How Do I Know My Marketing & Business is Working?
Every entrepreneur should be able to speak the ‘language of money’!
The first step to understanding your business numbers is keeping track of data.
We’ve listed below what you should keep track off. If you have a system, to record this. It can help you boost your business later on down the road. You can use something as simple as MS Excel or a CRM which will make it easier. See the free HubSpot CRM here
By looking at these number. You’ll exactly what’s costing what. What adverts are bringing the most money in. What you can tweak to multiply your income. And stop any money from leaking out.
- Leads – the number of leads you generate
- Number of sales
- Conversion rate – the formula is: (number of sales/number of leads) x 100
Example: I have 10 leads and converted 2 sales from them.
(2 divide by 10 = .2) x 100 = 20%.
20% is my conversion rate from leads to sales
- Average price customers pay you
- Break-even point – how much profit you need to make to make sure all bills and wages are paid
- Average Gross profit – what is the average profit you make across all your sales
- Monthly recurring revenue – do you have monthly revenue like subscriptions?
Later on you’ll need to track the following
- Churn rate – how any of your customer leave you?
- Customer lifetime value – how much on average does each customer spend with you over a year
Many new and existing business owners ignore these numbers. But this is a fatal mistake to any business. You’re in business to make money. And money is all about numbers. You must take your time daily to understand your numbers. It will only take a matter of minutes. If you don’t track them, you can struggle in the future because you won’t understand what’s working and what you need to fix.