CARE AND CASH?

Unit level economics, what does it mean? It means money in your back pocket. So if I'm looking at buying a franchise or think about home care in this particular situation, I'm really interested in unit level economics. You can't run a successful business unless it's profitable. So it's really important to make sure that the business that you're starting can be profitable. And how do you do that? What are all of the different nuances?

One of the key things I think is really important is to think about getting the right panel of people around you. And one of the most important ones is an accountant and thinking about getting into the forecasting, someone that understands the sector that you're in, someone that understands franchising and really can support you through that journey.

Where I have created a lot of success for myself, has been through understanding the numbers I've just got in the year fine. And forecasting for the numbers in the year ahead and then breaking it down into 90 day segments and saying, hey, cool, so in the next 90 days, this is the number I'm trying to achieve, working with my team, with my franchising team, whether I be a franchisee or franchisor, and also with my accountant, say what's realistic, what do I need to do? Break it down, give me the management accounts and tell me how many units of business do I need to sell in this time frame every day, every week in order to hit my target there.

And what is realistic? And I think really focusing on understanding the numbers. So there is gross profit and net profit. And gross profit is the difference between the top line, you know, the, in home care, that's the hourly rate and the cost of providing the service, which is the Care worker in our situation. And the difference in between is gross profit.

And then once you've got through all of the administrative costs, you know, your office staff, your rent, your everything else, then you're left with your what's left for you in your pocket, and that's the net profit.

Now, you want these numbers to be healthy. You want these numbers to really work. And you need to work with people, accountants and franchisors that understand those numbers. Really understanding what percentage of my staff should be associated to my top line, what percentage of my rent should be associated to my top line, what percentage of the bottles of water should be associated to my top line. Really drilling down, understanding the benchmark data and working with people that really go through the data there, because that is how you're carrying. Growing a scaling business.

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