Episode 17: Must Have Metrics
If you’re wondering what a metric is, it’s just a number that you’re going to use to gauge the health of your business.
For example, physicians use your vital signs (like heart rate and blood pressure) to get an overall idea of what your health looks like.
You want that same thing to show you the overall health of your business
I like to buy failing businesses. Why?
It’s an amazing return on investment IF the numbers have the potential to have an upside.
The only problem is that these businesses are priced all over the place and I’ve got to be able to look at these numbers and know where I can bring them.
I’ve also never lived near any of my businesses {unless you count this lovely one that’s headquartered straight from my kitchen table}. They were in completely different states even.
That meant my numbers were my only daily, weekly and monthly gauge for trends in my business.
Here are the 6 numbers that are truly most important to keep track of:
- Gross Revenues
- Net Revenues
- Positive Increase in Bank Account
- Number of Active Clients
- Average Client Monthly Value
- Attrition and Retention
I get into the nitty gritty of where you can find each of these numbers and how to read them to know if you’re in a good place.
Listen into Episode 017 and you’ll learn:
- What exactly is a “metric”, and how it will show you how well your business is really doing
- There are 6 most important metrics that I love to use in my own businesses
- When and how often I look at my metrics and who am I sharing them with
- What questions I ask myself once I have these numbers
- Why do I prefer to buy a struggling business versus a successful one, and how do metrics help me see the opportunities available
- What “average client monthly value” is and why is it the single most important metric I look at
- Why attrition and retention matter so much in your business
Join my Ready Aim Empire tribe to find incredible insights from other entrepreneurs and share your own takeaways!
With grit & gratitude,
Lisé Kuecker
PS- Don't forget to grab your Must Have Metrics free workbook here
