16.2 | Power of the Percentage REDO
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[00:00:00] Hi guys. I am so excited to share some really tangible and simple tips on how you can leverage the power of percentage to not only reflect where you are in business, but more importantly, reflect where you want to go and help you set some really key goals. So don't stress. If you're not a numbers girl, I promise it will be worth your while to listen into my five simple ways that you can apply these principles to your business.
And why I think that they. We'll serve you well, And I also just wanted to give you guys one more little headset that tomorrow. Is the last day that you can dive in as an artist with St.
And take advantage of the special incentive that we have going on.
And if you're new to the podcast and you're like, what, what the heck is saying? It's essentially an amazing makeup company that I am a part of. I'm a distributor and have been for the last five years. And essentially becoming an artist is always something that you can do. It doesn't even involve having to be a [00:01:00] makeup artist.
It's just sharing. A game-changing makeup with friends and family, whether you choose to do that on or off social media.
You can text the word artist to 9 1 2 4 0 5 8 9 1 2. And find out more information about what exactly that is. But essentially what's really cool is through Thursday, May 12th.
If you decide to enroll as an artist with St. You will get not only a ticket to our virtual conference, which is happening this Saturday. So excited. We're gonna be doing a little watch party in Savannah this weekend. But you will also get this gorgeous custom actually it's exclusive. I don't even have access to it. It's the only way you can get it. It's a palette that will help you set your business up with success. So just wanted to give you one last reminder. If that's something that's been on your mind or heart, and again, you can just text the word artist to 9 1 2 4 0 5 8 9 1. To, to learn more so let's dive into today's episode shall we i'm so excited
[00:02:00] [00:03:00]
Hey friends. okay. So today's episode is probably gonna do one or two things. It's either going to feed into you. If you are a numbers, nerd like me, and you're gonna be like, yes, Heather, give me all the statistics, all the data, all the numbers and all the math problems. And then for some of you, probably most of you, you're going to be like,
Well, first of all, if you even clicked on this episode, after looking at that, it has anything to do with bath, right? You're going to be like, Hmm. Yeah. I don't know. I think I'm going to tune this out. Cause numbers make my head hurt. I suck at math and. Yep. I'm just not up for this today. Well, I'm getting courage. You friend, I promise you that no matter which of these two sides you fit into, I think this will be beneficial into helping you.
Very very simply analyze some key aspect of your business using the power of the percentage. One little simple. Little trick. I promise you it's [00:04:00] easy and this math problem will be a game changer for you in building your business and helping you to set goals and also helping you to break free from that comparison trap that we typically get in, in our business.
And lastly, to help you get really clear on how your business is doing, where your business is going and where your business has been. And also of course, those of you looking to build your business off social media, this will help you as well. So let's dive in to the power of the percentage. And essentially when I'm talking about a percentage, the general rule of thumb or the general math problem is you take any number.
And individual number. And you divide that by the total number, which is going to give you typically a decimal. And so you're going to want to move the little decimal 0.2 places. To get the percentage. So, for example, just simple, easy math, 20, the number 20 divided by a hundred. Would be 0.2, right. And you're going to move that decimal place to get [00:05:00] 20%. So 20 out of a hundred is 20%.
So just keep that in mind generally, when. I tell you about each of these different little ways you can use the power of the percentage in your business to build your business. It's very simple. I promise you. It's just that little easy math problem. You can do this. Breads. Okay. So I'm going to share with you today. Five ways you can use this very simple math problem. If you will, to find solutions for your business again, and get clarity, help you set goals and move forward in your business.
So speaking of goals, I've done a whole series on this. Actually, I originally started this podcast centered around helping you break down those. Big business goals. So you can start over with those episodes. I think it's episode two through seven that are all about helping you break down your goals, helping you find worthy goals. And essentially a lot of times what happens is we set these really big goals and we often fall short of them. So the book that I'm reading right now is something I think you'll really love.
And I would love to invite you to read it [00:06:00] along with me. I will certainly share it in the scale without social for female entrepreneur telegram thread. So we can you can chime in over there. And read it along with me, but the book is called the gap and the gain by Dan Sullivan and Dr. Benjamin Hardy.
