Know Your Numbers: Track Your Business
How do you track your business growth? Which numbers do you regularly watch?
To track your business, take a moment and think like an Olympic champion. For any athlete, those moments of competition are both their passion and their ultimate goal. A figure skater poised before the music starts, a hockey player tensed as the first whistle blows, a luge or skeleton athlete gripping their sled at the top of the run…they have all trained for years in order to reach this moment. These athletes are passionate about landing those jumps, the joys of teamwork, or the rush of flying down an icy track. Their pursuit of excellence drives them to train intelligently on their journey to the Games, including a continual awareness of their numbers.
As a part of their preparation for success, athletes track everything. Their nutrition must include enough high quality calories with the proper protein to carb ratio. In the weight room, they follow precise spreadsheets telling them what exercises to do on which days, how much weight to use, and how many sets and repetitions to complete at what percent of their maximum. Flexibility training is carefully crafted to keep them supple and prevent injury. Rest days and hours of sleep are deliberately built in so their bodies can recover and stay at optimal health levels. Their workouts may include throwing medicine balls, boxing, or cycling. While these activities apparently have nothing to do with their actual sport, they are crucial for strengthening and preparing the athletes to compete.
Track your business as if it was an up coming Olympic event.
Whether you’re in sales, marketing, corporate training, entrepreneurship, or any other type of business, you live for those moments that are the wind beneath your wings. Being in front of an audience, making a sale, connecting with people, making a difference, growing your bottom line…whatever makes your heart sing, these are the events for which you train. Achieving these successes takes preparation and commitment, and it’s important to know your numbers.
Track your business by knowing your numbers.
Tracking your business is often painful because numbers don’t lie and the truth can be hard to face. Follow the 11th commandment, “Thou shalt not jive thyself”. A vital part of constructing and monitoring your business plan is to know your numbers. Accomplishing the success you want doesn’t just happen. It takes planning, determination, and follow through.
Important numbers to track.
1. Gross profit
This is the total revenue that you generate each week, month, and year. It’s helpful to track it in time periods, so you can see when you are most productive. Also track where your revenue comes from – which silo is most effective?
2. Net profit
This amount remains after you subtract the cost of doing business: marketing materials, networking groups, gifts to clients, and any other expenses.
3. Profit margin
The difference between gross and net profit is a very important figure that is calculated as a percentage. Remember to calculate it for every revenue stream you have, so you can see which are the most profitable.
4. Growth percentage
Compare this year’s net profit to last year’s, and figure out how much it has grown.
5. Cost of client acquisition
How much do you spend on gaining new clients? Once you have them, know how much revenue each client generates.
6. New clients
Know how many new clients you’re getting every 30 days or six months. Also be aware of how many you lose.
Know your numbers to evaluate your business plan.
If you want to put new goals in place, you first have to measure the past so you can move on to the future. These numbers are the measurements you need to assess so that you can keep improving your business performance. Anytime you set new goals, examine your business model and make sure it’s built to achieve those benchmarks. Evaluate your different silos to determine which ones you’ll use less and which you’ll focus on more. And remember to always factor in the time you spend on each one, because you can never get it back. For example, if you spend an hour at a networking event that’s 30 minutes away, and you only get one lead from it, was it worth your time?
Every Olympian has a qualified coach.
What do you want to accomplish in your life? Whether you hope to get a promotion, are looking to make a career change, or want to be more effective in your personal and professional relationships, your success depends first and foremost on YOU. YOU are your business.
Often, people are unable to see their own mental roadblocks that are holding them back from achieving their goals. Working with a quality coach, you’ll identify your self-imposed limits, and create an action plan to overcome them. As a result, you’ll be more productive, more profitable, and more capable of achieving the life you desire. A qualified coach will help you establish and reach your numbers to accurately track your business.
World-class athletes are passionate about their sport, and they’re willing to sacrifice and train hard to achieve excellence. Like them, you can know your numbers and progress toward the goals that you are most passionate about. Do the activities that will set you up for success, and learn to track which ones are most effective.
“Winning isn’t a sometime thing. It’s an all the time thing. Winning is a habit. Unfortunately, so is losing.” Vince Lombardi
Get into the habit of winning. Make winning your focus and track your numbers for business success!