The Two Numbers Every Business Owner Must Know...

Read time: 4 mins…
Welcome back everyone!

This week’s Business Builder Bulletin covers:
💼 The Two Numbers Every Business Owner Must Know
📊 How to Calculate Customer Value and Acquisition Costs
🚀 Turning Insights into Profit-Driven Plans
✨ Why a Clear Plan is Your Ticket to Growth

Let’s dive in and get your business on the fast track! 🚂

On Friday, I was running late for a train.

You know the feeling—checking the time, pacing, and calculating how fast you can sprint to the platform. 🚉🏃

I had a choice: run flat out and risk exhaustion or take a more measured approach, knowing how much time I had and exactly where I needed to be.

Spoiler alert: I made the train, but only because I knew the key details—

How long it would take to get there and how much time I had left.

It struck me how similar this is to running a business. If you don’t know the key numbers driving your decisions, you’re flying blind.🧑‍🦯

Let’s look at the two numbers you absolutely must know to stay on track and reach your business goals:

How Much Does It Cost to Acquire a Customer?

Think of this as your “ticket price” for getting customers on board. This is your Customer Acquisition Cost:

dividing the total you spend on marketing and sales by the number of customers gained

If you don’t know this number, it’s like guessing what time your train leaves—you’re bound to miss it.🕰️

• Track your ad spend, marketing costs, and sales efforts.

• Divide those costs by your new customers to understand what you’re really paying to bring them in.

When you know this, you can fine-tune your strategies to ensure that you are spending wisely.

How Much is the Average Customer Worth to You?

Now, think about your passengers. How far are they traveling with you? This is your Customer Lifetime Value  

How much the average customer contributes to your business over their lifetime.

• How long do your customers stay with you?

• How much do they spend on average?

• How frequently do they buy from you?

If how much it costs to acquire a customer is higher than this

it’s like spending more on the train ticket than you’ll make at your destination.💷

The Bigger Picture

Once you’ve got these numbers, ask yourself:

• How much money do I need to break even?

• How much profit do I need to support my lifestyle?

This is where the real planning starts. Knowing these figures allows you to work out how many customers you need and create a roadmap to reach your goals.🗺️

And Finally…

The Key to Success: Have a Plan

Just like knowing the train schedule helps you catch the right one, understanding these two numbers gives you clarity and control over your business decisions.💪

A solid plan grounded in data makes you more likely to achieve the success you’re striving for.

So, take the time to calculate these two numbers.

It’s your ticket to building a profitable, sustainable business.

Good things happen when you plan with purpose.

Success comes from knowing your key numbers and moving forward with confidence. After all, it’s one of the laws of business…

Need help crunching the numbers or setting your plan in motion? We’re here to help—let’s get you on the right track.

P.S. Subscribe today for access to an incredibly useful document that introduces you to the ideas of the Business Pyramid and how you can grow in financial success…