Your Average Dollar Sale

4) Average Dollar Sale: Here's one variable that at least some business owners do measure. Once again, some might spend $5000, some just $5, but the average is what you're after. Just a few dollars on each and every sale could be all it takes to calculate. Add up your total sales and divide it by the number of sales.

Your Turnover

Your Turnover: Another result. Multiply the total number of customers you dealt with by the number of times they came back on average, and then by the average amount they spent with you each time. That's your turnover. Put simply, Customers x Transactions x Average $ Sale = Turnover. This is another area most business owners will know the answer to. Yet they most probably have no real idea how they got to it. Of course, you want more of it, but you can't get more turnover. What you can get is more transactions and a higher average dollar sale with the total number of customers you deal with.

Your Margins

5) Margins: This is the percentage of each and every sale that's profit. In other words, if you sold something for $100 and $25 was profit, then you've got a 25 percent margin. Remember: This is after all costs are taken out. It's potentially another little gold mine for you to tap into.

Your Profits

Profit: Another result that every business owner wants more of, not realizing that you can't get more profit, but what you can get is greater margins on the turnover you've got.

And that's it.

The Business Chassis I outlined to Charlie is the basic model that dictates the profit levels of every business on earth.

By simply breaking down your business and marketing efforts (selling is married to marketing) into these five areas and understanding how each affects the other, you're halfway there-and way ahead of 90 percent of businesses out there. 29