Numbers might not be your passion, but if you’re running a business, you need to know them—and learn to love them. The more intimately you understand the numbers driving your business, the easier it becomes to identify areas for improvement and growth.
For example, you should track things like:
- Revenue – Daily, weekly, and monthly income
- Profit Margins – The difference between revenue and expenses, both overall and per product/service
- Customer Acquisition Cost (CAC) – How much it costs to gain a new customer
- Customer Lifetime Value (CLV) – The total revenue expected from a single customer over their lifetime
- Customer Retention Rate – The percentage of customers who return after their first purchase
- Operating Expenses – The ongoing costs for running your business (rent, utilities, salaries, etc.)
- Return on Investment (ROI) – The profitability of your investments in marketing, equipment, etc.
- Break-Even Point – The sales amount required to cover all costs every day, week, or month
- Cost of Goods Sold (COGS) – The direct costs attributable to the production of goods sold by your business
- Net Promoter Score (NPS) – A gauge of customer loyalty and likelihood to recommend your business
- Churn Rate – The percentage of customers who stop doing business with you over a period
- Lead Conversion Rate – The percentage of leads that turn into paying customers
- Average Transaction Value – The average amount spent by customers per transaction
- Employee Productivity – Output per employee, which could be sales, units produced, or tasks completed
- Number of Deliveries – How many orders you fulfill
- Customer Satisfaction Scores – Ratings or feedback from your customers on their experience
- Time to Deliver a Product – Speed from order to delivery
- Inventory Turnover – How often your inventory is sold and replaced over a period
- Debt-to-Equity Ratio – A measure of your company’s financial leverage
- Gross Margin Return on Investment (GMROI) – Profitability of inventory investments
- Number of Employees – Your workforce size
- Employee Turnover Rate – The rate at which employees leave your company and need to be replaced
- Number of Hours Worked – Total hours your team puts in
- Website Traffic – The number of visitors to your website and how they interact with it
- Social Media Engagement – Likes, shares, comments, and overall interaction with your social media content
Not everything has to be fancy or complex, but nearly everything can be tracked. The more you know about these numbers, the better positioned you’ll be to make informed decisions, optimize operations, and ultimately build a stronger, more successful business.
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