Question 1: Profit (4:45)

With that in mind,weI might start with that first one, Profit. What we’re talking about there is how much you’d like to take out of the business in the next 12 months. Whether that’s 100 grand, 200 grand, 300 grand, but putting a target or a number down. Yeah, something to aim for.

BEN: Yeah, it sure is. It’s a strategy where, for every dollar that comes in the business automatically you put a few percent straight away into a separate profit account. You don’t actually put it in there, pay your expenses and then whatever’s left is your profit. If 10 grand comes in, you put automatically $1,000 into your profit account. Just like many people do with GST, automatically over to the side. Profit’s out first and then whatever’s left is to pay your expenses with.

HARVEE: Yeah. It’s quite reminiscent also of the Richest Man in Babylon, that was the classic personal wealth process in terms of paying yourself first. Why couldn’t that same idea apply to a business. Yet, I don’t think many people take the time to question, well what would a beautiful lifestyle look like? What would that actually cost? Therefore, how would we use our business in such a way to specifically fund that very clearly defined lifestyle? This is what lifestyle design is all about. Ben, just on that, once you do pluck whatever your magic number is, what form and effect might that have been to what the sales team might do today or what team we might have working in the business day to day?

BEN: Yeah, yeah. Once you know your profit, and this doesn’t have to be a crazy process. Harvee and I did this on one eight four page with the iPhone as a calculator. We got the profit that we wanted to each take out of the business, all the expenses to run the business, and that gave us an overall revenue target. Now if you’ve got an idea of your average client value, let’s say that’s 10 grand, and let’s just say 300 grand was your revenue target, then you only need 30 clients to deliver your profit target and pay all the bills. Then, with that 30 clients in mind, your marketing and sales team can say, “All right, well how many do we need a month.” That’s their KPIs to achieve the business’ and your lifestyle and profit goals.