success - Turbo Coach, achieve breakthroughs - Brian Tracy

Maximize Profits
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staff according to the most pressing need at the moment.
Once a person has been hired, often she or he can become a
permanent fixture, even when needs change. Many entrepreneurs
are too busy creating products, designing services, and
generating revenues to pay close attention to employee performance.
Over time, the result can be an inefficient and ineffective
staff and a bloated payroll.
From an accounting perspective, payroll is an expense.
We regard it as an investment and, as such, it must yield at
least an acceptable rate of return. But the goal should be an
optimal return. What is acceptable or optimal? And how can
it be measured? This varies by industry and even by size of
company. A general rule of thumb is that each employee
should contribute three to six times her salary in gross revenues.
Stated differently, revenues in your business should be
three to six times your payroll. And if you head up your own
small business, don’t forget to include yourself in this calculation.
Although you may not draw a salary, you still represent
a cost to the business. If you were not there, how much
would you have to pay someone else to perform your role?
A common mistake made by many entrepreneurs is to forget
the cost of their own input when calculating the profitability
of their business.
Customer Profitability
As we have discussed, some customers are more profitable
than others. Some may actually be costing you money. Can
you identify your most profitable customers? Do you know
any who are unprofitable? There is not necessarily any connection
between the size of a customer or the volume of business
he produces and his profitability.