To keep a close watch over the company’s metrics or KPIs, a CEO is not bound to be a data geek. However, running a venture without holding enough information in hand is an absolute blindfold play, which is risky.
In this article at MSN, Marla Tabaka explains that being well-versed with the data pertinent to business can help you take the growth-oriented decisions and give a clear indication for time and resource management.
Shortlist the accountants with experience of helping small ventures grow or reach out to the local ‘Score’ office to gather required business data. You may seek the help of volunteer mentors too. Here is a list of vital metrics entrepreneurs need to keep a watch over:
- Cash Flow Statement: With outstanding invoices falling into the 60 to 90 days bracket, you are in peril of losing that entire income. Hence, try to remain ahead of it and never hesitate in asking your clients to make the payment on time.
- Profit & Loss: This metric summarizes the revenues, costs, and expenses incurred during a specific period. A wealth of information is disclosed here and being an entrepreneur, you need to make good use of it before taking the next steps.
- Customer Metrics: There are enough metrics related to customers including average lifetime value (ALV), customer acquisition costs, new customer growth, and customer retention or satisfaction rate. Collect data via surveys and feedback. Also, strategize to maintain positive online reviews which is one of the driving forces behind digital ventures, worth investing time and money on.
- Leads & Conversions: Keep a procedure to track the leads that have major value in strategizing business deals. The leads will help you invest in the right deal and improve the process.
- Value Employees: This is one of the most essential metrics. Employees are your real asset so focus on keeping them happy, engaged, and form a culture to nurture their loyalty.
Click on the following link to read the original article: https://www.msn.com/en-us/money/smallbusiness/essential-metrics-every-entrepreneur-needs-to-track-explained-in-plain-english/ar-BBSCIwM