Increasing Revenue and Profit
There are ‘Lead Measures’ and there are ‘Lag Measures’. The vast majority of businesses, (and accountants), focus on Lag Measures, for example sales, margin, overheads, profit and in general, these are only reported and reviewed a long time after they have happened.
Lead Measures are different, these are the key performance indicators that move before the lag measures do. Knowing what your lead measure and Key Performance Indicators are allows you to focus your management attention on the things that matter, the results then take care of themselves.
There are a handful of universal lead measures and trends that can be extracted, analysed and reported on for every business, these include things like your rate of Customer Acquisition, or your Rate of Customer Attrition along with key information related to Average Purchase Frequency and Purchase Value.
Clearly there are more, but as a starter for 10, these are some of the key Lead Indicators you should understand, record and report on to drive your business forward. If you need help, Burgis and Bullock Enhanced Management Reporting and part-time FD service can help you achieve your goals.