Make more and work less by tracking the metrics that move the needle in your business
This week I thought a workshop on tracking your metrics and I wanted to share the simple steps, and a free template, to help you dig into what numbers move the needle in your business, create realistic goals, projects, and processes around them, and how to create accountability to monitor them consistently. Here’s how I see it - being an entrepreneur is like flying a plane (you've heard me say this before, right?). You are the captain of the plane. The numbers in your business set your trajectory and having the goals, processes, and routines in place will tell you if you are on track or off track to fly to your destination. You will not reach your destination unless you know the numbers that will get you there and you are able to course correct when they are not on-track. ✈️
Here is the process I recommend:
1. Decide what the main thing in your business is right now. For example, my main thing this year is getting in front of 100 entrepreneurs this year while working less than 25 hours a week.
2. Determine the top 3-6 numbers that move the needle. Some example numbers are: Profit, Opt Ins, Lead Calls, Revenue, Expenses, Churn Rate, Hours Worked, etc. See a full list of metrics on the second tab of this template - make sure you chose metrics that are in alignment with the main goals in your business. Choose less than 6 that are relevant RIGHT NOW.
3. Define a process to get each number. For example, does your book keeper report the revenue and expenses? Do you look into Convertkit to see how many new email subscribers you have? Do you look at PayPal for your revenue? How do you find your web traffic? Write out the process either in the Data Dashboard, or where you keep processes.
4. Determine how often you want to track each number + how you will keep track of them. Keep the tracking consistent -weekly, monthly, quarterly. I like to create a simple Data Dashboard where I can see all my numbers in one place and mark them in red if they’re off track. Feel free to use this template for Data Dashboard.
5. Determine who will report each number. Is it your book keeper, community manager, store manager, yourself? Add that to the Data Dashboard and process.
6. Determine the previous numbers for the previous week, month, or quarters # and add them to the data dashboard. This will help you see the previous data and create data driven decisions.
7. Create a realistic goal for each the main numbers you're focusing right now by creating a percentage increase from the current number. This will help you create data driven goals and know if your current number is on-track or off track. Do you want to increase revenue by 10%? Add 10% more newsletter subscribers a week? Just remember the time period you set for yourself and break the goal into that time period.
8. Create GOAL based projects. Start by chose the most important number on your list and create one project that will bring you closer to your # goal. That will help you stay focused on the projects that will move the needle. Don't forget to determine who does what, by when, and how.
9. Commit to monitoring the numbers every week, month, or quarter + build in external accountability by meeting with your team, VA, or bookkeeper. Then put it in play right now: Put a recurring meeting on the calendar right now, send an email to the book keeper, or send a message to your team. - Do sometime to put that rhythm in motion.
💡 Why this is important: Knowing the main metrics that move the needle, creating attainable goals based on past data, ensuring our projects are in alignment with those goals, and consistently monitoring those numbers are the things that will help you make a profit without spinning your wheels or getting distracted or discouraged.
Try it out and let me know how it goes.
Here's to you getting Time Rich, Summer
👉 PS. Want to get crystal clear about what systems in your business are holding you back? Take this quick Systems Audit for a no BS look at your systems.