12 Oct 3 Metrics That Every Business Owner Must Focus On For Success
As a business owner, you probably face many challenges running your operations.
It can often be daunting to determine where to focus your attention.
And many things are tempting to focus on, which also gives you the illusion of working very hard on the business.
In this blog post, I will share three metrics you must focus on to drive success in your business.
Cash Flow Management
In my coaching and consulting work with businesses, the first thing I try to understand is their cash situation. Cash flow is the lifeblood of any business, and it’s essential to track it to know how well your company is doing financially.
A business fails the moment it runs out of cash.
Cash flow measures the amount of cash your business has available to pay its bills. And it’s a key measure of how well you manage your financial resources.
Cash-flow metrics should be calculated to give daily and future (weekly and monthly) views of the cash situation in the business.
This approach will help identify problems before they become serious issues that threaten your company’s survival.
It’s important always to know your cash situation and to have a strategy for building cash reserves.
Click below to download my free Cash Flow Management Made Easy Guide.
Just like cash, without customers, there is no business.
Hence customer satisfaction is one of the most critical metrics for any business, and it’s crucial to monitor.
It will tell you what your customers want, how they feel about their experience with your company, and whether they are satisfied enough to return in the future.
Often this is relegated to the customer service department.
However, it should be driven by the business leader whilst the customer service handles the administrative part of it.
Measuring customer satisfaction is essential because it can help you identify areas where improvements are needed to succeed as a business owner.
You need metrics that will allow you to determine whether or not your current efforts are working well for customers or if it’s time for something new.
As a business leader, you should regularly engage with your customers and have internal sessions where you discuss customer satisfaction.
The third leg of the trio is people engagement.
Achieving customer satisfaction and effective cash flow management will be difficult without an engaged team.
As the business leader, you must ensure that your system brings in the right talent and invests in their development.
It’s your responsibility to ensure effective communication and alignment across your organization.
Even though you should have a unit for managing your people, you should have ownership of ensuring that your people are fully engaged.
You must drive a culture that promotes ownership, accountability, performance, professional and personal growth and transparent communication.
In conclusion, get a grip on these three areas before tackling anything else in your business.
Ensure that you have enough cash to run and grow your business, and ensure that you deliver for your customers and your employees.