7 Key Numbers that Drive Cash Flow - Control Your Cash Flow Now

Achieve Consistent and Predictable Cash Flow... 

Using these 7 Key Numbers

In the short 8-minute video below you'll discover a system of business management that, when applied, virtually guarantees that you'll always have the cash flow you need to not only survive, but thrive - in any market or economy... and NEVER have to worry about making payroll, keeping up with bills, or paying yourself.

These concepts are based on sound business practices that any business owner can quickly learn and apply... And that no business owner or manager should be without.

I look at 7 Key Numbers. When I do, I see stories; I see headlines.

The numbers are there in plain red and black. They tell anyone who bothers to look, exactly what the business needs to do next. My success comes from the fact that I learned how to read those numbers, and I developed tools and techniques to help other people read them as well.

But, that isn’t the whole story. I also discovered how to give those numbers massive power with what I call the ‘8 P’s or Pillars’ and ‘6 Success Factors’ that are common to all thriving businesses. I still use these tools today to evaluate businesses and opportunities and to maintain control of my current businesses.

So here they are, the 7 keys to the kingdom:

#1. Number of Leads

The first number is the Number of Leads coming into your funnel. Since all income comes from customers, you need a consistent, healthy stream of new prospects entering your pipeline. The Number of Leads measures this stream and will tell you how effective your marketing is. The better you are at getting new leads, the faster your business can grow and the healthier you’ll be.

#2: Conversion Rate

This measures the number of leads that actually become customers. This number will tell you how effective your sales process is. This is a critical part of your income stream. Since most of us love to do what we started our business to do – but hate to sell, this is a number we tend to overlook. Don’t make that mistake! Too many businesses are great at marketing and poor at sales. Remember this, no sales, no money.

#3. Customer Retention Rate

That is, how many current customers will continue to do business with you after the first transaction. The more customers you keep, the less new customers you need to get. That could lower your costs per transaction. When you form a relationship with a customer, are they a ‘customer for life?’ Or do you think of it as a more short-term relationship? Even high-ticket buyers, like auto and homebuyers, should be looked at as long-term repeat buyers. After all, you want your business to be around for the long haul, don’t you?

#4. Average Number of Transactions

Number 4 measures how many times during a given period of time will a customer do business with you, or the average Number of Transactions per customer. Again, too often we think in terms of one big transaction. Think of your local auto dealership, though. They sell a car for a large dollar amount, but they offer parts and service that keeps buyers coming back on a regular basis. In fact, that dealership makes more on the subsequent transactions than they do on the sale of the vehicle! Homebuyers purchase a home, but then often there is remodeling, additions or even routine maintenance that can add to your bottom line.

#5. Average Transaction Amount

Number 5 measures your Average Price or Ticket per Transaction. In any given visit, how much will each customer spend on your goods or services. If you measure that, you can begin to answer the next question, “What can I do to make that number bigger?” Is it by raising your prices or selling more goods and services every time you work with that customer.

So, numbers 3 through 5 tell you the lifetime value of a customer. If you’re not totally in tune with that, then you’re really not thinking long term. Measure and manage your lifetime value of a customer and you’ll see your business steadily grow.

But, there are two more numbers you need to consider. Numbers 6 and 7 have to do with how efficient you are at doing business.

#6. Variable Costs

While the first five numbers address the money that comes into your business, #6 measures how effectively you use your resources in purchasing, producing and fulfilling your customer’s purchase. And frankly, failing to monitor this number can sink a business fast! But fortunately, I’ve learned some business-saving ways to control variable costs that can work for any business, and I’ll be sharing these as part of this program.

#7. Fixed Costs

This measures your general business overhead and expenses. Finding the right balance between location and rent or mortgage, for example, can be tough. Do you base your decisions on past business or potential business? How to do you know when it’s time to increase your investment or to cut back on overhead? Those are important questions, and fortunately, the formulas I’ll share with you can help you get and keep control of your overhead and expenses, and help you make the right decisions time after time.

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