What to measure to be phenomenally successful in business

Sales Articles | March 21, 2007

We all have to measure our finances, using an approved accounting system. We may hate it, but it is a requirement by law. Thus we all get an accountant to tell us what we did, how much money we made or lost, how much tax we have to pay, and then most of us sigh a collective sigh of relief, and forget about it. Large businesses use the financial figures, to create management accounts that we use on an ongoing business.

However, there is much more than just finance we need to measure. This article provides list of Key Performance Indicators (KPIs) that every small business should monitor.

Have you got a KPI List?

You should set up measurement and monitoring of the at least some of, but not limited to the following KPIs. These need to in turn be discussed and reviewed at all of the management meetings. It is vital that you put steps in place immediately to ensure that you as the owner of your business have a business that you are proud of.

Number and value of leads for the month
Sales made for the month
Value and number of new sales
Value and number of outstanding opportunities
Referrals gained
Testimonials given
No of sales calls per rep
Number of telesales calls made
Marketing expenditure for the month
Customer complaints
Standard Cash flow reports such a cash, debtors, creditors etc

Are there any standard symptoms, that one can spot, that lead to a lack of business success?

Many nearly successful companies, who have great goals and ambitions like you, however encounter many problems. Some of the key issues that they may be facing are as follows;

The sales team is converting less than 10% of opportunities into sales.
There is no process for lead qualification and many leads are falling through the cracks.
The sales team is not following defined sales processes.
There is a lack of adequate sales management.
There is no consistent process for communication between telesales and sales.
There is no measurement of Key Performance Indicators.
There is no consistent format for pricing proposals being used.
There is no process to gauge customer satisfaction levels.
There is no process to gather customer testimonials
There is no process to obtain customer referrals
It is not clear what leads are generated by the marketing spend

Do any of these seem familiar? It is vital that you put steps in place immediately to ensure that you as the owner of your business have a business that you are proud of.

Putting in place measurements is vital to business success. Many people struggle in deciding which KPIs they should install into their business. If that is the case, then maybe signing up for a free sales and marketing assessment, is what you need to do. At least then you will have given it a shot, and no one can blame you for not trying.

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ABOUT THE AUTHOR

This article was written by Peter Lawless, founder of 3R Sales and Marketing. For previous articles like this, visit 3R's Articles. Alternatively, subscribe to Success our free monthly Information Bulletin with sales and marketing articles.Do you require a business growth specialist in Ireland with particular expertise on sales, marketing and business development? We help you get more sales leads, close more sales & increase your profit.