In today’s world, we are continuously working towards tackling obstacles and learning new skills. And, at times it can be very overwhelming, especially in recent circumstances where there has been a lot of uncertainty and presumably, a lack of sales. With that being said, now is a perfect opportunity to look at where you are and determine whether you are where you want to be…
If you haven’t already, take a look at our previous blog post: Your last 90 days, where we share the 3 main tools every business in order to prepare for the next 90 days, going in to the new year.
So… How do you determine where you are?
It goes without saying that business success needs to be measured, but what is it you need to measure?
Most successful businesses choose four or five critical numbers to measure. These may vary between businesses, for example, most businesses should know their minimum viable sale number per day or week. In the same way, knowing the gross margin needed to cover your overhead costs and living expenses is critical for many businesses.
Examples of critical numbers might be:
- Number of days it takes to be paid by debtors
- Return on investment by each team member
- Average value of each new customer
Once you are aware of what numbers you are focusing on, it’s time to find a way to measure them. One thing we find super useful is using Xero Cloud Accounting, which allows us to easily track and monitor our clients business performance. The way you capture your business data, may need altering slighting due to the software you use to measure your numbers – You may need to make changes to the structure in order to make it work to your specific needs.
If you need help working out what critical numbers are best for your business or how to measure them, give us a shout, we would be more than happy to help you!
Phone: 023 8000 1313