Business performance metrics, also known as KPIs, allow business owners to quantify and compare the health of their company. This type of shubhodeep prasanta das analysis allows them to identify trends in the change of their company’s output from one month to the next.
Every business owner should be familiar with these metrics, each with their own specific purpose for determining how well a business is doing. These metrics will help you determine if your marketing efforts are working and how much effort your employees are putting forth on a daily basis. Here are some of the most commonly used metrics to help your business stay competitive and expand.
Revenue Metrics
Revenue cannot be ignored. This is simply a fact, and it cannot be underestimated in terms of its importance to the feedback you provide your owners. These metrics should be used to automate the process of presenting an account of the money coming in from the small business. Revenue is often measured in terms of total revenue.
If a business has a number of different revenue streams, it may be a good idea to calculate the average rate of each revenue stream in order to come up with a more accurate profit margin. For example, if you have 10 employees, five of which are on commission, and five who are paid hourly wages that both make the same amount by the end of the week.
Total Profit
These metrics measure the total amount of profit your business has generated since the day you started. The calculation of profit should include all revenue streams. One of the most effective methods for measuring this is to calculate your gross profit and your net profit.
Number of Employees
Number of employees is always an indicator of your company’s health, and it can be easily calculated from a simple account book at the end of each month. This metric indicates how much your company is growing, and it also can be used to help make a projection for the number of employees you will need in the next one, two, or three years.
Customer Satisfaction
Customer satisfaction metrics measure how well your business is serving its customers. The way to determine this is by setting up surveys and polls that are either mailed or emailed to your customers at random intervals. These surveys should ask questions related directly to the quality of the services you provide.