And I'm just into the first couple of chapters and can't wait to get into it more, but essentially it talks about when we set goals in life and business or sports or whatever it is. We tend to want to live in the gap between where we are and where we want to be. So. The opposite of that is the gain, which is essentially how far we've come. So from where you started to where you are now,
So a lot of these metrics that I'm going to share with you today are kind of inspired by this and hopefully will help you. But I want you to think about the gap and the gain through the lens or through that lens. I should say, as we dive into some of these ways that it can build your business and I'll, I'll let you know when.
Those are some [00:07:00] aspects that are relevant. So essentially to kind of figure out not just where you want to go, but really help you analyze where you are right now, how that compares to maybe where you were a year ago or three months ago, and just help you to get a grasp on some really key basics, no matter what business model you're in.
All right. So let's dive into the five different ways. And the first way to would be to determine your monthly, quarterly, or annual gross rate by looking at this key percentage. So, all right, this is probably where some of you were like, oh no, I can't do this. I'm pressing. I've got to go do something else. Your add brain is like,
No other, we can't do math. I promise it's super simple and really, really important. So you might want to bust out a notebook, probably a calculator or your phone. If you're driving, you're probably really going to be like, oh dear. But I would encourage you to write some of this down and I'll try to go slow.
Although, if you're like me and you listen to podcast on one and a half speed. You might want to drill that back? My Voice, obviously [00:08:00] speak very fast and you might want to drill that down to one, or you can even slow it down further, but here we go. It's really simple.
So to figure out, for example, how this month compares to last month. Or this quarter, which of course would be the last three months compared to say the previous quarter. Or the same quarter from a year ago. And my favorite metric is actually looking at an entire year's worth. If you have that much data, if you've been in business that long or been doing whatever it is that you do, where you've got that info from last year. Right. But essentially all you do is you take your new number or the recent number.
The current number that you're working with. So we'll just use the example of total sales for April. So, whatever it is, it could be your total podcast. Whatever it is, but your existing number. Take this month, your April sales month. And then i want you to take your april of last year's sales month
[00:09:00] And then you were going to subtract. The new number. So April, and this example from the old number, which. His last April. And you're going to take that number. So that's the difference in those two, right. And you're going to divide that into the original number, the last number, which would be last April.
So let's use some numbers as an example, we'll keep it really, really simple. So let's say last year you did $75,000 in sales. Yay. That's amazing. But this year you did a hundred thousand dollars. And sales. So yay girl, if that is you give yourself a big round of applause, right. But we're just gonna use some round numbers and that is amazing, but a hundred thousand dollars this month, minus 75,000 last year.
Would get you a difference of 25,000, right. So you're gonna take that number 25,000 and you're going to divide it by the old number, which was 75,000. So essentially you had a business growth of 25,000, but when you divide that into the 75,000, you [00:10:00] get 0.3, 3, 3, 3, 3, 3, 3, right. Infinity. Which is essentially when you move that decimal 33.3, 3%.
Which is a 33% growth in your business. From last year, which is amazing. That is an incredible amount.
Now sometimes when you do this math, it's going to turn out to be a negative number. So let's talk about what that looks like. So say you did 75,000 this April, but last year you did a hundred thousand. So same principles say math problem. You take this number 75,000 minus last year's number, a hundred thousand, which would be negative 25,000.
So then you take negative 25,000 divided by last year's number, which is a hundred thousand and you would get negative 0.25, which means that your business decreased by 25% in that month. And the reason those numbers are different and it's not the 33%. You know, Up or down, or, you know, that the original one wasn't up just 25% is because [00:11:00] you're comparing it directly to where you were in the past. So again, you're living in the game versus living in the gap of where you want to be, whether those numbers are good, bad, ugly.
Whatever that looks like you're looking at facts and you're comparing it to where you've been, which is going to help, you know, where you want to go. So does that make sense? So the numbers are what they are. And some of those times there are a lot of factors that go into it. Sometimes those factors are out of your control.
Some of those things that are impacting those numbers, that having the facts is going to be a way that you can get clear on where your business is right now. So some of the ways that determining your monthly, quarterly or annual gross can help your business is first of all, you're going to start to notice trends and notice that not every month is going to go up.
There are seasonal changes and every single business. So there might be months that are stronger and that might be year to year. It could be. A different factor. You might have had a new product launch that really led to a lot of growth in your business over a [00:12:00] certain month. So there's going to be seasons in your business, some stronger and some weaker than others.
So you may find that, for example, in my business last month, I had a really strong reorder business, which is always super exciting. That means that a lot of my customers reordered and stocked up on their makeup. But that might mean that this month, my reorder business might not be as strong because I had so many of my customers where at our last reorder last month.
