- June 1, 2019
- Posted by: Jessie Caudry
- Category: Marketing
When it comes to knowing how your business is tracking, it is essential to know the numbers and data to see how you are performing, year-on-year and in relation to your industry.
Typical performance measures such as annual turnover relative to previous years are vital as these will provide a good overview of where your business sits. Revenue, net profit margin and gross profit are essential indicators.
However, it’s also important to look outside the square at a range of metrics that can measure more than just profit and loss.
Firstly, it’s a good idea to consider your customer base. What’s your customer satisfaction rating like and how much repeat business are you generating? Simple ways to find out more about this could be a customer survey or asking new customers if they were referred to your business by existing customers.
Secondly, you should also consider how engaged and satisfied employees are. Staff turnover costs time, money and productivity. Monitor rates of turnover year-on-year to pick up patterns, conduct regular staff satisfaction surveys and perform exit interviews to help determine how your business is tracking in holding onto good employees.
Thirdly, consider how you are performing in relation to the industry. If your business is growing at 10 per cent, you may be happy with that, but what if your competitors are growing at 20 or 30 per cent? This is where industry benchmarks are important. Check out resources available from organisations like IbisWorld to determine how your business is tracking compared to industry averages.
Finally, all franchise businesses need to consider metrics relating to their franchise network. How satisfied is the network? How many franchise leads did you have one year to the next? These factors are important to ensure that your franchise is attractive among current and prospective franchisees.