In order to build a successful business, you need the right data and information as valuable insights. Hence, you need to familiarize yourself with variety of business metrics when deciding to run your own small business. Business metrics include sales, customers retention and turnover. Tracking variety of metrics will help you navigate your business more effectively because you make decision based on the best insight. However, it is also just as important to know what metrics you need to track.
Tracking the right business metrics
There is variety of data and information you can gain easily especially with how advanced the technology has become today. The problem is, you may not need all of them. In fact, just tracking without knowing what kind of information you are trying to look for is pretty useless. Hence, it is best to also know what business metrics you need to track. And here are some of them you need to know about:
Sub-products
You may have main products that you keep tracking to know the flow of your business operation and progress. However, remember that you also have sub-products to track because they contribute to your main products. The growth of sales of your sub-products play important role to accomplish your main goals. Hence, track them regularly and periodically to measure them.
Return of Investment
Return of Investment or ROI is essential business metric you need to keep tracking. Calculating your return on dollar spent is important to make sure you are running your business properly. Neglecting this data is just equal to running a nonprofit. Always track your ROI per expense to utilize every key data point needed for your business to grow successfully in the long run.
Financial performance
You need to monitor your business’s financial performance by tracking the cash flow. Only this way, you will be able to align the metrics with your business’s performance. A healthy cash flow is key to promising business growth. This way, you will be able to find out if there is something that needs to be corrected right away.
Growth
It is one of the business metrics that matters the most for your business. The growth here include the growth in mindset, in business, in employee engagement, in customer satisfaction, and in human capital. By tracking this metric, you will be able to build optimism, integrity, and sound judgment better. It makes your business more agile in stepping out comfort zone and embracing challenges. It helps build your business’s dynamic because stagnancy is not a choice in today’s dynamic economy.
Growth of employees
Your employees are valuable assets you have to take care of. Hence, it is important to track their growth regularly. Tracking this metric allows you to figure out how to set standards for the most effective job descriptions. This metric provide insight if your employees are growing and able to take more challenging responsibilities. Keep in mind that behind growing business are growing employees. Their growth matters the most not only to themselves but also to the company.
