Would you like to get an accurate idea of your business performance but don’t know what exactly to look at? In this video, I go over important metrics for measuring success in your business and how you can identify the changes that you need to make in order to scale.
First of all, it’s important to keep in mind that there’s only a few indicators you should be measuring. The question is: How do you determine which indicators to look at?
Well, it’s important to figure out what it is that you want to change. If you want to change your profitability, then it’s a good idea to measure profits. If you want to change the quantity of your sales, then you should look at sales. The change you want to see will ultimately determine your metrics for measuring success.
So, which metrics will be most likely to tell you about your business performance? For this, you’re going to have to look at both lagging and leading indicators.
A lagging indicator for sales would be how many sales were actually made. Lagging indicators are helpful because they show us patterns after the fact. A leading indicator in the case of sales would be prospecting activities. Things like, how many proposals did you make? How many people did you talk to over the phone or face-to-face?
Once you can see the data for the lagging and leading indicators, you can take action to change the activities leading to the outcomes you want. The value of these different metrics for measuring success is that they allow you to focus your time and energy. If you want to improve your overall business performance, getting clear about what needs to change is a crucial first step.