To Succeed You Must Know Your Numbers!

To Succeed You Must Know Your Numbers!

Have you heard of people who have blown up financially?

Have you noticed how some people have a lot of money and then they lose it or have excellent opportunities start off well but then lose their momentum and drive. On the outside it looks like bad luck, a downturn in the economy, a lousy partner fill in the blanks. 

But on the inside of your mind, however, it’s another matter. That’s why if you come into big money when you’re not ready for it on the inside, the chances are your wealth will be short-lived and you will lose it. 

The vast majority of people simply do not have the internal capacity to create and hold on to large amounts of money and the increased challenge that goes with more money and success. That, my friend, is the primary reason they don’t have much money.

A perfect example are lottery winners. Research has shown again and again that regardless of the size of their winnings, most lottery winners eventually return to their original financial state the amount they can comfortably handle. That said, the opposite occurs for self-made millionaires. 

Research shows that when self-made millionaires  lose their money, they usually have it back within a relatively short period of time.

One of the biggest errors I and most Online Marketers make is they set their financial thermostats too low, because they fail to map out an expenses vs income Blueprint. They instead make up a figure like I plan to make $3,000, $5,000 or $10,000 per month.

I urge you not to make this major mistake. Run your numbers and see what you need to pay your bills then add a profit margin of 30-50%, if you’re marketing digital products for example. 

In fact, I think that’s a good point to end on now. That said, let’s make this a homework assignment. 

To succeed you must know your numbers.

 

19 thoughts on “To Succeed You Must Know Your Numbers!”

  1. Jon Wesley Bowman

    When I first started out on this venture I did figure out what I needed to make per day just to squeak bye but I never added a profit margin but I have been making a list of things I would like to do and have,vacations,house,etc. You do need to know your numbers for sure. I’m definitely want to try with just a profit margin to see the differance. Look forward to your next post.

    1. Jon, thanks for your valuable comments. It sure sounds like to picked
      up some value points from my post. Now bake them into your numbers
      and plan up with a written plan to reach your goals.

  2. Hi James,

    It feels like you’re talking about me.

    Every time when I’m on the verge of hitting 5 figure, I will somehow do something to sabotage myself. I know I still have a lot of inner work to do.

    1. Alan, no worries, I am glad you looked in the mirror now take
      action and keep moving forwarding. I am pulling for you 100%
      come back and post your numbers here for the world to see.

    1. Dagmar, it’s all about your numbers. If you can show me the numbers
      I can show you the $$$, does that make sense? Thanks for stopping
      by and I look forward to your questions in the future.

  3. James, your post is a real eye-opener!

    The importance of understanding our financial thresholds and setting realistic financial goals is something I hadn’t considered in depth before, and to be honest, is a BIG area of weakness for me, I am a ‘wing it’ sort of guy..

    Your point about how people often lose their wealth due to not being mentally prepared to handle it, and the contrast with self-made millionaires, was particularly striking.

    The idea of setting a financial thermostat and creating an income vs. expenses blueprint is a practical takeaway I will certainly need to look at and understand better.

    Thanks for the wisdom!

    1. Hey Tony that was a very valuable comment you made. It sounds like
      you looked in the mirror. That my friend is powerful. If I can help
      people to reach their dreams I think that builds karma in my book,
      and I’ll try it any day of the week!

  4. Important to know numbers, awesome! My wife and I have always tracked our finances, what comes in and goes out, monthly. keeping track got us through seasons of unemployment with losing our home or anything else. I feel it’s just as important in maintaining a successful business!

  5. James,

    It is very true. You must know your numbers if you want to succeed. Knowing your financial number is important but so is your marketing numbers. If you don’t track your numbers you don’t really have a business.

    One of the sayings about goals is that they must be measurable. How will you know if you are succeeding or in trouble if you don’t have something to measure it with?

    James as you stated, it is vital to know your numbers.

    Thanks for reminding me to build in away to track my numbers.
    CJ

    1. CJ, welcome back and thanks for another valuable comment. I believe
      the fastest road to success is to help as many people as you can.
      Success is measured in my book not about selling, it’s more about
      helping people, and mindset.

  6. It’s amazing how one creates his own equilibrium state with his beliefs and mindset. We are what we eat. Pull us away from our comfort zone, we return there easily, unless we change the vision of ourselves. By believing a bit more in our capabilities, we can make progress. This necessitates discipline but also sometimes huge efforts and commitment that, I agree, are not given to everyone unless they really want to change.
    Martin

    1. Martin, thanks for your engaging comments. Success starts with
      mindset change. Next you need to take sum action for at least 14 days
      to start the process, and keep moving the needle. Life change is never
      easy or more people would do it. That said, you are welcome back anytime.

  7. Agree with you, James.
    Numbers reveal why someone’s business works or not.
    If you focus on Key Result Areas of your life or business (KRA) they bring the most rewards and revenue. They must be your highest priorities. If you are a blogger- writing, if you are a salesman- calls etc. Then you can apply the Pareto principle of 80/20 and just focus on what brings the most revenue.
    Here we must touch upon Income Generating Tasks (IGT) which is the work you do. Measuring it will reveal, what you need to focus on. No two tasks have the same value. Not all have to be money-correlated or income-generating. Ask yourself: is writing a blog-post an IGT? Is watching a YouTube IGT? Is cleaning your car an IGT?
    Knowing your numbers will give you clarity on your priorities.
    This is the fabulous topic you touched on, and very important for every entrepreneur. If you know how many sales you make from your funnel, you know how many leads you need to get. Knowing how many clicks give you the required amount of leads, you know how much you need to spend on your ads. If you want to increase revenue, increase your ad budget or lower your cost per click.
    It’s so simple when you know your numbers.

    All the best.
    Tom

    1. Tom, thanks for leave your comment it added a ton of value.
      I mentioned the numbers as the key figure to focus to set your
      online income goals around. That said, most of your other comments
      should be part of a written business plan to pint you in the right
      directions. It’s a process thanks and I welcome you back again.

  8. James, you are right, the numbers are so important. It’s the one thing I feel is the hardest to understand. Even Alex Jefferys said in the call before Christmas that ‘knowing your numbers’ was the biggest lesson he has learnt in business. Many thanks for the reminder. I need to work on that. Thank you, Atif

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