So I don't know, we'll look and see what that looks like, but that's just an example of why it might spike one month then, you know, go down the next. So there are many different. Factors that go into it. But when you take a broad metric over something like a quarter or even better a year, and looking at your year over year growth, then you're going to get a bigger picture idea of where you are, and also get some ideas for goals for where you want to be. So another example of this is our United States economy, right?
I realize I have listeners all over the world. This is so cool. Actually, we were in the top five podcasts in [00:13:00] Zimbabwe. So for all use Zimbabwe listeners. Hi and welcome. I love that. But for You know, for when you look at a national economy or here in the United States We are talking about going into a recession. There's a lot of buzz and news around that, right? Which a recession is essentially defined by two down quarters. In gross. So there I'm not an economist. In fact, I actually got a D in economics in college. So not here to talk about that. You can Google that, but, but I do know that it's two quarters that are essentially a negative growth of the overall business in the company. Right. So we've had one quarter that's down. The first quarter was down. And if we do that again for a second quarter, that will be considered a recession.
So I remember when I had my boutique, my traditional retail business in Savannah, there were times where this happened and I'm meticulously tracked this data to know that sometimes I might have a bad month or even a bad quarter. But I would know that if I had two bad quarters in a row, that likely there was something bigger at hand and I could diagnose it. There's a bigger problem. And again, it might [00:14:00] be sometimes that there's a recession or some external factor that's impacting the entire industry.
Or maybe it's something going on directly with my business. Something, again, I can control. But until, you know, this math and it's so easy, you guys, it's very, very simple and I don't want you to be scared of it. Right. But until you know what this math is and what the actual results of your business growth is, you're essentially just speculating. It's all relative.
So the first way to track that first number or metric you can use the percentage is to determine your ma. The monthly, quarterly or annual grits. So that's step one. Okay. So the next example is going to be how to break down your inventory or a specific aspect of your sales. So you're going to use this as a percentage base, obviously, cause that's the metric we're using and I'm going to use just as a tangible example.
A boutique and apply this no matter what business model you're in, because I just love a tangible example and hope this will apply. So say you're a boutique that carries everything from jeans to easy t-shirts dresses, [00:15:00] jewelry, and shoes. So I would love for you to determine looking at your sales. And hopefully you have a point of sale system that will give you this data. If you have a boutique, but say dresses.
In April were $20,000 of your sales. Of your total cells that were a hundred thousand dollars. So you did a hundred thousand dollars in business for your boutique in April. Andy. $20,000 of those sales came from dresses. So. That would be what. Now that we know what the math is. You take 20,000 divided by a hundred thousand.
And that would be 20%. So 20% of your overall sales come from dresses. So, this can be incredibly helpful when you go to market, for example, that the percentage of what you purchase or the percentage of your overall buying budget. Should match the percentage of your sales. So if you have a certain bag, a buying budget, you're either going to market with the cash that you have, or if you're planning and advanced say for the next season, then.
You might be [00:16:00] basing that on the revenue, but essentially, you know, that if you've got, for example, $200,000 to spend on your budget, if you allocate 20% of that or $40,000, because the same percentage goes, you take 0.2. Multiplied by 200,000 to get 40,000 and that would be allocated towards that dress category. Right. So you're definitely going to want to continually track this and really make this kind of a part of your routine, because you're going to want to look at the seasonality aspects because maybe an April dresses are a higher percentage.
Whereas if you're going to market for October, You might not sell as many dresses. You might not be 20%. It might drop to 10% of your, your your business in October is dresses. So if you have that data where you can track it every time it's going to be helpful, but this is just an example, a broad example, for those of you who might be a boutique owner, like I used to do.
So you're going to want, look at these factors and, and remember it takes two seconds to apply these numbers. So it works the same. If you're in a [00:17:00] model where you're like me and I sell makeup, right? Some of it comes from in-person. Some of it comes from online, whether that is social media or from this podcast, even, or from referrals, from friends.
And this percentage example I'm sharing is something you can apply in the same way. So I did a little bit of math and some stats Which is a fun update for those of you who are curious with how and what my business has looked like since I've taken it off of social media. And what's really cool is I found that only about 40% of my business, which does include reorders. And we'll get to that in a minute. The difference between reorders and new business.
