Monitoring your business metrics helps!

To successfully manage a business, you need more information than just your sales figure and profitability.

One of the key sets of information that you can have is “metrics”.

Why?

Metrics enable you to track, monitor and assess the success or failure of various business processes. This will enable you to identify your firm’s progress to achieving your objectives, both long-term and short-term, which might not be evident from just reviewing your profit and loss account.

Metrics can incorporate KPIs as well as many other aspects of the business operation, which might not be reflected in the financial terminology to which KPIs normally relate.

Metrics are numbers that measure your performance. There are 3 kinds of metrics: long-term, short-term and financial health.

Metrics suitable for most businesses include the following:

Short-Term Metrics:

• Number of new customers as compared to previous periods

• Quotations resulting in sales

• Mentions of the business in the news media

• Website visitors

Long-Term Metrics:

• Expansion of the customer base

• Revenue growth in newly developed products

• Percentage of the leadership team who have completed “corporate governance training”

• Growth of your business compared to similar businesses

Financial Health Metrics:

• Revenue growth percentage

• Debt ratio

• Debtors days outstanding

Comparison of your financial performance to similar businesses through a benchmarking process

Companies that are committed to “scaling up” need the data produced by metric evaluations of the company’s performance to guide the leadership team.

Towers Business Development can assist in conducting a business review to determine suitable metrics for a company to adopt. Want to know more? Contact us on 1800 232 088 or email .