The principle in question revolves around the idea that if you don’t measure something, how can you know whether it needs improving? Or indeed, how do even you know when you have actually improved it?
The key metrics for every business will vary, but ultimately drive exactly how much revenue your business generates. And importantly, how much of that you get to keep.
I’m talking about questions like;
- Where do all of our clients come from?
- From all the people walking into our business, what percentage do we convert to paying customers?
- How often does each of them purchase from us?
- How many of our services does each client use – and how many more could we be cross-selling?
- How much does it cost to have the doors open today, whether we make one sale or one hundred?
So, how well do you know your business? Tapping into those type of numbers could easily allow you to increase your profits significantly as once these things are measured, steps can be taken to improve them.
Drop us a line if you’d like to talk about how to measure the key metrics for your business. We’d love to help.