Growing your business – Step 1 – Know your areas of improvement

Growing your business – Step 1 – Know your areas of improvement

By focusing on a few key strategic focus points, one business worked out that they could potentially turn their profits from $15,000 to $100,000 in one year. 

This sometimes seems too good to be true…..this does not happen overnight, but if you don’t focus on the important focus points for your business, it might never happen….that is a certainty!

Any business can identify their key performance indicators (KPIs), set a new benchmark for their focus areas and start implementing ways to achieve these, and dramatically turn their business performance around.

Examples of key performance indicators may include:  average sale, gross margin %, number of sales, time taken to answer the phone, time taken to response to a client enquiry, number of times rework had to be undertaken…

As you can see these focus areas include financial and non financial points of interest.  I remember hearing about a CEO of an airline company who solely focused on one key point of interest:  how many planes departed behind schedule in any one day, every time a plane departed late he was informed by his staff and then he queried what had happened for this to occur and fixed those issues.  By focusing, recording, watching and implementing strategies to improve this very important KPI, this airline company went from almost complete collapse to one of the most successful airline companies in all of Europe!

So what KPIs are you going to focus on this week (and every week) for your business and how are you going to test and measure these KPI?

Author:  Tracey McGuinness CPA

 

About the Author

Specialising in Property Investing, Wealth Creation, New Company & SMSF startups, Tax

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