Deep Dive Into Knowing Your Numbers

 Are you working all the time, but it doesn't seem like you can get ahead or just enough money to pay the bills but not any leftover to pay yourself? You are not alone; countless business owners struggle and don't know why. They work really hard, but it just isn't paying off. Stephen has been where you've been, but he made the leap from surviving to thriving, and you can too! In this episode, Stephen gives you the nuts and bolts of figuring out what's my break-even cost, how much should I charge?

 Three different business costs categories

Fixed costs (examples)
 Owner's salary, rent/mortgage, utilities, debt payments, advertising, marketing, administrative payroll, taxes, insurance, office supplies, business education, trade organization fees
Variable costs (examples)
 Vehicle repairs/maintenance, fuel, tires, registration, consumables- grinding disks, welding gas, saw blades
Direct costs (examples)
Materials, supplies, labor, equipment rental, dumpster rental, subcontractors, freight

2 types of hours

Billable hours- hours billable to a job
Nonbillable hours- billed to overhead

Example*
Fixed costs + variable costs = $15,000 per month overhead
3 Feild employees work 40 hours per week
3x40= 120 x 4 weeks= 480 + owner's hours 120 per month= 600
$15,000 overhead ÷ 600 total billable hours = $25 per hour
3 Field employees paid $15 per hour x 480 hours per month = $7200

Overhead $15,000+$7,200 field employees=$22,200 ÷ 600= $37 per hour break even

*This is only an example your's could be more or less

#3 Where do I start? Start Here

Rabbi Daniel Lapin

1 Timothy 5:18
“You shall not muzzle the ox while it is treading out the grain [to keep it from eating],” and, “The worker is worthy of his wages [he deserves fair compensation].” 

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Transcript

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Unknown Speaker : 0:06

Hello, and welcome to this bonus episode of pull up and thrive. I am so excited to be here with you today. I am your host Stephen Capps. And on this episode like every episode, I help overwhelm business owners overcome adversity, so they can avoid the crash and burn and have the life and business that they want. Now, this episode is very spontaneous. So if it sounds spontaneous, it's because it is. Now I've been stewing about something. I've had something rolling around in my head or it's been rolling around in my heart because that's where everything comes from on this pull up and thrive podcast. So I've been stewing about something and a girl in our office yesterday sent me off. Now if I've been stewing about something and you say something that sets me off, you're going to hear about it. Our little town Marshall, Texas population 25,000 stagecoach Coffee Company is our newest coffee shop here in Marshall. Congratulations. Welcome. Now we already have two other coffee shops. We have Joe pines, which is owned by Jeffrey and Jill Davis and rNr bakery, which is owned by will, and Shawna Putnam. If you need some good coffee, go see these people. So rNr bakery serves Starbucks coffee, so if you need a Starbucks goat on our bakery, well, Starbucks is opening a location here in Marshall. And I would say there'll be opened in probably about a month. Now, I don't know that. But they tore down an old gas station and you know how these things go when a big franchise comes in. They tear down the old business and they're up and running in life. A month. So the three things I want to talk about today I guarantee you Starbucks will be doing and you can do them to to dominate your local market. The things that small business, local business non franchise businesses, the mistake that they make is, well, we will be cheaper than the big name brand. And people will buy from us because we're cheaper. That's not always the case. And then you put yourself in a bad position because you're not charging enough. So one of the girls in my office mentioned yesterday that the line at stagecoach Coffee Company in the drive thru was out to the street quick, which I think is awesome. That is awesome. But that's not what I said, because I've been stewing about this for a while. And the first thing that I said was, I hope they have their stuff together. Now I don't know them. This isn't a judgment against them. Because what you see so Often with independent or non franchise businesses is that they rush to open and they're not ready. There was a local pizza restaurant that opened in Marshall probably 15 years ago. I don't know if I don't know if you remember them if you're local but pitstop pizza. They had a NASCAR theme they had. It was a huge space with a big arcade. And it was an IT WAS nicely done. But they rushed to open the beat the CCS pizza that was opening in the same area. They beat CCS to the punch opening, but they were out of business in like three months. They opened too fast and they weren't ready. And 15 years later, cc's pizza is still here. So you have to have three things to dominant in your local market. Are you ready? write these down because these are important. This is how our business TX gates does it. This is how you can do it too. You have to be quick. You have to be accurate, and you have to be remarkable. With your service or product. It sounds super simple, but hardly anyone does it. But if you can do these three things, you will dominate your market. When people are in a hurry, and they come to your drive thru, you have to be quick. And then the order has to be accurate and the drink has to be right and the size has to be right and the change has to be right. Don't mess this up. The drinks and the menu must be remarkable.

Unknown Speaker : 4:43

Because if it's mediocre and safe, why would people waste their time. I mean, I can run to any hole in the wall convenience store, run to the fridge, grab me a drink, throw my $2 on the counter and go because I'm in a hurry. Now I was at a flea Some time back and it was lunchtime and I was starving and there's all these vendors and everybody's busy. You know, all these food vendors, everyone's busy, so you got to choose. So I was hungry for barbecue. So I wait in line for 30 minutes to get me a brisket sandwich. Oh man, you're just dreaming of the, you know, juiciness and the slow this is going to be smoky and spicy. You know what's gonna be remarkable. So I wait for 30 minutes. And the standard was like 10 bucks plus chips and a drink. So I get it. And what did I get? What I got was hot meat on soggy bread. Not remarkable. When you are quick, when you're accurate, and when you can be remarkable. You can charge what you want. Now this doesn't start when you Open the doors for the business. It starts before that. You need a mission statement that's clear and precise. This is why we exist, which you can go back to Episode Three. And I break that down. You need to have written core values. And then you hire and fire by both by your mission statement by your core value. And then you need systems. This is exactly how we make the drink every single time. This is how many napkins we put in the bag every single time. Whenever you go somewhere and have an amazing experience. None of that happened by accident. None of that happened by accident. You have to hire the right people based on your mission state And your core values. You have to put systems in place. And then you have to communicate and train the systems over and over again. Because whenever customers are excited, and there's a line around your building, the expectation is high. And I want local businesses to win. I just don't want you to do well. I want you to dominate your local market. I want you to do such a great job that the big boys can't hang. So if you know me and you listen to any episodes, the number one thing I say, is no excuses. Well, they have all this money there. They're a big chain. Well, that sounds an awfully lot like an excuse to me. The thing with a big chain and a big outfit is that they move slow. They're like a slug as far as making changes, but a local independently owned business can make changes quick and adapt, do these three things. Be quick, be accurate and be remarkable and you will dominate your local market. If you have any questions or there's any way that I can help, especially locally, please message me on Facebook at pull up and thrive. I hope this has helped you because that is why I do this to help you. So please rate review, share and subscribe. Wherever you listen to podcast. This is Stephen Capps. Til next time, you're the best.

Unknown Speaker : 8:44

You've been listening to pull up and thrive.

Unknown Speaker : 8:49

We'll be back soon but in the meantime hook up with us on Facebook and other platforms and pull up and thrive. Eleanor Roosevelt once said learn from the mistakes of You can't live long enough to make them all yourself. Ain't that the truth? Till next time Transcribed by https://otter.ai