Hey there,
It is Matthew Larsen, back with my daily newsletter.
Tracking is going to be a recurring theme in both my personal and business content.
If I asked you almost any core metric in your business, you should be able to tell me off the top of your head or find it within 30 seconds. You should know that the number is accurate and up to date.
This describes less than 1% of the businesses I’ve ever talked to.
The problem is that almost everybody thinks they’re doing better than they are. They underestimate their churn, overestimate their net margin, and underestimate their customer acquisition cost. They don’t even know they’re wrong because they aren’t tracking properly.
The good news is that once you start tracking, it becomes much harder to bullshit yourself.
The numbers are right there in front of you. You can see what needs to improve, and you have a much clearer idea of where to put your attention. That gives you a reason to act instead of continuing to assume everything is fine.
If I asked you these questions right now, how confident would you be?
What is your revenue?
What is your net margin?
What is your monthly churn?
What is your median client payment?
What is your close rate across all booked calls?
What is your show rate?
What is your close rate on calls that actually happen?
What percentage of your calls are disqualified or unqualified?
What is your cost per call from ads?
What is your cost per call from outreach?
How much cash do you collect per customer compared with what it costs to acquire them and deliver what they bought?
I mean the actual numbers, for a defined period, that you know are accurate.
If you cannot answer these questions or find each answer within 30 seconds, in my opinion, you’re not a serious business owner right now. You need to fix that.
Business is one big game of numbers and math. Different businesses will measure slightly different things, but some numbers we’re trying to make go up, and some we’re trying to make go down.
You need to know which numbers are holding you back before you decide what to spend your time improving.
Get the actual numbers in front of you. You might not like what you find, but at least you’ll know what you’re dealing with.
Hope this email was worth your time,
Matthew Larsen
PS. Work with me in my Skool group at https://skool.com/leadgenerationacademy.ai