Join me as i share with you 7 strategic key points you can use to know the financial position of your business
1. You can know the financial position of your business by comparing the present year sales to the last couple of years. If there is substantial positive margin between the present year and past years, then your business is growing. However, if the difference is minimal or stagnant, then your business is heading to the cleaners.
2. The second strategic key point is to calculate the percentage of repeated sales you get from your customers. This is important because if it is high, that means you are building brand loyalty and it is good for your business. But if it is too low, then you need to work on your relationship with your existing customers. The approximated cost of finding a new customer to keeping an existing one can be as high as five to one in terms of dollars spent. Keeping customers is more cost efficient than constantly searching for new ones.
3. The next key point is; how often do you offer your existing customers new products or services? Your loyal customers would like to see innovation and progress in the way you serve them. If you don’t know how to be innovative or creative, then talk to your customers, carry out a poll or conduct a survey.
4. How effective has your marketing campaign been? How much money do you budget for marketing and advertising yearly? What has been the response rate of your advertorials and how has it affected your sales? Answering these questions can help you access the financial status of your business.
5. The fifth key to analyze the financial position of your business is to compare the rate of your business to that of your competitor’s. Every business, no matter the size and industry has competition. If you have been able to attract a substantial amount of customers from your competitor, then your business is in good health. But if your competitor has pulled most of your customers, then you are bound for liquidation.
6. The next thing to analyze is the resignation rate of good staffs from sensitive positions. If it is high, then your have to review your staff policy and their working environment. Is your employees happy working in your company? If no, then the reason is left for you to find out.
7. The seventh and the last key point that can help you know the financial position of your business is the goal conversion rate of you the entrepreneur. What i mean here is; how many goals did you set for your business in the past years and how many did you accomplished? I will not be surprise to hear you don’t set goals. Now tell me, if you don’t set goals, what will be your source of motivation? How will you know your business is progressing? The truth is No Goals, No Growth. PERIOD.
I know with these few strategic key points, you can now access the financial position of your business to know if it is growing or not. Till i come your way again, GOOD LUCK
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Tags: advertorials, building brand loyalty, competitor, existing customers, fifth key, financial position, key point, loyal customers, marketing campaign, response rate