Often, small business owners can be so preoccupied with the day-to-day requirements of running a business that key metrics are often forgotten.
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However, measuring key metrics is one of the best ways to evaluate your business growth, discover what is working (and what isn’t) and develop it further.
Below we have listed the key metrics to measure that will be critical to your business’ success.
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Perform A WordPress Audit
Make sure your website is secure 24/7 by performing a security audit, checking your website for any signs of security breaches.
You should perform a security audit at least every three months so that you are made aware of any suspicious activity, unusual drops in performance, or malicious code.
If you aren’t sure how to get started though, we recommend learning how to perform a WordPress security audit so that you can stay ahead of any potential security breaches now and in the future.
Measure Net Profit
Net profit is basically your business revenue minus the expenses. If you are a small business just starting out, measuring your net profit is a great place to start as it tracks your company’s profitability over the years. Put simply, keeping an eye on your net profit will help you see whether your business is earning more than it is spending or vice versa.
Many business owners calculate their net profit on a weekly or monthly basis so they know how much to withdraw at any time. Net profit is an important metric to measure and can help you make smarter financial choices that help future-proof your business.
Manage Cash Flow
Cash flow is the amount of money that comes into your business, subtracted by the amount of money that goes out from your business over a given period.
While you may have earnt a couple of thousand one month, the money might not appear in your account until the following month. Therefore, understanding the timing of these payments will affect the state of your cash flow and, ultimately, the success of your business.
Failure to effectively manage cashflow is one of the most common reasons why small businesses fail. So, keeping an eye on your cash flow is a good habit to get into!
Track Your Conversion Rate
When you run a website, you want to know that your visitors are converting. Measuring the conversion rate is, therefore, a great way to find out how many visitors to your website become customers and boost your sales.
The method you use to measure your conversion rates will depend on your business. If, for example, you run an online store, you might want to focus on the number of people who made a purchase. Whereas, for businesses selling online courses, you should measure sign-up or download numbers to get an accurate conversion rate.
Tracking your conversion rate will show whether the marketing strategy you have invested in is improving your conversions and increasing your sales. And, even if your conversion rate is low, don’t worry! You can read some of Adlibweb’s best conversion-boosting tips here.
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Monitor Website Traffic
If you run a small online business, it’s essential to measure how much traffic your website receives. Measuring website traffic is one of the best ways to see which aspects of your business are working well and which are not, helping you develop more effective marketing strategies for the long-term.
Programmes like Google Analytics are a great way to keep track of your traffic trends over time, showing spikes and dips so that you can better understand how your website is serving your customers.
Social Media Engagement
Being active on social media is a great way to increase your brand visibility and generate more business. But how do you know if people are actually engaging with the things you’re posting?
Measuring stats such as likes, comments, and shares will help make you aware of which social posts your audience engages with the most. Monitoring these trends lets you concentrate on creating content that is driving traffic to your website and increasing conversions.
If you’re not tracking your social media engagement, you could be putting out a lot of content but getting very little in return. Therefore, taking the time to track these metrics could help you work smarter rather than harder.
Measure Your Return On Investment
Measuring your return on investment (ROI) is one of the most important metrics you need when running a business. Whether your business is based completely online or not, your ROI will help predict whether you will still be in business in the future.
Many small businesses tend to fail from the get-go because they simply aren’t profitable enough. As such, knowing and understanding your return on investment can help increase your profit and decrease your losses, letting you stay in business for longer.
Conclusion
Measuring your business performance metrics is one of the most crucial aspects of running a successful company. Without keeping track of your key metrics, you won’t know what’s working and what isn’t.
So, by taking the time to review your metrics on a regular basis, you will gain the knowledge required to make well-informed decisions that ensure the future success of your business.