Problem Solving | PX | Practical Advice For Problem Solving
Here is how it works
In this simple drill, these letters are not arbitrary, but purposeful. If you want five kids (P), and wives equals (X) and you only want one wife, then one wife must have five kids; five times one equals five. Let us take it up a notch. You want to make 125k this year. Each customer (X) brings you 20,000 (P) then you need 6.25 customers.
P Equals Profits
When simplifying concerning business, let (P) equal profits. (When referring to profits we are referencing the bottom-line of the income statement. Sales minus cost of goods and all variable and fixed expenses attached to doing business.) Up another notch?
Second Example of P(X)
Okay, here we go! You have two stores (X) and you have a goal to make a profit to the tune of 100,000. How much (P) must each store produce? That is right 50,000. Remember (X) is flexible; it can be customers, locations, marketing pieces, or regions. So keep it simple. Knowing (P), (X), or what you are seeking to produce, gives you two of three variables and in my estimation, you are on your way to finding what you are looking for.
Love the simplicity of P(X) problem solving
If P(X) seems too simplified, trust me it is. Love it for its benefits. P of X is a mark to guard daily pursuits and it does not disappoint. Here in lies the magic. Out of the novel and frequent glitch that bombards entrepreneurial life, evolves a seasoned problem solver. You. Remember the one equation that even applies to a lemonade stand. Never leave home without your P(X) lenses. Remember, when (X) is number of occurrences needed to achieve a goal, solve for occurrences and then enjoy the mental sunshine. Let your (X) be (X) and your (P) be (P).