But when you look at my overall business, About 40% came from connections that I did meet on social media or at least I think I did some of them. I'm not sure how they found me, but since I knew I didn't meet with them in person. Or that I didn't have some sort of in-person connection with them. I'm going to go with 40% came from.
Social and 60% came from either in person, which the actual number was 50 per [00:18:00] 3% in person. And then the rest that other 7% came from either the podcast from connections I've made from this, or. That. You know, P reached out directly to me from this opportunity or from referrals or from some other examples outside of social media.
So, if you're trying to build your business without social media, you can do the same. Maybe you're like me and you have a podcast and want to know how it's working. And maybe you've monetize it in some way, maybe through coaching or courses. And you've got that revenue starting to come in so you can look and see what percentage of your bottom line income that you're making is coming from your podcast efforts versus your social media efforts. So if you are expanding or growing or scaling your business with a different revenue stream, you can kind of look at that, right.
So it can be actual items, or it can be an aspect of your sales, but essentially you can use this percentage math to help you break down exactly where your sales are coming from. So that's our number two way that you can [00:19:00] leverage this easy math, math example. So number three and hopefully I haven't lost you. Are you, are you doing okay? Are you still there? Hopefully you're all right.
Number three is going to be. You know, an important one because it's centered around comparison, but how to leverage it in a good way. Remember, we're staying in the gain, not the gap. So this is. Essentially how you can use a percentage to determine where you stand in your company. Or against your peers or within your industry?
And you can use that as a percentage again, because a lot of times we make up this, these general assumptions or feel like we're not enough. And a lot of times it's not based in fact. So if you're taking a quick percentage or finding out by Googling or asking some different people in your industry, or if you're a part of say a network green group within your industry,
Yeah, you can do some digging on some stats. Within your business model. Right? So essentially the first one we're going to look at is your market share. So this is another one of those economic terms, which I can't believe I'm teaching [00:20:00] economics. This podcast, but essentially market share is just how much of the total industry pie your business represents.
So if you die, divide your total revenue by the total industry revenue. Then you'll see that you, your business makes up a certain percentage of that. So, If you're in a different type of business model, like pharmaceutical sales or network marketing, like me. Or maybe you just have a little bit more control over your income.
Even though it might not be your business, but you are in charge of what you sell. It can be the same thing. If you know, what the revenue of your businesses versus the total business of another company, or, you know, your, your total company or a group that you're a part of. You can know a percentage to figure out where you stand, and this can help you to set goals, growth goals in your business.
So I'll give you another tangible example as it's a little plug for a fabulous another interview. I did my first interview. A couple of weeks ago with Tammy Williams, go back and listen. You'll love it. And I'm actually going to be diving into a whole [00:21:00] series of interviews coming up. And I'm kicking it off with someone who's very special to me. She is my Saint grandma, meaning she is two mentors above me and my same business. Her name is Amanda earnest. She is.
An incredible leader and mentor for me. And I'm going up. That her into this example. So in our company, we have about 27,000 artists. We call them artist. But essentially it's just distributors independent distributors just like me. Right? Well, Amanda has 21,000 distributors on her team alone. So you can take that 21,000 divided by the global total were in the United States in Canada right now of 27,000, which PS? I still can't like get over that number.
It blows my mind to think about. The future growth. Right? Talk about the gap in the game. Like it's, it's incredible to see the growth we've had in five years, but knowing that it's just the beginning and other companies, for example, I think Mary Kay, which I little fun fact, I used to be a Mary Kay
Distributor as well back in the day. But [00:22:00] anyways They have millions of distributors or others maybe have hundreds of thousands. And we are just getting started with only 27,000. But anyways, but what's crazier is if you take Amanda's number 21,000 and you divide that by 27,000, you get 77.8 or 78%.
Whoa. So if you move that over those decimals over and you get that 78%. 78% of the entire company is on Amanda's team. Wow. So that may or may not apply to your business model, but I wanted to use it as an example, a round number, and also give you a little bit of heads up of what's going to be coming not only next week, but in the coming weeks to come. So.
Get excited for that. Okay. So if you're focusing on your own individual sales, that's another example where I can kind of give a tangible example because this is something that I see a lot with my team where that comparison. Kind of isn't based in fact, first of all, and they're comparing [00:23:00] inside that gap between where they are and where someone else is versus where they are versus like where they've, how far they've come or where they can go. Right? So in our company, we have different commission brackets where you can earn retroactively up to 40% commission for your entire month of sales.
