Hey, it's the Profit Mastery team.
Two of the smallest payrolls in baseball just met in the World Series.
Meanwhile, the biggest spenders watched from home.
What does that have to do with your business? More than you'd think…
THIS WEEK'S ARTICLE
Winning on a Budget
Colin grew up in Milwaukee. So yes, he's a little excited about the Brewers right now :)
But the real story is the payroll. The Dodgers spent roughly $340 million on players this year. The Brewers spent about $146 million. The Rays spent even less (27th in the league).
Most small business owners will never outspend their competition. So how do you win anyway? Colin pulls two lessons from the small-payroll teams:
Build a better team, on purpose. Hire A+ players, then give your expenses a salary cap. Start with sales, subtract the profit you want to keep, and what's left is your spending budget.
Exploit the inefficiencies. Find what the big players overlook. The Rays did it on the field. Cooper's Hawk did it with a wine club that now has more than 800,000 members.
The whole article is free this week. Give it a read…
WORTH A LOOK
A few finds from this week
Labor Costs Keep Climbing
44% of small business CEOs say their costs are rising faster than inflation, with wages near the top of the list. Yet 58% still plan to add staff. That's exactly when a salary cap earns its keep. (Vistage)
More Output per Payroll Dollar
46% of small employers now use AI. And the owners using it are more likely to be hiring, not less. (New York Fed)
ICYMI
How a business works: the loop every dollar follows, from assets to sales to profit and back. (Last week's newsletter)
UPCOMING
What's on the calendar
PMU Virtual Bootcamp
December 1 to 17, Tuesdays and Thursdays, 2:00 to 4:00pm ET (virtual)
Six live sessions with Colin, recordings included
Free for members; from $495 for non-members
Want the printed workbook? Print orders close Friday, November 20.
One quick exercise before you close this email.
Take last year's sales. Subtract the profit you want to keep this year. That number is your salary cap for every expense in the business.
Now look at payroll. Does it fit under the cap? Or is it eating the room you need for everything else?
Hit reply and tell us what you found. We read every one.
Thanks,
The Profit Mastery Team
Know your numbers. Command your cash. Scale with confidence.
This newsletter is for education, not personalized financial or investment advice.