Double Your Distributions

Great kick off call this week!

Here’s what we’re doing over the next 7 weeks: doubling your distributions from the previous 7 weeks.

The one focus: cash. How much you’re generating, where it’s leaking, and how much you’re actually pulling out of the business.

Your homework this week:

1/ Read Profit First by Mike Michalowicz ​

We’re going to implement his system with multiple bank accounts, allocate weekly, and you stop letting the business eat every dollar it makes.

2/ Fill out the Double Your Distributions sheet. Watch this Loom video with instructions on how to fill out

3/ Post a copy of your Distributions sheet in Skool for accountability

4/ Do the stoplight self-audit. Grade yourself green, yellow, red on each:

I know my TRUE net margin %

🟢 I know it and track regularly
🟡 I kind of know it or don’t track it consistently
🔴 I have no idea what my actual net margin is

My payroll as a % of revenue is healthy

🟢 Labor cost is under control and I track it weekly
🟡 I think I’m overstaffed but haven’t made cuts
🔴 I don’t know my labor % or I know it’s way too high

I’ve raised prices in the last 3-4 months

🟢 I’m at the top of the market
🟡 I’m underpriced but hesitant to raise
🔴 No idea if my pricing is competitive or haven’t done in a while

I have a strong cash cushion

🟢 It’s comfortable
🟡 Most weeks are good
🔴 It’s an emergency

I pay myself FIRST every month, no matter what

🟢 I pay myself first, consistently, every single month
🟡 I pay myself when there’s money left over
🔴 I haven’t taken a consistent paycheck in months

I have a real-time scorecard that tells me the health of my business

🟢 I track 3 to 5 key numbers every week and know immediately if we’re healthy
🟡 I track revenue but don’t have a system for the other metrics
🔴 I wait for my bookkeeper’s P&L the next month to find out how we did

Post your “reddest reds” and why?

Next Wednesday at 4:30pm EST we’re doing a “Margin Audit Workshop” so come prepared with our YTD P&L.

Cheers!

Brian