130 | Why Comparing Your Numbers Is Holding You Back (And What to Focus on Instead)

When you hear other business owners talk about their numbers, you might not be comparing apples to apples. And this misunderstanding is costing you focus, energy, and growth. In this episode, I'm going to help you cut through the noise and get crystal clear on what actually matters in your business.

so you can stop comparing and start winning your own game.

whatever they are, I hope you're doing a great job of staying on task. So listen, today we're going to talk about the difference between goals and priorities. And if you're struggling with this or you're unclear on what they mean for you and your business, then this episode is for you. Because here's what I know to be true. Most business owners don't struggle with setting goals. They struggle with setting priorities. Let me start with this.

Every sports team starts the season with the same goal. Win the championship, but wanting to win doesn't win the game. The team that actually gets there, they're not necessarily better at just setting goals.

They're better at setting and protecting the priorities. That's what we're going to dive into today. So here's the simple way to think about the difference between goals and priorities. Goals, they're the destination. They are the championship. They're the scoreboard at the end of the game. That's the goal. Win the game, win the championship. Priorities, well, they're the plays.

They're the daily actions that you do to get you towards the goal. They're what you focus on this week, not necessarily someday. You don't change the scoreboard by staring at it. You change it by running the right place. Here's the deal. Most owners are busy. And actually I say most owners. I don't know any business. I don't know any business owners that aren't busy. They're working hard. They're putting in the hours.

they're doing all these things, the challenge is most of them aren't working on the right things.

Most of them are putting out fires, chasing the urgent. They're just being reactive. Every day is a different reactionary thing. And they wonder why the goals never show up. It's not because the goals were wrong. It's because the priorities, they weren't clear. Let's make the difference crystal clear between the two. A goal is going to tell you where you want to go. The priority tells you what you're doing today to get to that goal.

Your goals are going to inspire priorities. They require commitment. Goals live in the future and priorities. They live on your calendar. And this is where a lot of leaders get tripped up. They say things like my priority is to grow my revenue. My priority is to hit 10 million. And those things aren't a priority. That's the scoreboard. That's the goal.

priority is the play that gets you there. So think about it like hiring, training, marketing, leadership, ⁓ systematizing your business, getting more organized with your business so that it runs even when you're not there. Here's another mistake I see owners doing more times than not is getting in that that trap of comparison.

Owners comparing their businesses to other businesses and other owners. And it happens a lot of times around revenue, margins, and growth. and I want to remind you of something really important. You are not in a race against them. You're in a race against yourself. So let's take this back to football.

Every team in football measures their KPIs the exact same way. So when you look at passing yards from this team versus that one, it's the same. Passing yards are calculated the exact same way. It's also the same for rushing yards. Everybody in football, a field goal is three points. A touchdown is worth six points for every single team. The KPIs in those...

Well, I say those businesses, they are businesses, but in those sports, those KPIs, they're absolutely standardized. Everybody plays by the same rules. Everybody's got all the same standardization that they use, but in business that couldn't be, that's not even close to the truth. That's not even close to how it works because it's all different. So let's dive into some real examples. So let's talk about average ticket.

Right? That's a average ticket is one of those things where a lot of business owners talk about and compare their average ticket to others.

Some companies include $0 tickets and some don't include them. Some take them out. Some blend service and install together and some run them as two separate numbers.

So when you hear someone talking about their average ticket, just keep in mind, you don't always know what is inside that number.

So now let's look at direct labor. Some companies are going to include the training labor. Some break it out. Some companies include PTO on holidays and some don't include it.

Some include right along time and some don't count it at all. Think about it, it's the same label, but it's very different math and very different outcomes to the here's another biggie as well, is there's materials. So some companies expense all materials at the time that they are purchased.

Some don't, some consign all of theirs and they only pull it as it comes out of the inventory. some run inventory and only move cost when materials are used. Same job, different timing, different margins.

So let's dive into this one. This is a really big one. We're gonna talk about gross profit margin, right? Some companies include things like workman's comp, payroll taxes, and benefits. Some also include fuel, credit card processing fee, and finance fees. Some don't include any of that at all when they're factoring in their gross profit margin. So when you're hearing other people talk about their numbers, just remember this. You may not be comparing apples to apples.

That's why comparison without the full picture can be a little bit dangerous. Because if you don't understand the input, the output doesn't tell the full story. And that's why I keep coming back to this. You are not in a race against them. You are in a race against yourself.

The only question that really matters are these. Are your numbers improving based on how you measure them?

Is your execution better than last quarter? Is your team clearer than last month? Are your priorities tighter than last year?

Because progress beats comparison every single time. Championship teams, they don't copy other teams. They execute their game plan better. Think about it. Same field, same rules, different strategy.

So how do you align your goals and your priorities?

You start with one clear goal, not 10, just one. And then you got to ask, what are the three priorities that matter the most right now for me to get to that goal? And I don't think about it like the forever, not next year, but like this month, this quarter, this week.

Then you break down those priorities into weekly actions and you practice. You do the reps.

People are always searching for what a magic bullet is in business to be successful. And here's what the answer is. Here's the silver bullet. Here is the magic ⁓ potion behind what it takes to be successful and grow your business. Consistency. It is all about consistency. And that's really what we're, all of this stuff that we're talking about today, it's really what it boils down to is it is about consistency. You've got to practice, you've got to do the reps.

And you have to be consistent with it because the unsexy daily work, man, that's what you've got to do to win the championship. That's what you've got to do every single day.

All right, so let's talk a little bit about an action step. So for an action step on this, so just write down one goal for the year, just one, and then write down three priorities for the quarter. Now you gotta make sure they're gonna align, but now when you do that, now look at your calendar. Make sure your time matches what matters.

If not, make sure you adjust it so that it matches what your priorities and your goals are. So here's the final takeaway. Goals set the direction, priorities, they drive the results.

Your scoreboard only changes when your priorities change. So listen, Thank you so much for tuning in today. Listen, share this with a fellow leader who could use this and until next time, stay focused, lead strong, and as always keep crushing it.