Yep! Entrepreneur Bootcamp | What to track and measure in your business for it to succeed
People go into business because they want to make a success of it. A good question to ask is What a success look like. If you're anything like me, success is when your product or service solves a problem.
Success is when people buy from you, success is when you have a good team around you. And ultimately, all of that translates into more sales, more profitability, and more cashflow.
So what are the things that you have to measure as an entrepreneur, to make sure that you achieve those objectives and you are making progress? I'm going to share steps that you can look at that you have to measure religiously.
The first area has to do with people. So firstly, you want to measure the happiness factor of the people working in your team. You can only do that when you speak to them regularly. If you've got happy staff, then they will go to war with you. The second area that you need to measure also related to people are your clients. People only buy from you if you can solve their problems. But more than that, you want to make sure that they've got an excellent wonderful client experience.
People don't often complain. So you want happy customers all the time. You want them to return and buy from you as often as they can. The third area that you want to measure is with your strategic partner. You can have staff, you can have clients, but you also need strategic partners, maybe a key supplier, measure what those people are doing, compare yourself to them and see how you measure up.
The fourth area of measurement is in the area of growth. Every business needs to have a sales funnel. The things you want to check for is how many new leads are you able to generate? How often over what period? What does it cost you to generate every single lead, you want to measure how long it takes you to convert those leads into sales. You want to measure at what point in your sales funnel do you ever high drop off rate of leads, you want to measure your conversion rate your conversion rate is the number of clients you sign up from the number of leads that you generate. So growth is an important area of measurement.
The next area of measurement is profitability. You can have all the sales in the world but if you cannot deliver those sales at a profit, your business is as good as dead. The next thing that you want to measure is your cash. There are two things under the cash flow. First one is your burn rate. And the second one is your cash runway. your burn rate is simply a measure of how quickly you burn through your available cash. While your runway tells you how long you can burn the cash until it completely runs out. So it'll be in your best interest to make sure you have a firm handle on your cash burn rate and your cash runway.