I just couldn’t figure it out.
I was making good money. I was bringing it in but I had nothing to show for it. Do you feel that way? Frustrating, no?
I just couldn’t get past that mythical point of making it big.
Then I discovered the Make/Break point and how to use that to my advantage.
Once you learn your make/break point you too can make the money that you’ve always dreamed about.
What is the Make/Break Point?
The make break point is the point where income exceeds bills and spending.
You may have heard of it expressed as being in the black or being in the red. But the problem with that analogy is it doesn’t tell where exactly that point is of you being in the black. Also, it is limited in scope.
You can be in the black on a particular job but still, be in the red as a company.
Being “in the black” means you are making money. Being “in the red” means you are not making money. That all these two do. They don’t tell you where you are actually being profitable and #stackingthatcash.
The make break point is very simple: When your business is bringing in more money than it can possibly spend then you are above the make/break point.
The Make Break Point seems like Common Sense.
I know that it seems too simple. That statement seems like it’s common sense. But the truth is: too many of you have no clue where your make break point is for yourself personally or in your business.
And because of this you often stressed out. Your worried about making payroll even though you are killing it with the number of jobs you have and so forth.
The biggest killer of people starting any business is that they think that they know everything and that they don’t have to truly discover or know where the make/break point is.
Not even big-time multi-million dollar business owners have enough knowledge to even describe or define the make/break point. I can think of some top names right now that we all know and some of you even follow that couldn’t tell me what their make/break point is.
There are about 2% of you that this just comes naturally to. And for those of you (I am not one) I say you guys are gods. I am not worthy.
So don’t make the mistake of blowing this info off because you think that this is so simple that monkey could do it. That attitude will kill your business.
Instead, try studying this data and applying it so that you too…can get rich!
6 Steps to get above the Make/Break Point.
There are 6 simple steps to determine what your make/break point is for your business, or even in your life.
- List out all your bills individually and how much owe to each creditor. Put in a spreadsheet. List them out from the oldest to the newest.
|Bill||Amount||Date of bill|
|Box company||$1000||1 June 2017|
|Sprint||$200/mo = 2400/yr||1 Jan 2018|
|Truck||$50000||1 March 201|
- Pay each bill off one at a time starting with the oldest bill first. In our example above you’d pay off the Box Co. first. Not the biggest bill. Dave Ramsey has it wrong.
- If the bill is too high then you may have to set up a payment plan with your vendor or lender.
- Just pay minimum payments of those recurring items that could result in the confiscation of property like Mortgage or vehicle loans. (It may be advisable to stop paying on your credit cards…however, by doing this will cause temporary credit damage. Credit will improve once the bill is paid using this system.)
- Send a letter to each of your creditors/lenders/vendors explaining to them that you have every intention to pay them back and in full but that you’ll pay them in order from oldest to newest.
- Should any creditor threaten you with the court and they have the means to do so then pay that creditor off first. Note: just because a creditor threatens with taking you to court doesn’t mean they can or have the ability to do so. For example, if you stop paying on a credit card they may threaten you with the court but they can’t do anything about it in reality. So essentially, you can just blow them off and continue with the plan.
- Set up a purchase order system for all new purchases. Inform any new and existing creditors that no bill will be paid without a purchase order number.
- And if any new creditor comes dunning you and demands payment immediately ask them for the purchase order number. Do not accept any bill without an approved purchase order.
- Get yourself a good online accounting software. I especially like Quickbooks because it’s easy to use and does everything that you may need.
- Most moving company CRMs like Movegistics are very good at reporting and such and many of them, like Movegistics, integrate with Quickbooks Online.
- Get yourself a good business accountant. You don’t have to have them work in your business every day. Just have them review your books every month or quarter. And definitely have them review your books every year. A good accountant will help you set up a purchase order system. Just make sure that you pay them on a purchase order system too.
- Finally, you want to set up income goals and demand and expect them to be hit. Not only for yourself but all your employees too.
A Purchase Order System is Vital to the Success of your Make/Break Point.
For most of you, the concept of purchase orders is brand spanking new. I know many of you have never even heard of a purchase order. And when you did hear of it, it went in one ear and out the other.
Like I said in Step 5 above, and a good accountant will educate you on a purchase order system and how to use it effectively.
If you don’t want to do that then there are many great easy to learn videos on YouTube.
Educate yourself and get rich!
Get Rich by getting above the Make/Break Point
Knowing where your personal and business make/break point is if THE KEY to success.
Without it, you are just guessing and many of you will flounder and never achieve the money and lifestyle that you wanted when you started your business.
You didn’t start your moving business because you wanted a job. You can get a job anywhere.
No, you started the business to create a lifestyle that you’ve always wanted. And you can’t have that unless you know where that lifestyle begins and ends.
This is why the make/break point is so vital to your success.
I hope that I’ve taught you so good business lessons here. I hope that you take this info to heart.
I want you to succeed. I want to see you at the top. So get above that make break point and prosper.
Go and do something Great today!