A ‘magic number’ is our term for how much money you need to hit in sales each week, or each day. For example, let's say you're running a hair salon, you might want your team to work towards a daily target because you're a high-transaction business and you really need to keep an eye on that each day; even like a pharmacy or any sort of a high-transaction, low-value dollar per transaction.
We've got a client who might send three invoices a month, which add up to a hundred grand - it's a bit impractical for him to calculate this and do daily tallies on it, so it depends on your business model. At Inspire, we calculate it to aim for each week, and we report on it every day. So for the week, we're aiming for XX amount of $, and we're X out of Y for the week.
Your ‘magic number’ target should be made up of the following:
Business expenses - Every single thing you need to pay to run your business,
Cost of goods sold,
Your pay - This is your reward for your personal skill and effort,
Profit target - We’re not in the business to have a job. If you’ve got profit after your pay, that’s going to count towards your business value,
Debt repayments - Don’t forget to factor this in as well!
One of the things I recommend you do: Obsess about it - really know what your magic number is. Every single person at Inspire could tell you what our weekly target is - that's how prevalent it is in our team. And again, we report on this every day at the end of the day just to see how we've done.