Summary of Norm Brodsky & Bo Burlingham's Street Smarts

By IRB Media

Please note: This is a companion version & not the original book.

Book Preview: #1 I was interested in finding out how much I could teach people about business. Could I take a couple who weren't businesspeople and show them how to create a successful business. I wasn't sure, but I was curious to find out.

#2 After hearing the goals of the business owners, I wanted to see if their plan was viable. I wanted to know if they had a real business or not. I asked them to reduce their expenses and put some money into the business. They had to cut back on their spending.

#3 The next day, they fired Helene's assistant, Paula, explaining that Bobby was coming into the business and it couldn't support both of them. As Helene put it, it was reality smacking us in the face.

#4 The most important number in a new business is gross profit. It determines everything about your business, from the amount of capital you need to the volume of sales.

• Language: English
• Publisher: IRB Media
• Release date: Feb 16, 2022
• ISBN: 9781669348337

IRB Media

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Book preview

Insights on Norm Brodsky & Bo Burlingham's Street Smarts

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 5

Insights from Chapter 6

Insights from Chapter 7

Insights from Chapter 8

Insights from Chapter 9

Insights from Chapter 10

Insights from Chapter 11

Insights from Chapter 12

Insights from Chapter 13

Insights from Chapter 14

Insights from Chapter 15

Insights from Chapter 16

Insights from Chapter 17

Insights from Chapter 1

#1

I was interested in finding out how much I could teach people about business. Could I take a couple who weren't businesspeople and show them how to create a successful business. I wasn't sure, but I was curious to find out.

#2

After hearing the goals of the business owners, I wanted to see if their plan was viable. I wanted to know if they had a real business or not. I asked them to reduce their expenses and put some money into the business. They had to cut back on their spending.

#3

The next day, they fired Helene's assistant, Paula, explaining that Bobby was coming into the business and it couldn't support both of them. As Helene put it, it was reality smacking us in the face.

#4

The most important number in a new business is gross profit. It determines everything about your business, from the amount of capital you need to the volume of sales.

#5

To help them get started, I took them through the steps of calculating their cost of goods sold and their gross margin, and showed them how to break down sales by category and calculate their cost of goods sold and their gross margin. I then took them through the process of doing monthly cash flow forecasts, from which they could put together a cash flow statement for the year.

#6

The business plan process teaches you what needs to happen for the business to survive. With Bobby and Helene, I was breaking down survival into terms they could understand and numbers they could monitor.

#7

You should be asking yourself how much less revenue you’d get if you charged more. Gross and net profit lines are far more important than sales. If you are unsure if your additional sales are worth it, don’t cut prices.

#8

The first two rules of every new business are to protect your capital and maintain a high monthly gross-profit margin. Do not go after any low-margin sales.

#9

The sales mentality is fine