Each time a new month kicks off, I try to block an afternoon of my time to write my invoices and create performance reports for my customers. Not only do I really enjoy the math to this, as well as getting back in touch with my customers, I also love calculating my own company’s performance report.
To do so, I use so called “key performance indicators” (KPIs) and calculate what my total revenue was, as well as my total costs and how many new vs. returning customers I had. This way, I can track how my business performed in one month and easily compare it with the performance from previous months. Another benefit is that I can calculate how profitable I was and what I need to do better next month (e.g. increase revenue, cut costs, etc.)!
Hope this gave you a little insight into what you can do to measure your company’s performance. If you have any questions, don’t hesitate to leave a comment below!
Life Of An Entrepreneur 101 