First of all. an entrepreneur ne.s to learn how to correctly set not only a goal (increase profit). but also describe the process of steps by which this goal will be achiev.. In other words. it is important to learn how to break down any task into the tools on which its implementation depends.
In this case. let’s figure out which indicators will change and not only increase profits. but also the development of the business as a whole.
How to fix this?
- Net profit is the difference between revenues and expenses.
- Sales per sq.m. is the monthly vietnam telegram data sales volume divid. by the area occupi. by your business.
- The number of clients in your database is one of the most valuable assets of your business.
- Average number of clients coming to you daily – the number of clients coming to you monthly. divid. by the number of days in the month.
- Average number of purchases per day is the number of purchases per month (or other period) divid. by the number of days in the same period.
- Average check is sales in money divid. by the number of checks.
- Margin is the profitability of sales of your goods or services as a percentage of turnover.
- How many customer acquisition methods do you use – take into account each method you use to attract customers to your business.
- The cost of attracting a client using each of the methods us. is the money you spent on one method or the 22 best mailchimp alternatives for your business another. divid. by the number of clients who came to your business through this method.
Here I want to make an important clarification. The fact that you will already be tracking these indicators will help you increase the efficiency of your business. But the best way to use these indicators to increase profits will be to track their changes over time.
Sales volume is the sales of your products or services.
Creating Excel spreadsheets will be very helpful in this. By entering data there. you will be able to track their european leads changes bas. on the graph. This way. you will be able to react to changes in each of them quite quickly. As soon as you see that over time the value of any indicator tends to go down. you should imm.iately sound the alarm to interrupt this trend.
Expenses are everything you ne to make sales.
It is important to constantly maintain a trend line showing the change in any of these indicators. at a level of even small. but growth. Of course. with the exception of expense items. Remember. any of the expense items can be increas. only in one case – when it contributes to an increase in profit.
Of course. these are not all the indicators you should track
You can easily add your own to this list. For example. you can track the performance of each of your employees. Especially if their work is directly relat. to increasing sales.
The first is monthly. broken down by days. The downside of this approach is that each month has a different number of days and the weekends fall out differently each time.
The second is weekly. also broken down by days. 7 days in a week and there are always 2 days off in a week.
You can use them separately or together. It’s up to you.
Start tracking changes in each of these indicators today and this will imm.iately affect the increase in your profits.
