Business Metrics – What Your Business Should Be Tracking
Which business metrics are right for your business and how should your business track them? The answer to those two questions can be difficult to identify, but you can answer both questions with a simple exercise by asking yourself, “what areas of my business do I want to grow?” Once you know that answer, you can define, develop, and implement the metric and tracking tool that will fit your business needs.
Not sure how to answer those questions? No problem, allow J. Allen Consulting to guide you through each step.
What metrics should your business be looking at?
Here are a few examples:
- Revenue or Sales Growth
- Fixed and Variable Costs
- Break Even Point
- Cost of Goods Sold
- Gross Profit Margin
- Unit or Volume Growth
- Customer Retention and Acquisition
- Employee Engagement
- Employee Utilization
- On-Time to Ship
- Available to Ship
- Social Media Engagement
Ultimately, every business has a desire to grow but to be able to truly identify growth opportunities, your business should be tracking several key metrics on a regular basis. I’ve outlined 12 examples above, but the number of metrics your business can utilize is endless. Use this list as your baseline and continue to ask yourself: “what areas of my business do I want to grow?” and “how does my business achieve this growth?”.
How should your business track them?
Metrics can be tracked in several different ways. Whether you set a specific Key Performance Indicator (KPI) or Key Activity Indicator (KAI), you can develop a tracking tool for each. If you want a general summary of your business, financial reports or a grouping of individual charts and graphs will work just fine. It ultimately comes down to how you, as a business, want to review your business.
Below are a few examples of tracking tools that J. Allen Consulting has created for clients. Take a look and contact us if you want to learn more about how Jake can help your business grow with proper metrics and tracking.