Are You Playing By The Numbers?

While I do know a few business owners who are absolutely religious about tracking their business’ performance, most small business owners tend to use the gut check method of monitoring the health of their business.

Numbers

I get it. Numbers aren’t fun or sexy. They aren’t interacting with the customers, creating new product offerings or coaching the employees. But, without an understanding of the numbers – those opportunities go away pretty quickly.

Think of it this way. If you were going to build a house, how would you know how much lumber to buy if you didn’t have a blueprint? Before we can craft a marketing plan or create marketing tools, you need to know what you’re trying to build.

I’m not suggesting that you spend hours every day pouring over the numbers. But, if you track just a few of the key indicators, you’ll always have your finger on the health of your business.

Do you know the answer to these questions?

  • What is your sales goal for the rest of the year?
  • How will you measure/track that goal?
  • What percentage of those sales should come from current customers?
  • From new business?
  • What is your ratio of gross sales to cost of goods sold? (What percentage of your GS is left for you to spend = Adjusted gross income or AGI)
  • What’s your monthly overhead cost?
  • What’s your monthly salary/benefits cost?
  • By client, how profitable are you?
  • By product line/service, how profitable are you?
  • How have your business sales trended over the past 3 years?

If you already know the answers to these questions – excellent. But, if you are like most business people, these are not something that just trips off your tongue. And yet you make decisions every day that really need this sort of insight.

Isn’t it time to know for sure?

Drew McLellan

Drew McLellan gets branding and marketing and he really wants you to get it too. So for the past 20+ years, he’s told stories, asked questions, and milked sacred cows. All to help clients discover their brand so they can create authentic love affairs with their customers.Considered a national branding expert, Drew is a highly sought after speaker and has given about a zillion presentations at national conferences, key note addresses, training for his peers in the profession, college students and even his daughter’s tenth grade class.Over the years, Drew has lent his expertise to clients like Nabisco, IAMS pet foods, Kraft Foods, Meredith Publishing, John Deere, Iowa Health System, Make-A-Wish, University of Central Florida, SkiDoo and a wide array of others.Today, he and his agency work primarily with BtoB clients who recognize the power of knowing and living your own story.

Blog: http://www.DrewsMarketingMinute.com
E-mail:[email protected]
Twitter:http://www.twitter.com/drewmclellan
Facebook:Drew McLellan

Latest posts by Drew McLellan (see all)