One of the questions that I get frequently that comes up from so many business owners is:
How do I know how much I’m supposed to spend every month on marketing, on payroll or even how much I’m supposed to pay myself?
The answer to this question is one word. Percentages. You need to be operating your business on a system of percentages. When you implement a system of percentages, you’re always going to know. It’s really going to take the guesswork out of these decisions. What I mean by percentages is let’s say your marketing budget should be 10%. If you operate your marketing budget based on that percentage, it answers the question, it takes the guesswork out and guess what? As your business grows and it scales, the percentage can stay the same.
Percentages are not going to change, whereas a flat dollar amount will change based on the size of the business, but to have a 10% marketing budget, that’s not going to change. So, where do all of these percentages come from? Well, you can learn all about them in our Profit Plus program where we teach business owners what these percentages should be. We actually take you through what your current starting percentages are, what your goal percentages should be and we make a plan for how to get from where you are now to where you really want to be.
When you learn the percentages that you need to run your business, it’s going to empower you to make smart financial decisions forever. But that really and truly is the key is percentages, and you can run your entire business on them. It will make your life so much easier and it will make your business run so much better.
What’s Next: Do you need help? Schedule a call with a Profit Advisor. Our complimentary one-hour session is the first step towards having a financially solid business. Schedule a call today.