You do not need to wait for your monthly accounts to review your business progress.
Set some weekly key performance indicators (KPI’s) to measure progress more frequently.
This will keep you in control of the key performance aspects of your business.
So what KPI’s should you establish?
Revenue/customer – surely you keep count of your customer or transaction numbers – daily/weekly. Simply divide that number into your weekly revenue. The more customers and the more they spend is the sales backbone of your business.
Weekly customer contacts – record the number of booking calls and website leads received weekly. How many convert into jobs booked? Measure the conversion rate as a percentage of total calls. This is an excellent way of verifying how effective your marketing is working, and the ability of your call takers.
Wages % to sales – for most businesses wages are the biggest cost category. The lower the cost as a percentage of sales the better. This is a simple measure which goes to the heart of productivity.
Operation time/schedule – if your business revolves around daily operational deadlines, you can monitor actual performance against your desired schedule. This will give you an on-time percentage. This again is a critical productivity measure.
The usefulness of this information depends entirely on how you use it. Get your team or managers to buy into the process. Set them KPI targets for the parts of the business they control. Motivate them to meet and exceed targets. Reward them for achievements gained.
The key with this frequent information is it gives you a snapshot weekly of the key aspects of the business. You are now in control. By the time you receive your monthly accounts there should be fewer surprises.
If you need help establishing your KPI’s contact Chris on 0800 100059 or firstname.lastname@example.org