In 2007, I took my first trip to Ghana, Africa, where I spent more than a week with my professor, Dr. Senyo Adjibolosoo. He is from a small fishing village called Akatsi, which is where he has started a school to give back. On a hot and humid day during this visit, he said we were off to go sightseeing. When I asked where, he replied, “We are going to take a tour down the Lotos River.” I asked him what “Lotos” meant, and he replied, “alligator.”
As we approached the river, I saw I was about to hop into a small wooden boat that seemed to have been built 100 years ago. I boarded the boat with four others, and then we were off. I began to realize the gentleman behind me was shoveling out water as we moved down the river. I also realized that this river was full of alligators we could not see.
I had two problems:
1. The problem I could see (boat taking on water)
2. The problem I could NOT see (the alligators swimming below the boat)
In your practice, there are many daily issues you face to maximize every opportunity you have. It’s fairly easy to identify the obvious problems, but often the ones that are lurking below the surface cause the most trouble.
During the past several years of traveling the country and mentoring advisors, the top three problems I have noticed are the following:
1. Not knowing the business numbers
2. Not knowing the business numbers
You guessed it …
3. Not knowing the business numbers
It is very easy to start off and run seminars, bring in prospects, engage new clients and then repeat that process as many times as possible. You know you are spending money and money is coming in, but do you really know the ROI on the marketing?
Do you really know what your acquisition costs are? Do you know what your conversion is?
All of these business metrics are necessary for you to be able to properly manage your business. I was told once, “Someone who does not know their numbers does not know their business.” So what can we do to get better?