We recently learned our eldest pet, Mr. Bungle, has diabetes. We’re all adjusting to new routines, including blood glucose tests, insulin injections, recommended cat foods and more structured meal times. We have a total of 4 pets – a dog and 3 cats – so you can imagine the 3-ring circus we’re attempting to run. In ring 1, Mr. Bungle with a lancet, test strips, meter and allotted food. In ring 2, an inquisitive and bouncy Boxer attempting to enter ring 1. Finally in ring 3, two curious cats wondering what all the fuss is but smart enough to keep their distance!
As we’re testing and monitoring our cat’s blood glucose, keeping a logbook, and adjusting his insulin, I couldn’t help but notice the similarities with vital signs, target levels, goals, and course changes in business. Yes, I think about business a lot! As we’re concerned about our pet’s health, I’m also concerned about the health of your business. Are you monitoring the vital signs of your business?
You’re probably already keeping a close eye on revenue and expenses, so here are a few other numbers you should know:
- Number of clients
- Average revenue per client and/or project
- Average profit per client and/or project
- Revenue from fees versus sale of goods, if applicable
- Number of potential clients (those on your email or mailing list not yet your client)
- Open rate for email and/or direct mail campaigns
- Conversion rate (of those you’re marketing to, the percentage who become clients)
- Revenue generated as a result of specific marketing activities
This is by no means a comprehensive list of stats you need to know to ensure the good health of your business. It’s a place to start to help move your business forward, by testing, monitoring, keeping track and improving. If you need help working the numbers in your business, delegate what you can and work with a mentor or coach to understand what may need to be tweaked and adjusted.