Successful organizations, those ones that are far
apart from the competitors know that to continuously be at the top, performance
evaluation must be a constant part of their strategy.
It is the same for every successful entrepreneur! In
fact it is so crucial to the growth of your business that you should go to a
great length, to ascertain exactly how your business is doing!
What are those things we need to measure in
evaluating our business performance? We need to look at our core customers,
we need to know how many they are? Where are they? What is their likes? ; we
may want to look at it weekly, monthly, or quarterly, whatever the case may be,
it’s a key performance indicator. We need to look at our new customers
or those buying for the first time, how did they hear about us? Which of our
marketing efforts brought them in? How can we ensure they become core customers
who buy again and again?
We need to look at our financial performance,
are we close to the financial goal we set at the beginning of the financial
year? We should look at our cost center, the cost elements and the cost
structure, are they still within the limits? Is there any dummy in our cost
structure? Can we effectively reduce or eliminate any cost dummy? It could be
an eye opener and we may be surprised at what we could add to our bottom line
by merely doing proper analysis of our cost structure!
All these can be very daunting, and frankly, that is
why many business owners run from real analysis. Some do not know where to even
start at all, especially if the business is a bit large.
This necessitate that you keep adequate records of
every transactions and financial dealings in your business.
Truth be told, without analysis, there is no way you
can see how you are doing! There is no way you can know which of your efforts
is paying off, there is no way you can measure your performance over a period
of time.
It is a big issue! To grow a business, an
entrepreneur must take this seriously.
Good news is that you do not need to spend huge
amount of your scarce resource to get the performance done!
There are
so many relatively low price CRM tools out there that will help you solve this
just at a click of a button.
Why don’t
you determine that you are going to be on the top of your game? Decide to do
good analysis of your performance in these core areas. Let me reiterate them
here:
- Your Core Customers
- Your New Customers
- Financial Performance
- Your Cost Center
- Your Cost Structure
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