What are the key measures (scores) that tell you how well your business is doing?
Some examples of measures that you can use to tell the picture of your business:-
How much money is coming in by month, buy sale versus the costs of sales. Are you making a profit after costs? That needs to include on-going running costs.
Are you as efficient as you can be? What systems do you use?
What do your customers say about you? How often do you deliver on time, to cost, what the customer wants?
There is a danger that you could end up measuring the measures, so keep thing simple.
As with a car, you look at the dashboard to tell you the key measures; speed, amount of fuel, warning lights, miles driven, and in some cars, there is a trip computer telling you how the car is performing and how many miles left to drive for the fuel you have.
It depends how much information you feel you need to run our business effectively. I know one person who has an app on his smart phone that shows green or red. He only intervenes when the app glows red, otherwise he just goes on with his day.
One client has a dashboard on his PC screen which shows daily progress against targets and when a sale is made, the value is added to the overall sales total and the net profit (bottom line) is updated to show how much money they are making. On the factory workshop, just next door, there is a screen that shows weekly progress and updates the bonus the guys will get that month. All this works in real time.
What measures will you put in place? Or will you just wait and see when your year-end accounts come in from the accountant? That’s assuming the accountant has put your accounts together as you wanted and directed…
This is one of the most fundamental ways a business coach can help your business thrive; helping you to test and measure the right aspects of your business and how to make the necessary changes.
If you want to find out more about testing and measuring your business, contact me on 07766 080770 or email email@example.com