If you watch Lord Sugar in the TV show The Apprentice, you’ll know this is one of his mantras. So, if numbers are the language of business, can you speak the lingo?
Here’s the top 9 numbers you need to measuring on a weekly basis in your business:
- Number of leads: Lead generation is all about the number of enquiries that you generate for your products and services via your marketing activities.
- Conversion Ratio: Leads become new customers when they buy from you as you convert then via your sales process.
- Average Order Value is how much, on average, a customer spends with you on each transaction.
- Number of transactions is the average number of times an existing customer buys from you in a given time period, 12 months, for example. You’ll want to drive this number up by generating repeat sales.
- Revenue is a number that most business owners measure at least quarterly when VAT is due.
I've seen some of my clients achieve unprecedented business growth when they focus that measuring these nine numbers. One such client, Salter Rex in Kentish Town, used the numbers to make the key decisions in their business enabling to significantly grow revenue and profits.
Here’s what they said about working with me as their business coach. “For the last ten years we as Partners have found that we were dealing with the everyday work issues rather than concentrating on the growth and profitability of the Practice as a whole. Although we were aware of these problems we found that we could not focus on dealing with these matters in a defined or structured way so more recently looked externally for help and guidance. We came across Gil Devlin from ActionCOACH and in February 2012 we started on our journey. We have found that an external consultant has brought to us a different perspective of our business from the eyes of a customer or client. In conjunction with the various strategies and systems we have adopted and the detailed financial modelling implemented we are now able to understand our practice as a business, which we are working to development and improve, rather than just keeping it going with the everyday workload we were previously dealing with.
With the help of Gil the three Partners are now able to set personal as well as business goals and targets with clear focus on what needs to be done to achieve them. We have over the last six months created a Vision, with the involvement of all staff to ensure they are now part of this evolving ethos, which is already showing positive signs of improvement in the participation of developing the vision, for the benefit of our customers and ultimately the profitability of the Practice which will in turn benefit the staff financially as well.
We feel these continued strategies and systems will make us financially stronger going forward allowing us to consider expansion and growth which we as a Practice have not done in the last 20 years.”