Identify the Key Drivers In Your Business To Scale to 100kOct 21, 2020
All business owners have goals they want to reach and plans to pursue higher levels of success, but there are times in the life of any business where growth plateaus and revenue seems to be at a standstill.
This is because often, we are not strategic enough in how we evaluate and grow our business.
So how do you get your game face on and plan a winning strategy? Through key performance indicators! Here's how you can use them to break through limitations and scale your business to 100k.
Many of my client’s businesses level out at revenues of 3k or 10k a month, and they are unsure of how to move forward. This confusion arises from a lack of strategy as to where they spend their time and effort in their enterprise, which stems from not tracking the business properly.
If you want to scale, you gotta track where your growth is happening and also understand what’s not going well in your business. Once you get a clear picture of this, you can understand where to focus your efforts to better effect.
Key performance indicators or KPIs are where it’s at!
These are the essential drivers for our business and crucial to understanding the blueprint to success. To succeed and scale, we need to define what the critical KPIs are for us and track them every single week. This will allow us to see what is and isn’t working, get rid of any fruitless efforts, and refine our tactics.
We gotta start by mapping our growth from the visitors to our website, understanding who is on our social media, quantifying how much money we are making every week, and getting clarity on what our goals are.
If you want to get to 100k, you have to map it out!
KPIs And How They Drive Your Business
Key performance indicators are critical to the growth and sustainability of your business. Businesses use these metrics to analyze their performance and their progress toward objectives.
To figure out your KPIs, you need to understand the goals of your organization and how you will achieve them. Then you can determine the processes that will best measure your progress.
Keep in mind that KPIs drive the trajectory of your business so you can reach the goals you have set. Choose ones that are directly linked to the outcomes you are trying to achieve and that analyze your operations so you can understand where your business is working and where the problems are.
There are many different types of KPIs useful for determining your business’s performance, ranging from quantitative and qualitative to process and output. Whatever you end up choosing, make sure they make sense for your business model, are easy to track, and goal-oriented.
Have You Established Goals In Your Business: KPI Measure Examples
When setting KPIs for your business, they must be SMART (specific, measurable, attainable, relevant and time-bound) and aligned with your industry and goals. Do some research and get a feel for important KPIs across sectors. Things like financial, customer, process, and people metrics. Then study industry-specific KPIs that correlate with your mission.
Some crucial KPIs include:
- Financial values like profit, cost, cost of goods sold, and sales by region.
- Customer values like the number of customers, customer satisfaction & retention, customer churn rate, and the number of new vs repeat site visits.
- Process values like percentage of product defects and LOB efficiency.
- People values like employee satisfaction and employee turnover rate.
For entrepreneurs, the most essential KPIs are sales and revenue, customer retention and growth, and social media impact. Sales and revenue are potent clues about the well-being of your business. Customer measurements give you insight into how your clients experience your brand and why you are gaining or losing customers.
Social media is a major KPI you have to understand as an entrepreneur. You gotta measure your channels for client engagement, traffic, and how they drive sales. Understanding how many people are following you and which platforms drive the most business to you will help you consistently gain clients and grow your network.
Why You Should Establish Your Own KPI And Not Copy and Paste
Every business is a one-of-a-kind operation with its own specific processes and goals. The KPIs you choose should be unique to your industry and the targets of your enterprise.
To find the ideal KPIs for your business, begin by analyzing your plan, clarifying your objectives, and then researching common KPIs for your industry. This is using value-based decision making instead of just choosing alternatives. Then the KPIs are based on what matters to your business instead of on standardized lists which could lead to inefficient measurements.
Choose impactful KPIs related to your strategy, including key financial values such as profit and revenue; and customer and social media metrics like the number of visitors and repeat visitors to your site.
To select KPIs for your business, use these steps:
- Examine your plan and establish your strategic objectives.
- Specify what success looks like for your endeavor: increasing followers, increasing sales, reducing product returns.
- Determine how you will measure your progress towards success and how often.
- Start by recording simple and SMART KPIs for your business and begin tracking them regularly. You can use dashboard software if you want to track and view your KPIs in one place.
Once you have your most significant KPIs determined you can generate a five-year plan for each one and then break that down into year by year targets to make tracking them easier.
Use KPIs To Blaze Your Way To The Top
You now know how KPIs are crucial to our entrepreneurial success and the ability to scale our businesses to 100k. Now that we’ve examined what these indicators are and how to choose the right ones, we have a chance to reach the next level of growth with our business.
It’s time to move from being a side hustler to the CEO of your business. And whether you decide to stay at your 9-5 or leave it, you want your business to be heart-centered AND profitable.
To make it profitable, you need to get serious and be strategic!
So, ladies, you can continue to run your business the way you are now, but if you truly want to grow and make it sustainable, you need to understand the key drivers in your industry. Identify where your growth is, and be strong and courageous enough to make the tough decisions to get rid of what's not working, and say no to opportunities that are not going to lead you towards your goal!
Together our community will construct the systems and strategy to build a successful enterprise and shift you into a CEO mindset. Please feel free to share your entrepreneurial concerns with me or arrange for a direct call. We are all on this journey together!
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