List of Information Relevant to Assessing the Performance of a Business

Hi all. Found an excellent article that I am sure many will relate to. Hope you get something useful out of this...

Just because you’re making money doesn’t mean your business is running as efficiently as it could be. Analyzing how and where you are making money and the performance of your various departments will help you determine if you can decrease your expenses, increase your sales or otherwise improve your operations to maximize profits.

Sales

One of the most obvious pieces of information relevant to assessing the performance of your business is a sales report. In addition to gross sales, it’s important to analyze your sales by product, profit margin, distribution channel, geographic area and salesperson. Analyzing each of these will help you better evaluate which sales efforts are working for you. For example, you might find that your online selling has the highest cost-of-sales and return rates and that you might be better off eliminating Internet sales and focusing on brick-and-mortar outlets.

Profit Margins

Knowing your profit margins will help you assess which products you should focus on for maximum sales. For example, you might determine that your high-profit items account for only a small percentage of your sales and that you might be better served dropping them and focusing on greater low-volume sales. Conversely, you might find that it’s better to focus on lower gross sales of high-margin items.

Looks like really useful info, eh? Just click here! If you’d like to share perspectives or discuss how it relates to your business, call me on (0429) 011-071 or email me at [email protected].

To your success,

Ian