All of the guests have returned home, the holiday decorations are taken down and packed away, the hustle and bustle of the holiday season has passed, and you can finally take a breath! Whew! Another year gone and new one just begun. This year in business will be better than the last. This year will be healthier.
Healthier? How can this year be healthier in business? Well, one way to start the new year off right is to focus on Key Performance Indicators or more commonly referred to as, KPIs.
How good of a job are you doing measuring the vital signs in your business? We all know we need to do it, but how many do? Just as you measure physical health by tracking a few important vital numbers, like, heart rate, blood pressure and body temperature, you can also measure the “vital signs” of your business. The nature of your business will determine which factors should be monitored…We can help with that!
Key Performance Indicators, or KPIs, are great measuring sticks for your business. The key is to figure out which ones are relevant for YOUR business; they are the relevant moving needles. KPIs are not the same for all businesses. A retailer or wholesaler is concerned with inventory turnover and product sales. A legal firm is interested in billable hours per employee/partner per month. A manufacturer is concerned with units produced or gross profit per unit sold. What KPIs are you looking at? Let us help you determine which KPIs you should be monitoring in your business!
Not only is it important to determine which KPIs you are monitoring, but determining how often you look at those KPIs is equally important! Are you looking at them yearly, quarterly, monthly, weekly, possibly even, daily? How many KPIs are you looking at? Did you know that there is such a thing as monitoring too many KPIs?
You see, here’s the biggest thing…we all know we need to measure the important vital signs in our business, but how many do? That’s the thing about business ownership–no one is going to make you! In other words, to whom are you accountable? If it’s you…how good of a job are you doing and how often are you measuring? We stress the importance of this with all of our clients! Let us help you determine which KPIs to measure and how often you should be measuring them. Not only will the health of your business improve, but I guarantee your personal health will as well. You will “feel good” knowing you have the relevant moving needles to move your business forward.
Let’s talk about specific strategies that will ultimately increase the health of your business for 2018!