3 Important Performance Metrics to Consider in 2021

Strong business leaders recognize that there is always room for improvement. However, it is often difficult to identify our pain points. Therefore, it is crucial that we reflect on our performance in order to determine what changes must occur. Here are 3 important performance metrics to consider in 2021:   

Sales revenue

Sales revenue is the total income generated by goods or services. Sales revenue is one of the best ways to measure quarterly performance or the success of a campaign. The numbers don’t lie! When reflecting on sales revenue, ask yourself these questions:

• What were our highest and lowest performing months for sales revenue?
• What factors could have influenced an increase/decrease in revenue (i.e. ineffective advertising)?
• What can we learn from our highest and lowest performing months? What adjustments can we make based on these findings?  

Productivity

Productivity is the ratio of output to input. Measuring productivity is a great way to determine how you can improve operations. The goal is to produce and distribute large quantities of high-quality products as quickly as possible. When reflecting on productivity figures, ask yourself these questions:

• What were our highest and lowest performing months for productivity?
• What factors could have influenced an increase/decrease in output?
• What can we learn from our highest and lowest performing months? What adjustments can we make based on these findings? 

Loss

In business, loss is an unanticipated decrease in assets or resources (i.e. damaged product). Loss is sometimes inevitable, but may be prevented if proactive measures are taken. When reflecting on loss, ask yourself these questions:

• What were our losses?
• What were the reasons for these losses?
• Could these losses have been prevented? If so, how? What adjustments can we make based on these findings?

At Floro Business Strategies, we recognize the importance of using performance metrics to support ongoing growth. If you wish to sustain operations in 2021 and increase revenue, you must consistently analyze your sales revenue, productivity, and losses and make adjustments when necessary. Not sure how to get started? Our professionals are ready to assist! Schedule a no-obligation consultation today.

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