Your Business Check Up in 5 Metrics
How do you take the pulse of your business?
I recommend doing it as objectively as possible by picking a small set of numbers that you examine on a weekly basis to assure yourself that everything is on track and moving forward as planned.
Each business is a little different, so you’ll need to understand the metrics that matter for your organization. A few that I often recommend include:
- Number of sales contracts
- Number of sales appointments
- Closed business in dollars
- Customer satisfaction through both qualitative and quantitative methods
- Gross margins in percentages
In order to manage this data effectively, set a weekly goal for each. Assign one person to manage each number—and be accountable for it. When that number gets off track, look to the person in charge of that particular metric to create an action plan for realignment.
You might manage and track these numbers in Excel, or another program you find helpful. I also recommend keeping 13 weeks of data (1 quarter) for reference at a glance so you can spot trends over the long-term.
By setting and measuring these five metrics consistently, you’ll always have a strong sense of the health of your organization, eliminating surprises and providing plenty of insight for improvement.
What metrics do you find helpful? I’d love to hear from you in the comments.