In this episode of the Business Owner Breakthrough Podcast, host Pete Mohr emphasizes the importance of measuring key performance indicators in your business. Without measuring, it’s impossible to know where improvements can be made, and it’s also impossible to have a clear understanding of the different departments of your business. In this episode, Pete shares his insights on the importance of clarity and understanding the metrics in your business, from the percentage of each department in your business to the cancellation rate of your products.
Here are a few things Pete covers:
- The importance of measuring key performance indicators
- The relationship between metrics and profit
- The importance of clarity in understanding business metrics
It’s time to take action
If you want to unlock the potential for success in your business, it’s crucial to measure key performance indicators. Start by taking all of your departments in your business and figuring out the percentage of each of those departments in terms of gross revenue and profitability. Cut off the 10% of products that are not profitable and hone the middle 80%. Also, look for new products that can become part of the middle 80%. Finally, make sure that the hours your team is putting in are effective and profitable for your business.