Monitoring and measuring your business allows you to think and behave like a big business.
In my last blog, I explained actions to give small businesses the capacity to become big businesses. The final one being to monitor and measure activity, it’s the only way you’ll know what’s working.
Know where you’re headed
The first step to measuring your activity is to have goals to measure against. Set targets and put a plan in place to meet those goals. How many sales do you need to make a month to hit your revenue target? What revenue do you need to break-even?
How the big boys do it
Large organisations with senior management operate by monitoring and measuring data fed to them by lower levels or electronic sales systems. With this information, it’s possible to track activity without the need for multiple site visits. Progress or problems can be identified and actions taken to ensure profitable growth.
Monitor and measure for growth
As a small business, you should be doing the same. The scale may be different but the principle the same. If this crucial monthly view is missed, how will you ever meet your goals?
On a monthly basis, look at your finances, sales, order book and delivery schedule. How do the numbers compare to your budget? Just like a big business, this information will give you the ability to take action when needed to ensure profitable growth.
What about sole traders?
Find other sole traders and hold monthly meetings where you can hold each other accountable. Or take on a business coach who can have that monthly meeting with you. It’ll be worth its weight in gold.
If you’d like some help to implement any of this, why not contact me to arrange a Free Business Review? This is a genuine free 2 hour session whereby I’ll come into the business and spend two hours giving you advice to make positive changes in your business. Click here to arrange yours.
Have a great month!