Category Archives for "Financial Intelligence"

Ever feel like a unicyclist stuck in a foot of mud?

“Grow your business.”

You’ve heard that before. And while you can grow plenty of other things (vegetables, your hair, sea monkeys), maybe the whole idea of growing your business has so far eluded you.

You can get traffic to your website or store. You can make sales. Maybe you can even bank a little profit. But sometimes it feels like there’s an invisible ceiling that’s capping your earnings. And if you could just break through that ceiling, you’d enter a new tax bracket. You’d take your business to the next level. You might even start enjoying a new lifestyle.

But nothing quite works.

You feel like a unicyclist sinking in a foot of mud – you try and you try, but you don’t budge an inch. You don’t move forward or back. You just stay stuck – working so dang hard but not getting anywhere fast.

Until now, that is…

Introducing the iBusiness Owner membership site – your ticket to growing your business!

>>> You can check it out right here:

This is NOT some irrelevant collection of materials or some basic “how to start a business” information. Instead, these are proven strategies that you can use to grow your business. You’ll discover profit-multiplying strategies such as:

* How to turn more browsers into cash-paying buyers.

* Which kind of products or services put the most profit in your pocket.

* How to generate more revenue on every transaction.

* How to turn one-time buyers into repeat customers that generate hundreds if not thousands of dollars in extra income for you.

* How to expand your market reach to beat your competitors and get a bigger piece of the market share.

And much, much more!

You’ll enjoy learning about and employing some of these strategies from your first month as a member. And every month thereafter you’ll discover still more ways to grow your business.

Bottom line, if you want to see real results – if you want to finally learn how to take your business to the next level – then visit

And do it now, because the sooner you do, the sooner you’ll enjoy rapid growth and increased profits!

Best regards,

Dave McGarry

Knowing your Break Even will Help You Make A Profit

Yesterday, I wrote a post entitled ” Are You Making This Mistake in Your Small Business” and I revealed to you a shameful mistake that I made and pointed out that I believe many small business owners do as well. Today, I want to talk to you about the main reason we do business. First of all, let me ask you a question, “Why are you in Business?” Now, I assume your answer is to make money or a make a profit. With that being said let me ask you another question and that is do you know how many units or services you need to sell to Break Even and eventually make a profit? If we agree that we are in business to make a profit then it is equally or even more important to know when the business will become profitable.

Let me tell you finding this number out for me and with my business has been the best thing that could have happened to me. Like I said in yesterday’s post they teach you this the first day in business school but I, like most of us, just pushed ahead because we are ambitious to make things happen and start our business. This is a mistake though because not knowing when the business is going to be profitable leads to the business failing. Knowing when you become profitable allows you to plan how much cash you will need to have on hand to stay afloat until the business can generate positive cash flow.

Going through this with my business has been a life saver. I know now exactly when I will start making money and can plan sales and lead conversion goals around the number of sales I need to make to be profitable. Before I just started each day doing random things that needed to get done and did not have a planned approach on how many sales calls and lead conversions I would need to make my monthly, quarterly, and yearly goals.

So how do you calcualte your Break Even point?

First, you need to figure out all your Fixed Costs (FC). These include line items such as, rent, marketing, salaries, utilities, operating costs, etc… These items are consistent month in and month out.

Next, you need to figure out your variable costs (materials). Typically this will be the cost of selling each product or the cost to produce.

Then you need to take the price of your product or the average selling price of all your products if you sell more then one and make an assumption of how many sales you can make in a time period. For this exercise let’s say a year.
Now multiply the total number of units times the price of the product to get the total sales.

Below you will see the equation

Total sales(TS) -(VC)=Gross Income

Then take your gross income and divide that by Total sales to get your gross margins

To find your Break Even point you then do the following step:
(FC)/Gross Margin

Here is an example:
FC 5422
VC 200
Product Price 19.95

Units sold 100

Total Sales 1995

Gross Income 1795

Gross Margin 90%

Break Even Sales 6026.95

BE Transactions 302

In this example you can see that my fixed costs are $5422 and variable costs are $200 (you base the VC on # of units sold so for this example I used 100 units and each unit costs me $2 to sell)

Then do all the other calculations and you get to the following result.
I need to sell 302 units at the current price to get a total sales of $6026.95. Once I hit that level everything else is going to be profit.

So, can you see how helpful it is to know your Break Even point. Listen, if you ever want financing or investors that is one of the first things that they are going to ask for.

Go figure yours out now and if you need help you can contact me.

Stay tuned for the next post where we talk about your “Score Card!”

To Your Success,

Coach Dave

Do you know what your Financial IQ is?

Hello everyone! Happy Friday! I mentioned last week that I was going to start a new weekly post that talks about financial intelligence, so this week I have a simple question for you, but before I get to that let me answer a question I received from a reader on financial intelligence. Dave, “Why should I care about financial intelligence? I come in do my job get paid and make a decent living!” Making a great living is great and most of you probably are more interested in reading something else or more interested in seeing what your friends are doing on Facebook. That is fine but I have decided that my intent for this blog going forward is to help people create a life that allows financial freedom. For some of you having a good paying job is all you are gong to what out of life, but for a few of you I know you want to create a life that allows you to live your dreams and have the freedom to do what you want. So, with that being said, if you aspire to have financial freedom then these weekly posts are going to be helpful for you!

Okay, moving on to the topic today, Financial IQ. What is your Financal IQ? Don’t worry I had no idea what mine was until I started reading and studying Robert Kiyosaki. In his books he lays it out in a simple way, so I thought that instead of me trying to explain why don’t I let him explain it to you. Check out this link and read the short post. Once you have done that you will have a better idea of what the heck I am talking about when I say Financial IQ. If you are anything like I was when I first read it I was shocked at what I thought I knew and what I thought were assets.

Let me know what your Financial IQ is by posting your comments.

Until next week,
In health and wealth
Caoch Dave