How to verify your business: 14 things you need to control

according to statistics,Business lives for three years, Small businesses rarely lives longer than three years. Only three of the 100 work longer, the rest are closed. The main reason - unprofitable. To know that you have everything in order to keep abreast of: business control and monitor key indicators.

This article looks at just about it: what to look for the meaning of the numbers and how to figure out whether the business right.

Money

Business - it is money, or rather how much it brings. Therefore, it is important to keep an eye on profitability. The difficulty is that financial performance is very much: ROI, ROA, ROE, P & L, EBITDA. Consider everything difficult, and it is not necessary, especially if you have a small business. But a number of indicators to be monitored.

1. EBITDA

EBITDA shows whether your business is able to earn and how much money without taxes, payments on the loan and the investment costs (equipment, maintenance, training of staff). As if these expenses were not.

If a positive EBITDA - business works. Even if you have debt or cash gaps, business still makes money, but the problems can be sorted out. If the figure is zero or less left in the company losing money and need to take action.

It should follow the dynamics of EBITDA and strive to improve the value: to reduce costs, increase revenue and profit margin, to attract more customers.

2. opportunity costs

They show how well you do with money: stay in the black, or left in a minus.

Rate is good because it gives an idea of ​​the profitability of the business. On the one hand, it seems that 1 million - that's cool. In fact, it turns out that it was possible to earn more.

3. The average check, the conversion, the number of units in check

These data show sales picture at any retail outlet. Want to business successfully existed and developed? Learn how it works. Increasing performance, can significantly increase business profits. Perhaps there are a few areas of growth, but you do not notice them, because they do not follow the analytics.

For example, the number of units in the check - how many products the average customer buys one. If this parameter is equal to one, work on additional sales: trainings for employees, change the layout of the goods. Let the sunshine in a prominent place will be sunglasses in the rain - umbrellas, during a snowfall - gloves and scarves.

Watch for conversion - how many visitors have made the order, and did not go to a nearby cafe. Compare rates from month to month and analyze the results. So you'll keep abreast of, and not to rely on intuition.

If your business has groups in social networks, you can use the built-in analytics tools. For example, in "Odnoklassniki"This feature will help to evaluate the profitability of the group to receive current information about the actions of users, their preferences and involvement.

4. Seasonality and the financial cushion for a rainy day

Make sure profit varies from month to month, and save money for the periods of low sales, to pay the rent, pay wages, to make purchases. Even better, if you build up the airbag. When the reserve fund is not, you risk losing the business: it will either have to close or go into debt.

5. Costs

Expenses are divided into operating and investment. Investment - the equipment, the form for employees, repair. Operating - rent, purchase, team salary. Operating expenses is important to know and plan, or will go into minus and will occupy.

It is important to understand that the money is in the business not yours. Can not be taken from the account of 100 thousand rubles for a new smartphone. It is better to save the money for future expenses.

Try to optimize costs: Use energy-saving light bulbs and install motion sensors lights on, to buy cheaper products, look for more profitable options for logistics, not to inflate the state, save in the communication.

Advertising

6. ROI campaign

Many entrepreneurs invest money in advertising, without relying on any data. Decent amount is wasted and there is no result. To avoid this, it is necessary to monitor the ROI of advertising campaigns and placed on the relevant sites. ROI - return on investment is. It shows how much profit you will get one ruble invested.

It makes no sense to hang a huge banner, if you have a home bakery. It is better to send the budget for targeted advertising and display ads target audience.

Such a possibility is in "Odnoklassniki": Target by gender, age, interests and level of income and running ads.

The minimum budget for the promotion of the publication - 120 rubles. In the private office of tracking advertising post impressions, the total coverage of the advertising budget spend, number of clicks.

clients

7. A place where customers come

Keep track of where people learn about you to invest in a particular form of advertising.

8. Customer reviews on social networks

according to a studyNIELSEN: Over 60% of Russians are inclined to buy after reading consumer reviews posted online62% of people rely on reviews on the internet. Feedback form the company's reputation and may affect how you're doing. Therefore, asking loyal customers to talk about you on social networks. Do it gently, when a person has received a service and was pleased.

If you speak badly about you in social networks, business carries reputational loss. Therefore respond to customer complaints, do it quickly and adequately.

Partners and Competitors

9. Suppliers

Monitor vendor: Are they all in time and qualitatively do what product supply. Devotion is useless: the optimum is always looking for new suppliers and partnership on more favorable terms.

10. competitors

To support the business afloat, you need to keep an eye on competitors. It is important to understand how they work and do not take away you have customers. It's useful: You can learn from the experience of competitors, cool spy chips and not to repeat the mistakes that catch the eye.

There are many services that allow you to spy on competitors. For example, you can see where there is a traffic to the site (SimilarWeb), which queries advertised competitors (Spywords), monitor prices (Competera).

Staff

11. competent staff

Business depends on the people that you work. Baristas should be able to make coffee and be gentle, Sales Manager - to convince the administrator - to communicate with customers. Therefore it is important to train and supervise staff.

It's a shame when you've done everything to ensure that the customer has made the order, and he goes to a competitor because of incompetence or rudeness employee.

12. staff workload

That was not a big staff turnover, should monitor the workload of the staff. It often happens: the more qualified employees, the more it is loaded. And these things that he might delegate. As a result, the most valuable resource recycle, burn and dismissed, while others only occupied by half and improve professional skills.

13. delegation of authority

With the business all right, if established business processes: the employees know their responsibilities, everything works like clockwork and goes according to plan. Establish such a system - the main task of the entrepreneur.

If you work 60 hours a week, and you know that nothing have no time to pass on responsibilities to employees and fix the system. Working in manual mode - not the best idea. The leave is not Congress, the phone is not turned off at night and eventually earn a neurosis.

Legislation

14. Changes in laws

If your business is in Russia, it is necessary to comply with Russian laws. A lot of them, they change all the time and supplemented. But ignorance of the law is no excuse. Therefore, follow the changes and keep the law. Otherwise plucked to check, penalties or subpoena.

Business - it is difficult, but very real. It can be carried out without suffering and loss, if properly organized management. The main thing - do not let things take their course and monitor key performance indicators.