How to Measure Business Performance

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How do you measure business performance? Seems like a simple enough question, right?

Yet you may be shocked to learn how many small business owners aren’t tracking critical numbers. (Or maybe you won’t be shocked? Maybe you’re one of them?)

In this brief video I’ll present some of the best yardsticks for gauging your business performance.

Action Steps:

  1. Watch this video and ask yourself: Do I regularly review numbers to track my business performance? Here are the three most critical numbers to get a firm grasp on your bottom line:
    • Count the cash on hand
    • Figure your monthly net profit
    • Calculate your salary
  2. Determine what two other Most Valuable Indicators (MVIs) you want to track to measure your business performance.
  3. On this page, please share the two MVIs you created. Also, feel free to ask any questions on this page.

Principles:

  1. Most Valuable Indicators, or MVIs, are the five numbers small businesses should track on at least a monthly basis.
  2. Cash on hand is the lifeblood of your company. Cash really is king.
  3. Net profit numbers are most useful when compared to the prior year’s performance.
  4. Your business should pay you well. You are the Most Valuable Employee you have.
Ready to add another “0” to your paycheck? Dave’s new book The Result offers you a simple formula for getting the most out of your career where it counts the most: your pocketbook. For a practical, proven formula for getting what you want, download, click here.
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