The Answer to Staying on Track
We’ve all heard the cliché: you need to “run your business by the numbers.” Though you may intuitively see the wisdom behind the phrase, many business owners struggle to find the right numbers to measure.
The plethora of data in the business world does not help. Data accessibility and analysis is more available than ever, and more is not necessarily better.
A good place to start is to find five to fifteen measurable numbers that you can use to gauge the “pulse” of your business. Ideally, each measurable is activity-based and can be assessed weekly against a base standard. In EOS, we call this number set your “company scorecard.”
Consider, for example, a measurable called “warm leads.” This is an activity-based number that can help you determine if you’re on track to reach your sales goals. Let’s say you’ve determined that you need for 25 warm leads per week to hit your numbers. As you begin measuring your actual weekly warm leads and then look at your ongoing 13-week (or quarterly) trend, you’ll be able to see if you’re on- or off-track well before it becomes an issue.
When clients become comfortable tracking their 5-15 numbers as part of their company scorecard, the results are like magic. This instrument is analogous to having your own real-life crystal ball — you can more proactively overcome obstacles, discuss options and make the necessary changes to keep your business on track.
To summarize, first consider what measurables are relevant to running your business and then find a way to measure and evaluate weekly. You’ll never find yourself caught off guard and you’ll truly run your business “by the numbers!”
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