Increase Profits with KPI’s
Increase profits by understanding the story behind your numbers. Too many business owners rely on “beer case metrics” to know how they are doing. Does this sound familiar? You work hard all week and on Friday you collect your customers’ cheques so you can run down to the bank to make a deposit. You then run back to the office, pay your suppliers and employees, and if you have enough money left over for a case of beer you must be doing OK. In other words, you don’t measure anything and the only way to know if you are doing OK is by watching the bank account.
It is crucial that you have timely information on how your business is doing so that you can take immediate corrective action to improve profits before losses mount. How do you do this? The answer is to measure business performance with Key Productivity Indicators (KPIs). By measuring your business’s productivity performance from the front lines of your business, you will have a much better understanding of what is driving the numbers on your financial statements. In this episode, Tony Malyk explains what a KPI system is by comparing it to how the gauges on the dashboard in your vehicle lets your know how your vehicle is operating so you can take corrective action before causing damage. He then gives advice on how to set up a KPI system and what to measure. Knowledge is power, so empower yourself with information so you can increase profits.