Here are the numbers we think every business must know:
How much money you need to live the rest of your life without running out of cash? When you know this you can also know the shortfall and work to turn this into a surplus.
If you are planning to sell your business you need to know what its worth and what you need to do to get the value you want.
How much is your time worth – keep in mind you value to the business will be different in different roles in your business.
Lifetime value of a customer
This is the profit a customer will bring to the business over their lifetime…remember to include the value of referrals.
How much to create a lead
This will depend on the marketing tactic you use but you can average all marketing costs against the number of leads that come in during the year.
How much to make a sale
This includes the sales time required to turn a lead into a new customer.
Return on Investment
This is what yield you get back on your investment into your business. It’s useful to compare this to other investments you may have.
This is how much extra profit you could make if your team was highly productive. The Federation of Small Business paper reported that a 20% improvement in the effectiveness of management is the same as 25% more employees. Think about this value over the next five or ten years.
Net Promoter Score
This is how happy/impress your customers are with you. By using the NPS you can compare yourself to other businesses.
If you would like help calculating any of these numbers get in touch.
Image from Flickr by More By Less.