For those subscribers who don’t deal with numbers, you must be getting bored by now. My apologies. Usually my messages are short, but sometimes I do a lesson that is longer.
Tomorrow it will be shorter…I promise.
So in my first “Spread” message, I mentioned something about how much he Spread should be. That’s up to you and what you feel comfortable with for your kind of business. Let me just share a bit more.
I have a 5 million dollar business where I keep the Spread at $600,000. If it goes below that, I get nothing. If it’s above that, I take money out.
I have a 24-million-dollar business where we keep the spread at 1.2 million. We think that’s safe for us.
I have a $150 million dollar business where we keep the Spread over 10 million (not including inventory).
If you have a $ 300,000-a-year coffee shop, you should pick a number to keep your spread at and not take any money out unless the spread it is over that number. Leaders eat last.
Sleep well my friends!
Thank you Larry!
The “Spread” information has been very helpful! I always look forward to your emails.
Have a great weekend!
Jeff Overman
Thank you for being specific with the numbers and for sharing your insights with us. No need to apologize for lengthy emails, the more detail the better! I would love to hear about your process of acquiring new clients and bringing in more work for your businesses (especially in relation to less ideal economic conditions). Also, funny photo and cant wait to hear the backstory. Take care!
Wow!!! I never thought of doing this. I love it!
Hello Larry, is there a place where I can reread the info about “The Spread”? I kept the email but I can’t remember how to calculate the spread and what it refers to. Please email me where I can learn about this topic again. Thanks, Maude Swearingen