Being able to monitor and track the performance of any business is essential to ensuring that it is being run cost-effectively and efficiently, especially when you have launched a new start-up business. Business owners, company managers, and investors alike oftentimes use certain business metrics to measure every aspect of a company’s operations. Knowing what to measure is also important for gauging how you stack up against the competition. The 3 primary business metrics include:
- Financial metrics – cash flow and profit are the two most important measures of a company’s financial performance. Your cash flow statement helps you to measure your cash position while your profit and loss statement measures how much you have gained or lost over a specific period of time.
- Google Analytics for measuring online performance – provides you with specific information about your website’s performance such as the amount of hits received, where those hits originated from, whether individuals accessed your site from their desktop or mobile device, and a number of other statistics.
- Marketing metrics – granted, the number of leads that your marketing campaign generates is an important factor. However, increased revenues resulting from new customer sales is just as essential to gauging how successful that campaign is.
Some additional business metrics that are also helpful for measuring certain aspects of your company’s performance include compliance, internal, and strategic metrics.
For instance, management can measure how compliant their company is with employment regulations, environmental rules, and financial reporting. Additionally, internal metrics help to measure the atmosphere within a company. Finally, strategic metrics helps to determine if a company is moving towards its long-term goals and will realistically reach its targeted projections. As you can readily see, these different metrics cover a wide range of business operations and express how well a company is progressing towards its goals in each area.