Take the quiz!

Question 1

Are you able to pay yourself EASILY the money you need from your business to cover all your monthly bills?

(If you need to juggle the money so you can invest in your company or to cover the cost of your living, then the answer is NO)

If No, go to question 3

Question 2

Are you able to pay yourself to easily cover the cost of your lifestyle?

(Lifestyle costs are significantly higher than cost of living. Lifestyle costs include things like:
going on great holidays frequently, visiting a spa whenever you want, buying very good quality clothes. It is all about being able to have a very comfortable life instead of covering only the bills and paying for food.)

Question 3

Do you pay yourself only from what is left after you cover all the business costs?

(Does this leave little, if anything for growing your business, hiring new people, increasing the marketing budget, investing in courses or tools/equipment you need to produce your goods or deliver your service?)

Question 4

Do you set prices without precise calculations but based on your hunch, or based on the prices that your competitors have?

If the answer to question 4 is YES then go to part III and skip questions 5, 6, 7 and 8

Question 5

Do you estimate future costs of your business to calculate the price of your products or services, or do you use the costs from previous years?

Question 6

Do you know precisely how high the margin is on each of your products? Margin is responsible for generating pure profit – it should not cover any business costs, including the money you need for your living costs.

Question 7

When offering promotions, discounts, or commissions for JV partners, do you know precisely the level of the margin of your discounted product/service that will generate pure profit and will not have to cover any costs including your salary?

Question 8

Do you know precisely how much money you need per product or per service to be able to
deliver the product/service to the market?

(In other words: do you know precisely how much of your fixed costs, investment costs and your salary each of your products or services should cover so you know what is the absolute minimum price that you can offer to your customers?)

Question 9

Do you know what is the absolute minimum profit (do not include here the money you need as a salary) that your business needs to generate in the next year so it can grow smoothly?

Question 10

Do you recalculate the break-even point in your business at least 2 times per year?