So for example, if you decided to dive in as an artist this month, you would have all months to work up towards that higher. Higher commission bracket, which is really cool because a lot of times it starts from where you are. So say someone who sells. An hour 35 per cent commission bracket, which is typically where I land.
With my own business, that means they make 35% of the total amount that they sell. In their pocket in that given month. And the amount, if you were in the United States is $2,000. So the bracket basically once she saw $2,000 between 2000 and a little less than $4,000, that's the 35% commission bracket.
So my team, which is about 4,000 people. So you can, you can kind of do [00:24:00] that math, like 4,000 divided by 27,000. And that means my team is about it's 14.8. So almost 15% of the whole company, which is like kind of blowing. It's crazy, but there's another example of, right. Like it's not, Amanda's 78%, but it's pretty stinking. Awesome. And I will absolutely take it. And it's been cool to kind of watch.
That market share, if you will grow from less than 10% to like 10 to 11 to 12%. So I'm super thrilled and very content and happy to be with my 15%. But. Of the 4,000 people on my team. 4% of them sold in that 35% commission bracket. Which some of you guys might, especially if you're not a fan of the business model, you might be like, oh, well, there you go. See only 4% sell, you know, sell in that amount. But let's do some quick math on that. Right. So if someone were to sell $2,000,
And that 35% commission bracket, that's $700 that they made this month in their pocket, just by sharing a makeup [00:25:00] line that they love. Right. And yes, that means that 4% of my team sold that. But that means that 4% of my team made that much. And there's additional commissions that you can get coming from downline cells.
And in case you want to learn more about the. You know how all that works and the income potential with St. I will include our income disclosure statement in the show notes. So you can just tap the more info wherever you're listening and click on that income disclosure statement. So you can kind of dig deeper into that.
And essentially. Well, what that means to me is, I don't know anybody who wouldn't love to make $700 or more right now, because there are girls as, as you'll see, are selling lots more than that. But also the average artist on my team sells around $400 in sales. And so that puts them in the 25% commission bracket, which, you know, again, they're going to compare themselves, hopefully not in a bad way, but they're going to compare themselves to the 35% commission bracket. But if you take 25% of $400,
That's an extra hundred dollars a month. So the average artist on my [00:26:00] team is making about a hundred extra dollars a month, which is awesome because there's no pressure. We don't like we don't have minimums or anything like that in our company. And so, you know, to be honest, most people don't have huge goals. And we welcome that. We use the analogy of walkers, joggers, and runners.
And we meet people where they are based on off of their goals. But what I'm seeing right now is in reference to the last episode that I did. Are a few episodes back talking about having FOMO when others are selling big. So a tangible example is Amanda, my Saint grandma, again, that you'll meet next week. She had a gal on her team last month, sell $300,000 worth of makeup. And one month, which we just found out is a company record. And not only is it mind blowing, it should absolutely be celebrated from the root rooftops.
I mean, seriously, talk about results. Not typical. Am I right? But what tends to happen when someone hears that. And again, there's a whole episode on this, but when someone hears a stat like [00:27:00] that, If they sold quote, only $2,000, they're going to feel like, wow, I'm so far away from that $300,000. Right. I suck.
Oh, this is terrible. But that's not true because that person is in the top 4% of sales in the entire company or well, on my team anyway. And I think that, again, given that we make up about 15% of the company, I would think it would be similar. But that my friends is again, living in the gap from where you are and where someone else's.
Whereas you need to live in the game to know that say you are on my team and you sell on average $400 a month. What can you learn from the girl that's selling $2,000 a month to stretch into that next bracket, to where you're making 30% commissions at that $800 level. Right. And making $240 in your pocket for just doubling your efforts.
So again, think about the gap and the gain when you do this, because when someone is selling in the top 4%, [00:28:00] that means they've sold more than 96% of the rest of the company. And again, even better, it's a tangible business model. That's bringing them at least $700 into their bottom line. With no expenses required. So my heart breaks when someone, and this might be you, or, you know, if you're in this company or business model, or just getting your business off the ground when you're stuck in the comparison mode. So I want you to, I want to encourage you to, you know, when you're looking into this math to use it to.
