Know your Numbers: What Key Metrics Tell You About Business Growth Strategy

Today, as you can see, I am at the airport.

And if you look at this device behind me, it’s called the wind sock, little orange and white device which tells pilots what direction the wind is blowing, and at what speed.

Which is important when you’re landing, because you need to configure the plane and be able to react and prepare for the direction and speed of the wind.  And each one of those little sections is about three knots, or five miles an hour, so anywhere between 15 to 20 miles an hour of wind, and right now it’s gusting and it’s changing directions.

It’s a little bit challenging to land in situations like that.  At least you’ll need your wits about you.

So what’s this got to do with business?

Well, there’s certain things in your business that you want
to know the velocity and direction of, as well.

For instance, cash flow.  You want to make sure that you’re clear that your cash is growing and at what rate, or if it’s declining.  If you’re going negative cash flow, you’ll want to also know at what rate, so you can do something about it.

So you can look at your KPIs on your dashboard to show what’s happening with your cash flow, and you can take action so that you don’t get blown off the runway as it were.

If you’re looking at lead flow,  how many leads are actually coming in?  From where?  Are we increasing our leads or are our leads decreasing?  Are we converting more of our leads or less of our leads?

Having an effective dashboard in place is a critical component to be able to manage your business well and to be able to scale.

Just a quick one today from the airport!

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