Today I am going to discuss why you should Measure What Matters in your small business.This discussion expands on a post from earlier where I talked about measuring conversions in the sales and marketing processes in your business. You can check that out here.
While measuring your conversions in the sales and marketing processes of your business in necessary, and something that many business already are doing, it falls short of what you need to be measuring in your business.
In some cases, you should be measuring everything that can be measured, but for most small businesses, that is way too much data to manage and use, so I suggest that you instead figure out what data matters most in your business and measure that.
And the things that can’t be measured, if they matter to the success of your business, you should figure out a way to restructure them so that they are measurable, because anything in your business that isn’t being measured, can’t be managed with any degree of competence.
And you definitely don’t want to allow incompetence into any aspect of your business, do you?
What are you currently measuring in your business? I’ll be it isn’t everything that you could and should be.
Measure What Matters
Good, bad or otherwise, unless you are measuring it, you have no idea what is really going on. Measuring what is actually going on is the only way to get a complete picture of your small business.
You may have a gut feeling, or an instinct about a particular area of your business, but unless you are actually measuring what is really going on, then you are just guessing and don’t have a true picture of reality.
If you are growing sales, are you also growing your revenue?
I bet a lot of you would say yes off the top of your head, but you forgot to factor in collections and non-payments. If you aren’t measuring those aspects of your business, then you have no idea if an increase in sales actually means an increase in revenue.
What you measure is going to grow and expand (or shrink if that is the desired outcome), because you are putting attention on it.
If you are focusing on something enough to measure it, then that measurement alone is going to have a positive impact on your business. And if you aren’t measuring something, then the likelihood of it growing and improving is virtually nil, because you don’t care enough about it to measure it and track it and see what is going on. And the likelihood of it becoming ugly and biting you in the rear is exponentially increased.
Do you know how all the various aspects and steps in all the processes are impacting your business?
Do you know if they are good and you should be doing more?
Or if they are giving you a warning sign that something is wrong and you need to make some minor (or major) changes in your business?
What do you think? Do you agree that you need to measure what matters in your business?
If there is anything specific that you haven’t been measuring, but are going to start, I’d love to hear about it int he comments below, and don’t forget to Like this post for your friends to benefit as well.
Have A Prosperous Day!