Business Owners - how are your numbers?

As a business owner, you will regularly receive an inbox of financial and management reports, so you have all of the numbers you need to run your business, don’t you?

You will probably go straight to the key business numbers, Revenue / Gross Margin / Operating Expenses / Profit / ROI / Cash Flow - the financial metrics that will determine your FY outcome.

?I am going to assume you’ve got this sorted.

?But revenues are down again, what questions are you asking and what numbers do you need?

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o?? Is it a New Business problem?

• Lead Gen channel performance, e.g. Site Traffic, referrals, emails, ads, etc etc ?
• Sales Conversion: (depending on your prospect to customer journey),

- What % of leads have been positively qualified

- What % of qualified leads have converted into customers ?

• Is the average cost of acquiring a new customer, going up? – Do you know all of the variables here?
• Pipeline: Where are the blockages in the pipeline? What % of proposals are getting through to written business and what is the real value of your outstanding proposals.
• Is this an individual or team skills and performance problem.

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OR

Is it an Account Management issue? What do you measure?

• Churn Rate: The percentage of customers who cancel or stop doing business with you.

??????? - Are the percentages going up or down?

NB. Don’t forget to check - What % of customers are contracted? I.e. how many could leave if they could and how exposed are you this FY to cancellations?

• Average Order Value: The amount calculated by dividing total revenue by the number of orders.
• Customer Satisfaction Scores (CSAT): A measure of satisfaction based on feedback or surveys.
• Net Promoter Score (NPS): A score that gauges customer loyalty as the likelihood of customers recommending your business to others – do you have a rolling programme of asking the key questions?
• Market Share: Are you the market leader, what is your % share? (If you don’t know that is also a ‘tell’) NB., Remember your marketing team want to use your competitive position in brand messaging and influencing.
• Sales (and Account Management) Team Turnover: The rate at which your team leave your company. High turnover can indicate issues with company culture, management, or job satisfaction. The % in performance management is also indicative.

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If you need answers and don’t have the numbers you need and also if you would like to know what your numbers should be, then please get in touch.

Here’s my number 07849 158808

www.kpd3.co.uk