An old management adage is that you can’t manage what you don’t measure. The underlying meaning of that saying is that when you measure, you are better positioned to determine if your initiatives are working or if they are not. If you’re off target, then you can make adjustments to your plan.
Measure how well your small business is doing through metrics. Metrics are a set of measurements that quantify results. They are like gauges on your car’s dashboard. At any given moment, you can determine how much gas you have in the tank, if you have enough oil, and your rate of speed. Metrics are used to determine how well you are performing to the benchmarks. In this example, a benchmark might be the speed limit so you can determine if you need to speed up or slow down.
When using metrics, remember to:
Measure results that are important to the success of your annual goals. While each business is different in what they measure, for many entrepreneurs, the Prospect-to-Client Conversion Rate is a common metric to see if your sales process is working. As you implement your marketing strategies, you can use that metric as a gauge to see what is working and what is not.
Keep it simple. If you set up too many metrics and spend more time tracking rather than bringing in revenue, it’s time to rethink your most important measurements or the way you’re tracking.
Communicate your metrics throughout your company. When your team knows the standards, they are more apt to be motivated to be a part of the solution to meet those standards. Post your results by hanging your charts on the wall. Use line charts or other graphs to easily, quickly and visually communicate your progress.
Use metrics to guide your decisions. With your metrics in place, you can better assess which strategies are working, adjustments that need to be made, or training that needs to be implemented. When you make changes, use the metrics to tell you whether or not the changes moved you closer to your goals.
Celebrate your achievements when the metrics show improvement. Remember, it’s not all about the numbers. Reward and thank the people who were responsible for the success. Whether it is a referral partner, your Mastermind partner, or your team, send a personalized thank you note specifically outlining the improvement and their role in that improvement. If you’re a solopreneur, then treat yourself for meeting your metrics.
When you measure what’s most important, monitor the metrics, publish your metrics, and reward those involved, you will start creating massive momentum for your small business. You will also be able to check your assumptions and make more effective decisions putting you back in the driver’s seat.
To get started on the road to small business success, take these action steps today:
1. Outline the specific metrics that will act as gauges for your business
2. Review the metrics on a weekly, monthly and quarterly basis.
3. Make adjustments as necessary.
If you’re struggling with developing metrics for your small business, you’ll want to get your hands on my Business BlueprintTM process which is explained in my Entrepreneurial Edge System Self-Study Program. When you have a Business BlueprintTM, you magnificently map out how to get from where you are today, to where you want to be while bringing amazing clarity and focus to your business. It realistically operationalizes all of your activities in one spot. It’s something I’ve used for years and is an integral tool for my clients helping them create systems and massive momentum in their business. Learn more at www.getmoreclientsnowvideos.com