As a small business owner, what performance indicators are you using to make sure your business is moving in the right direction? Have you even taken the time to assess what are the best indicators to track and measure the performance of your business? Performance indicators are critical to successfully running and growing a small business, but most small businesses don’t select the ones that are the best.
The fact of the matter is that revenue and profit growth are the most common performance indicators. Measuring just these indicators are commonplace in any small business. However, using other performance indicators can and will enable you to react more quickly to changes in the market or the performance of your business.
For example, are your winning percentages going up or down? Are your transactions getting bigger or smaller? Does it take longer to close business? Are you winning more deals in a year than the year before? Measuring and tracking performance indicators like these will allow you to pinpoint potential problems. For example, if your win rates are going down, why? Maybe you just lost a great sales rep, or maybe you have a new competitor.
Identifying, prioritizing and selecting the best performance indicators will allow you to proactively make changes to improve performance rather than reacting to poor performance after the fact. With data analytics becoming readily available to small businesses today, tracking performance indicators have become very simple. If you want to sustain revenue and profit growth, you better be tracking the best performance indicators.