know how to turn these five keys and when you fully understand how to use what they control.  Then 7 Figures is just the beginning.   [/or_column_text][/or_column][/or_row]