- October 2, 2018
- Posted by: Paul Foster
- Categories: Analysis of Leading Business Performance Indicators, Business activities management
Let’s imagine for a moment watching a professional football game… could you possibly conceive the coach leading his team by only looking at the scoreboard?
Of course not, that’s ridiculous.
During the game, a successful coach monitors every activity on the field. Dozens of people are involved in recording all aspects of the game and keeping stats of every kind. After the game, everyone watches and learns from the game tapes and stats.
Successful coaches learn from the game and develop a new plan of action – and business owners need to do the same.
What Successful Business Owners Do:
Successful startups and existing businesses measure and monitor all aspects of their business’s activities, and review and improve upon the information on a regular basis.
Business owners who use only their income statement as their gauge of success might as well be the coach directing his team by looking only at the scoreboard. There is so much more to know.
What Business Activities Should be Analyzed?
The activities that make the business money of course!
Depending on the business, these activities could be:
- Customer inquiries
- Customer complaints or issues
- The habits of the best salesperson
- Product knowledge and/or placement
- Quotes or estimates that resulted in sales
- The effectiveness of advertising campaigns
- Leads that converted in sales via phone calls, website hits, or customers that have walked into the physical business
Each one of the above examples can be broken down and explored further to determine areas for profit improvement.
Start monitoring your business’s activities today. Start with one thing. It’s as easy as:
- Gather your team
- Explain the plan of action
- Record the activities (a pencil and paper will do!)
- Regularly review the stats
- Share the results
- Adjust towards improvement (involve your team!)
Just like the coach who leads the team by noting, observing and making changes, your profits will improve by doing the same.
Click here to learn more about business gauges for profit improvement. Get started today and let us know how you do!