How can you tell if business is running smoothly?
If you run a business’s day-to-day operations, it might feel as if the business is booming, but managers want demonstrable figures to measure their successes and confirm the business is indeed running well. Below are some tips to see how successful your business really is.
The Break-Even Point
This is the number you need to get to, monthly or quarterly, for a business to be able to cover its own costs, even if it is not making a profit. If this happens late into the quarter or month, then the business probably isn’t doing as well as it could be.
Leads Generated / Leads Converted (LG/LC)
You need to keep track of where your leads come from (snail mail, email, ads) so you can figure out where your marketing budget is best spent.
This is a big one. Your sales volume and frequency can give you tons of information on your overall success. You can break this down even further by looking at sales to new customers, sales to existing customers, which products or services are making your business the most money, or any other pertinent parameters. Keeping up with these valuable numbers can provide you with useful knowledge about your success and future strategies.