What’s the biggest expense in your business?
In November 2017 I had some serious momentum in my business. I made more money Nov-January than I had ever made in any 12 month period prior to that.
So, I did what any other high-growth entrepreneur would do…
I jacked up my expenses from about $2k/m to over $10k/m.
I hired a team (Ops, Funnel Support, Ads Support), I hired a coach ($2k/m), and my accounting bill was near $1,000 a month (plus all the cool fun tech and gadgets).
I was now shelling out $120k/year (annualized) which was more than any salary I had ever received.
The business, like businesses tend to do, calmed back down to normal.
By March I was breaking even, at best…
So when a speaker at a conference asked me my biggest expense I immediately thought, “my team… insurance… payroll…right?!?”
#2 biggest expense was taxes (oh yeah, taxes!)
And the #1 biggest expense is the cost of not knowing how to do something.
Let me explain…
Let’s say you’re at $10K a month and you just knew that if you had a course (or a book, or a group coaching program, or public speaking, or a high ticket funnel…) was the key to getting to $50k/month…
That’s a $40,000 a MONTH problem. Every month you don’t fix that problem costs you $40,000.
$480,000 a year.
So if someone came along and helped you fill that gap with the knowledge of how to do that “thing”… what would you pay for it?
A few months ago I invested close to $10,000 into a program that would overhaul my business model from 1:1 to done-with-you services (scale).
I predict my ceiling in the 1:1 model is $20-30k/month.
If this new scalable model gets me to, say, $50k/mo, the $10k investment is nothing. Nothing.
It’s a 4:1 ROI every month.
So that’s your biggest expense.
What do you want to do right now that you don’t know how to do? How can you get that knowledge and bring your idea to life?
Seriously, reply and let me know…
P.S. This is an excerpt from today’s episode of the Cody Builds a Business Podcast which you can find here.