Know your numbers

KNOW YOUR NUMBERS

KNOW YOUR NUMBERS

Know your numbers is the number one point that the SHARK TANK members stress to the people trying to sell them part of their business. This is the major flaw that will keep the Shark Tank members from investing in a business. Knowing your numbers is also the number one thing that all business owners must know. How do you know which direction to head if you are guessing about your numbers?

Never Guess About Your Numbers

If this happens to you, it is a sure winner for losing money. It is difficult enough to run a profitable business. However, this is a disaster waiting to happen. Do not let it happen to you! When you know your numbers, this will NOT happen to you! Knowing all your costs to deliver a product or service will help you price it properly to profit. After all, that is why you started your business. Do not let yourself down by such a simple task. REVIEW YEAR-END REPORTS

Numbers Are Not That Difficult To Know

When you buy a new product, you obviously know your costs. Make sure you include shipping in your evaluation if appropriate. This is the time to price your product as it is fresh in your mind. When you know your numbers, you will know what gross margin you need to be profitable. This is a good starting point. However, there are other things to take into consideration.

  • Check out what your competition charges.
  • It would be best if you used different gross margins on different products or services.
  • You do not need to be the same on all products or services. That is especially true if your competition does not have a product or service that you have.
  • There is nothing wrong with making more money.

Therefore, when you know your numbers, you will make considerably more money.