Read on Twitter
Have you heard the term sufficiency and TMR (target monthly revenue)?
They are both important to understand for your business
Let’s discuss both. A short thread..
They are both important to understand for your business
Let’s discuss both. A short thread..
Sufficiency
-The point where a business is bringing in enough profit that the people who are running the business find it worthwhile to keep going
How do you track sufficiency?
-The point where a business is bringing in enough profit that the people who are running the business find it worthwhile to keep going
How do you track sufficiency?
Use TMR
-With a business comes expenses and you typical have to pay them on certain times or as you purchase goods
-It’s relatively simple to calculate how much money you’ll need to pay out each month/week/two weeks etc...
-With a business comes expenses and you typical have to pay them on certain times or as you purchase goods
-It’s relatively simple to calculate how much money you’ll need to pay out each month/week/two weeks etc...
TMR helps you determine whether or not you’ve reached the point of sufficiency:
-As long as you bring in more than your TMR, you’re sufficient
-If not, you have work to do
-Sufficiency is subjective—how much is enough to continue what you’re doing is a personal decision
-As long as you bring in more than your TMR, you’re sufficient
-If not, you have work to do
-Sufficiency is subjective—how much is enough to continue what you’re doing is a personal decision
-If your financial needs are not much, you don’t need a lot of revenue
-If you’re spending millions of dollars on payroll, office space, and expensive systems, you’ll need much more revenue to maintain sufficiency
Do you know your TMR? You should if you want to be successful
-If you’re spending millions of dollars on payroll, office space, and expensive systems, you’ll need much more revenue to maintain sufficiency
Do you know your TMR? You should if you want to be successful
