What Drives Your Business?

by Jim Giller

MetricsHave you ever stopped to think what really drives your business?   A real problem in business is that too many people focus on the results and not the activities.

Do you spend too much time sitting around and looking at such things as sales, gross profit, net income, and by the way, how is that balance sheet looking?  In reality, these are all the results of your actions.

Wouldn’t it be so better to focus on the activities which generate positive results instead of the outcomes?  Let’s consider some examples:

Let’s say you’re a roofer.  You may have work right now but do you have a sense of how business will be in 6 months?   You need leads – right?  You also need to bid on jobs and provide estimates.   If you tracked leads, bids, and estimates on a daily or weekly basis you would have a pretty good sense where the business is headed.   In addition, if you track the source of your leads, you can focus on where to direct your energy.

How about a publisher?  You may be living off a bestseller right now.  How long will it last?  As a publisher,  a steady stream of new work is critical to your existence.  Submissions are then a key to the business.   What if you tracked submission and their source?  Right here, right now – no submissions and you are out of business.

If you’re in the Internet marketing space, the size of your list is a one of the key drivers to your business.   If your list is not growing or if it’s shrinking ,  you’ll absolutely see your income diminish over time.  Another topic, another time – but is your list growing?

At OE we’re fanatical about what drives our business.  Every person in the company has a metric which they track daily which in turn helps us understand our business is headed.  What do you do in your business?

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