Metrics, the key to success
When leading with the management of a company, there are many tools which can be used to reach success.
Many entrepreneurs usually start in a solid way, focusing on decisive factors such as optimizing performance, increasing production, etc.
However, in order to move forward and take your business to the next level, you need to gain the ability for gathering and analyzing the relevant corporate information, known as metrics. This is due to the fact that if it can be measured, it can be scaled.
For carrying out this task, interest points which indicate higher relevance are chosen and then a measuring is done between periods, therefore making it possible to analyze the evolution of said results.
Below, we will enumerate a series of indicators which should not be set aside.
Many people tend to focus on the entry of assets, but tend to leave aside costs and expenses. A combined analysis may help you to determine if monetary management is ideal or not. Do not restrict yourself to the simple calculation of Income-Expenses. By using the equation (Income x 100)/Expenses you will obtain the net income percentage.
The fact of carrying out an analysis of your employees’ performance will help you to identify, easily and rapidly, possible problems and solve them in time. Besides, you will be able to control the work environment and the eligibility for each position, check who have leadership qualities, etc. One of the criteria you can use for analyzing this point is comparing the estimated time for carrying out a task and the actual time it took somebody to perform it.
The number of clients you have will help you foresee the growth of your company, and the number of clients is as important as their quality. By “quality” we mean the level of loyalty the clients have towards the company, indicating the number of clients you will win and their potential as users and consumers. If you divide the number of contacts (leads) obtained by the number of clients you will get the conversion rate of clients.
This item can be applied both to companies which sell products and to companies which provide services. The fact of tracking the production process (the development of a project when speaking about service companies) will give you a clear panorama of the things to be improved and, hence, it will help to you improve performance.
Cost per client
It’s very important that you are clear about what it takes for you to win each client, since this will enable you to check if current strategies are viable or improvable in some aspect. Customer acquisition cost is referred to as CAC. For you to be able to calculate this you must add every cost related to your marketing and sales departments and then divide this number by the number of clients you have.
It’s important to point out that each company or organization will have individual factors linked to its category or interests to be measured and analyzed. If you take advantage of the most recent data you will be able to discover new opportunities and this will help you to measure the results of your efforts.
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