Been a long time coming:

I have been lagging on the blogging. Not to make any excuses but we have been so busy and more importantly eight weeks ago my second child, Lincoln Michael O'Brien, showed up !

As the business is coming out of its infancy and into being a toddler, I thought I would share some success metrics that we use.

Break Even Point: We have been going at this almost a year now and have hit an important milestone. BEP (when ones expenses match ones income) is a powerful place to be. At this point any additional sales profit that occurs drops directly to the bottom line. Basically, from this point your free cash flow and ability to deploy it effectively determines how profitable you are as a business.

Key Indicators: In every business there are leading indicators that provide insight into how the business is doing. The faster you can understand these and develop a measurable metric the closer you are to the pulse of the business. We created the MMX(marketing multiplier) which is our expected return on each marketing dollar. So if we spend $1 of marketing we expect a profit yield of 3.2 or $3.20. We then order all of our marketing by the MMX and allocate our budget appropriately. With this tool we can also update our marketing on a real time basis. We can compare the instant MMX (same day yield) and the tail ( days 2 through 365).

Good luck with finding your key indicators!

Cheers,
Mike