Set goals for yourself to grow personally and in business, not to use it, to compare yourself in a negative way, live in the gain. Don't live in the gap. Okay. So I'm looking at that market share again, you can just Google and find some stats for retail for small business. Again for boutiques. If you have that, I just found out as I was prepping for this episode, that 90% of all online businesses fail. So again, 90% of all commerce businesses fail. So if you're in that 10% of successfully operating an online boutique girl, you better give yourself [00:29:00] a round of applause. So, you know, you might not be selling a hundred thousand dollars last month, but if you are making a business and making a profit, you can grow and scale that, but it starts with kind of knowing where you are and knowing where you want to go and knowing where you want to grow.
So another example as we talk about this, especially as we wrap up the school year for a lot of us, for you mamas out there. Is thinking about your kids and your test scores, or another example is I was playing golf with a friend and she learned that I guess. I think it was maybe 50% of people on average shoot, a hundred or better on the golf course or something along those lines.
And she's like, so I was so happy to know that I'm average and I was like, what? No, I wait. I want to be average. I want to be in the top. I don't want to be 50%. I want to be better. So maybe you're that type overachiever person like me. And you're, you're kind of in that, in that same thing.
Same thing with my kids. I, when we get their test scores, wrapping up the end of the year you know, they give you that percentile, right? Same thing with their height, weight. When you go to the doctor [00:30:00] and I've got one kid who's always in the top 95% or more, I have another one that's right in the middle, in that 50 range.
And we have to love our kids where they are. And we have to love ourselves where we are. And you might be just like my friend, my golfer friend, Megan, who's like, totally fine. Just being in the middle. Or you might be like me where. I love to stretch myself and know when I see and hear like, Ooh, 4% of people are doing this. I'm like, oh, I can, I can do that. What are they doing that I can do? Right.
But that's another episode for another day. But these are just some ways that you can apply this very simple percentage-based stat to your business to determine where you are and more importantly, where you want to go and grow in your business. All right. So number four and stick with me. I know this has been a long one, but we're wrapping up here. Number four is what percentage of your business is new business versus repeat business?
So some of this might be business model dependent. I've talked about having a bridal shop in Savannah. Where obviously most of our customers were first-time purchases because they were brides. Not all, but most of them, right. [00:31:00] So yours might be a little bit, a little bit different, right? It might not be as applicable, but for those of you guys who are going for a residual income based on your customers, being happy customers and continuing to give you business, which is something we talk a lot about on this podcast.
Then you're definitely going to want to continue loading that funnel with new business to create the repeat business, but you're going to want to keep your eye on that residual business and keep a healthy, healthy. Focus on that gain versus the gap. If you will.
So again, we'll take my business for an example. For those of y'all who've asked what that looks like now. So over the last few months, since I have taken. My business office, social media, about 17% on average. Of my personal sales revenue comes from new business. Meaning 83% of my businesses coming for reorders or residual income.
And what's even crazier than that is when you look at my, my overall [00:32:00] income, which actually had my highest. Bonus or my highest paycheck if you will and my business and the five years of business last month and it's kind of cool to know that
Less than 2% of my overall income from last month came from my own personal cell. So the rest came from my team and helping others build residual incomes of their own. So that's why that is, is more of my passion. Is helping others build their business. Then I would say it is in building my own personal business, but it's fun to lead by example. And I love to track my stats and my data so that I can share what's working with, with you guys. So I'm obviously thrilled with 80% of my business coming from my reorders or the residual income side of it, because that was always my goal.
When I set up my business was to have happy customers. That continue to reorder, and then I can continue to serve people as they, as they come to me. Or as I talk about, cause I can't not talk about Haas in this makeup is right. And not only that I have set up systems in place for my business [00:33:00] and that's what I teach my team. My passion is, is truly just simple systems that can help make it very easy for customers to reorder again.
To kind of guide them through that funnel and that next step. And essentially that's how I have built my business. So. That's where my business is coming from. And just say that you had a thousand dollars in sales. This is how you can track it, right? If you had a thousand dollars in sales last month or whatever month that is.
And $200 of that came from new customers and $800 of that came from. Existing customers or reorders, then again, do that math 200 divided by a thousand is 20%. So 20% of your business is coming from new customers. So this is again, is very, very simple, and it will be a quick little bullet point if you will, but it's a powerful one that you can do, especially if you were trying to build a residual income or a passive based income business.
So again, if you're trying to bring a new business, maybe your business is feeling a little bit stale and perhaps your only business [00:34:00] is right now coming from reorders. And it's not strong enough to sustain the level of income that you're going for, and it's not where you want it to be. But identifying that percentage is going to be helpful for you in determining a goal to grow that.
And so that's how this can kind of be helpful for you and your business is as knowing which of those two areas, new business and residual or reorder business you need to focus on at your business. Okay, last one is one of the coolest, it's a fun and simple fact that you may or may not have heard before, but it's called the parade. Those Principle
And it essentially says that 80% of the results are going to come from 20% of the input. So there's a lot of different areas that can kind of apply a lot of times. This is known as the 80 20 rule. And essentially what it looks like is look at your closet. Okay. So 80% of what you wear comes from only 20% of the pieces in your closet.
Or if you, this is, and this is true. I challenge you to look it [00:35:00] up. If you look at your customers, 80% of your revenue is going to come from 20% of your customers. If you lead a team like me, it's about the same. So 80% of my. Total team revenue comes from about 20% of the ladies on my team. Right? So one ways that are well, a couple of the ways that this is powerful in your business.
Is who or what are your 20 percenters? So again, that could look like an area of your business that you want to focus on.
Or a group of people that you need and should focus your energy on.
So let's look at the 20 percenters that are bringing in 80% of your business. Right? So a lot of times they're the ones that aren't necessarily asking for your time. They're the go getters, but they deserve your time. They deserve the recognition. So you should connect with them, encourage them, continue to build them up for what they're doing.
Even better, you can ask them to share what's working with the 80% that are only bringing in the 20%, right. So [00:36:00] you can focus on can and should focus on them to build and grow that business even further. But then also you can focus on that 20%. That's only bringing in the 80%. Either by focusing a little less time and not spending, you know, you should spend probably 80% of your time with 20% of the people who are bringing the business and you can spend the rest of the 20% of the time.
Of your personal time serving the 80%, right. Also, you know, as hard as it is to let someone go in business. If you are finding that there are people that just aren't performing well, sometimes letting them go and move on to something different. We'll allow you space to bring in other people who will contribute to your overall business. So this 80 20 rule is something that I definitely encourage you all to look into further and you can Google think about it. There's books written on it it's awesome Think about your closet think about your business it's definitely a powerful principle that is based on that percentage that can apply to so many [00:37:00] areas of your business
Okay. So hopefully your brain, is it too mushy at this point? And it's always. I would love to leave you guys with a little bit of homework and some clear action steps that can help you take your business to the next level. So I encourage you to do this and don't worry, you don't have to do all of this. I wanted to give you some tangible examples, but the first step, your first piece of homework is going to be, which of these percentage-based calculations can you use, which one of them is relevant to your business?
So just pick one don't do you don't have to do all of them. You can save or bookmark this episode. Certainly share it with a friend to, especially if they are. Numbers nerd, or if they need a little help with some simple numbers or math. But I want you to look at the five different ones I shared today, and I'm going to repeat them again simply, and I want you to pick one that you can apply to your business. So the first one is monthly, quarterly, or yearly growth as a percentage.
The second one is the percentage of your sales and [00:38:00] where they come from. Number three is where you stand alongside your peers or your industry. Number four is the percentage of new business versus repeat or residual business. And number five is that 80 20 rule also known as the paraders principle. So that's your first piece of homework.
The second piece of homework is what is a goal. You can set yourself, set for yourself to improve or increase based off of that. Application from the first piece of hallmark. Right? So what's one thing. Again, maybe it's the percentage of your sales coming from outside social media. How can you improve that this month? If you're looking to grow your business off or without social media, how can you grow that aspect of your business, the percentage based aspect of your business, if you will.
That's not coming to you from social media. So that's just one tangible example. Yours might look a little bit different, but hopefully this will help you [00:39:00] guys. Dive into some simple math that can really change your business.
So I hope this episode was helpful to you and some way, and I can't wait to hear what you think. Remember, you can hop on over to these scale without social for female entrepreneurs group on telegram, you can just search it up right. And telegram. And let me know what you think there. Or if you want a direct link to that group, you can text the word podcast to 9 1 2 4 0 5 8 9 1 2. And that will send you the link to that as well. So i cannot wait to chat with you guys more about this i hope you have a fabulous week and be excited and be on the lookout for the next round of interviews that i was telling you about there's some really exciting people that i am just honored to have share their story so get excited friends and can't wait
to see you soon
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