If you don’t know these 3 numbers, you’re “scaling” blind…

If you don’t know your numbers, scaling is like trying to fill a bathtub with the drain wide open.

But three numbers matter more than any others in your business.

And with just these 3, I can pinpoint exactly what’s blocking your growth…

What are they?

→ 1. Close Rate

→ 2. Lifetime Gross Profit (LTGP)

→ 3. Cost to Acquire Customers (CAC)

You need a pulse on these numbers—monthly at the very least.

Here’s why…

→ 1. Close Rate (%) – Can You Actually Sell?

Formula: Clients Sold / Sales Calls = Close Rate %

🔴 <20% → Lead quality is off, or your sales suck

🟢 >40% → Congrats! But… you might be charging too little

→ 2. Lifetime Gross Profit (LTGP) – The Real Bottom Line

Formula: Lifetime Value (LTV) - Fulfillment Cost - Sales Team = LTGP

LTV alone is a vanity metric.

Profit is what fuels growth. The more you keep, the more you can reinvest and scale.

→ 3. Cost to Acquire Customers (CAC) – The “How Much Are You Really Paying?” Number

Formula: Marketing Spend / Clients Sold = CAC

Most founders know how much they’re throwing at ads… but not how much it actually costs to get a customer.

Now, here’s Where the Magic Happens…

If you know LTGP and CAC, you unlock The Mother Ratio:

LTGP / CAC = The Truth Serum

⛔ <1.0 → You’re losing money on every customer

⚠️ 1.0 to 2.0 → You’re treading water, but scaling will sink you

🚀 3.0+ → Ready for scale - keep spending that marketing moolah

If your ratio is <2.0…

- your profits per customer are too low (LTGP needs a boost)

OR

- your marketing is leaking money (CAC is too high)

Simple rule: Divide your LTGP by 3, and that’s your ideal CAC.

But please, don’t keep stuffing Zuckerberg’s and Elon’s pockets without knowing if it’s actually making you money.

Track these:

✅ Close Rate

✅ LTGP

✅ CAC

Know them. Love them. Use them.

See you next Thursday 👋

PS. Whenever you're ready... Here are three ways I can help you become more replaceable:

1. Get actionable tips on systems & productivity weekly → Join
2. Learn how to use ChatGPT to create SOPs in minutes → Free Access
3. Learn how to streamline and scale operations to 7+ figures → Boost Ops

More recent posts ⤵️