Most of the entrepreneurs are only concerned about the end-results. They will be more than happy as long as the bottom-line is doing fine.From the surface, this tactic does not look all too bad.However, it could potentially bring a company to its knees, regardless of how giant the organization maybe.
The reason being, you can never come to terms with underlying complex issues of your business with such an isolated approach. The company might produce satisfactory results in the short run, but you will be taken off guard in the face of a big challenge. As a result, your business empire might face an existential crisis.
It is not difficult to avoid such an awkward situation. All you have to do is to measure your business performance from time to time using the following matrices:
- Dive into the financial statements
It is the hallmark of every passionate businessman to enjoy his work. But if you are not milking enough revenue, your company will eventually come to a close.Make no mistake, capital is the ultimate spine of any type of trade.
So the burning question is how can you evaluate whether your financial standing is weakor rock-solid? Well, just looking at the documents like balance flow sheet, cash flow statement and income statement will unveil the financial health.
Make sure you have a qualified accountant who is well-versed about operating cash flow (OCF) formula because a minor mistake in the maintenance will make everything topsy-turvy.
- Lead acquisition and conversion rate
The nature of competition has come to a pass where no company can sit back and rely only on its existing pool of customers. Provided the mushrooming of small startups,you never know when your customers might change their hearts and switch to other businesses. So if you are in for a long haul, generating high-quality leads and subsequently converting them should be amongst one of your key performance indicators.
The number of leads must be in step with the number of employees working in your organization. According to digital marketing experts, the ideal number of leads for a company with 1 to 200 employees is to acquire 100 leads per month on average.Likewise, up to 500 leads are a minimum criterion for a company having 200 to 500 employees. If your brand is falling way short of this standard, it is about time to reframe your marketing strategy.
- Customer satisfaction
Take any well-reputed brand, the majority of them had their share of lean times. These are the moments when even the most dependable employees bid farewell to you. But many of your loyal customers continue to support you because they have created an emotional bonding with your products and services over the course of time.The point being, loyal customers are a valuable asset and no business can take them out of the equation while measuring its performance.
When we talk about customer loyalty, there are two things that particularly stand out. Namely, the quality of your products and customer service. If you have them covered, customer loyalty will follow on its own accord.
One of the most convenient ways to determine customer satisfaction is to conduct social media surveys. Try to engage as many people as you can in the surveys so that you can sketch a better picture.
- Employee satisfaction
There is a lot of debate going on about whether robots will completely hold sway on human labor in the future or not. Well, we can’t anticipate what might happen in the coming years.But, as things stand now, employees are absolutely critical for the success of a company.
So, for example, if your workplace is keeping up with a high turnover rate, it is not a healthy sign. Addressing this issue in a timely manner is very important or else it will turn out to be a parasite for your company.
Performance reviews are also a robust way to know what your employees have to say about the overall environment of the company, technology, wages, and suchlike factors. As a rule of thumb, you should not conduct performance reviews more than twice a year.
- Overall website traffic
A beautifully crafted website has become an inevitable component of a business.In fact, many companies kickstart their journey from online presence. Nowadays,anyone who shows the remotest of interest in your products and services will surely try to get to the bottom of your website before engaging in a transaction.
The number of visitors on your website can tell you a lot about your performance. That way, the weaknesses and strengths of marketing campaigns will also dawn upon you, which will definitely influence the overall results. Guess what, you don’t have to spend a dime for that. Free tools like Google Analytics will get the job done quite comprehensively.
The final verdict
The formula for being a successful entrepreneur is to know all the nitty-gritty that concerns your organization.If something goes down unnoticed today, it will become a pain point tomorrow. Therefore, follow the above-mentioned basics and stay on top of the performance of your business.