Know your math

Intuition, gut instincts and luck can give you a good start but at some point, if you don’t know the numbers you will hit a ceiling.

You might have wonderful food at your restaurant but if you don’t know the costs of production (ingredients, labor etc) you wont be able to price the food properly.

As a farmer you have great land but knowing what to plant, how to price, when to change the crop based on the numbers is what will make the difference.

A volleyball coach might want his players to go for aces on their serves but they would also need to know the ratio of services to side outs and know what is and isn’t acceptable.

A real estate investor might get by with information about location, construction knowledge etc for awhile but if they are looking to cash flow, they need to know the acceptable rate of rental income over purchase price (plus renovation cost) in order to truly make informed decisions.

A salesperson might be very outgoing and persuasive but would need to know the likelihood of a successful sale based on one more contact to determine whether making one more contact is worth it vs pursuing a new contact.

Some people love math (I don’t) but if you don’t know the math in your industry, you will inevitably struggle long term

Have a great day!

Lawrence

Discussion Area - Leave a Comment