You should put together an easy to read dashboard that is updated regularly to monitor the financial health of your business. Try not to over complicate the dashboard, a simple spread sheet that is updated daily will do.
You should include baseline and goal targets in your scorecard so that you and everyone in your organization knows how you are doing.
Once you have a baseline, set goals, and start measuring you should also set aside specific time weekly, monthly, and quarterly to review your progress towards goal and to set strategic initiatives to keep you and your team on track.
Ultimately you want to make your results known to your team good or bad. The engagement of your team will drive the metrics to places you never thought possible.
Financial metrics to monitor:
- Total recurring revenue
- Gross margin %
- Revenue per service employee and employee
- Revenue per client
- Effective hourly rate
- Gross margin per client
If you monitor these metrics regularly and constantly work to drive them in the right direction the health of your business will steadily increase.
Josh
