What key figures should you know in your business?
Running a business is much more than simply making sales. There are lots of different figures that you need to be aware of and when working with a Tewkesbury Business Advisory specialist like those from https://www.randall-payne.co.uk/services/business-advisory, they will look at these figures with you and ask you where you want to grow your business and what your ultimate goals are for the business.
If you are wondering what facts and figures you need to know about your business, here are just a few of them explained for you to have a look through.
Sales Income – this is an important metric for you to know as ultimately it gives you an idea of how popular your products and services are. As well as knowing your overall sales, it is important that you are aware of what the sales figures are for each of your products and services. This will enable you to scale up items that are popular and look at removing those that don’t make you any money.
Sales Growth – this gives you an idea of whether your business has peaks and troughs throughout the year and whether there are any seasonal trends. It also allows you to see whether your business is making progressive growth year after year.
Expenditure – knowing what is going out of your business is as important as what is coming in. If there are products that are costing you lots of money to make and the profit margin is very slim, you might want to look at switching product suppliers or removing the product completely.
Conversion rate – this gives you an indication of how many people who visit your website or make contact with your business actually then buy from you. This will give you an approx idea as to how many people you need to get your products and services in front of to be able to increase your sales.
Website traffic – in order to work out your conversion rate you will need to know how many people are visiting your website. It is also a key metric to know if you are thinking of using Google Ads or Facebook Ads as companies with higher website traffic tend to perform better with these kinds of pay-per-click adverts.
Employee wellbeing & retention – every business is only as good as its employees and so it is important that they are taken care of and feel valued. One way you can measure how successful your business is in this area is to look at what your employee retention rate is. You can also conduct employee happiness and wellbeing surveys that will give you more data on what is happening inside your business.