Full Course Meal

Sharing the good and bad of starting a business…As it happens to us! Sometimes it’s not so pretty.
RSS

The perfect Ratio, What is it?

June17

Now that we’ve been doing this, “working on our own”, thing for a few weeks now, I’ve determined that there has to be a perfect [cash work v.s. building work] ratio.

This may sound a little confusing so let me explain. Out of every day my wife and I work on our own, we have 2 major objectives and goals we need to accomplish:

1) Do things that will bring in Cash [hereinafter known as "cash items"] (If we don’t have Cash, we don’t have possible business growth, but more importantly we don’t pay our own personal bills [or eat]).

2) Do activities that are geared towards growing our businesses for the future [hereinafter known as "growth items"] (not necessarily providing funds for us on a daily basis, but making our businesses more complete.)

Now that you can see our daily goals objectives, what do you think our daily schedule should look like?
-Do we spend 50% of our day on cash items and 50% on growth items (50/50 ratio)? How can we make enough cash if we only spend 50% of our day on cash items?
-Or do we spend 80% of our day on cash items and only 20% of it on growth items (80/20 ratio)? How can a business grow if you only spend 20% of your days on growth items?

Remember out of every dollar (USD) we make, we only get to use 40% (this is explained in “The 30% Rule” post) of it (.40 cents) on our businesses and ourselves personally (after withholding income tax).

We don’t know what the perfect ratio is and would love to hear from someone that has a better idea.
Please post your comments if you have them, we would love to hear from you.
~Chais Meyer

posted under Help Wanted

Email will not be published

Website example

Your Comment: