How Fit Is Your Business? 10 Key Indicators to Measure

Just like our physical health, the health of our businesses also requires regular assessment and monitoring. By measuring certain key performance indicators (KPIs),we can gauge the overall fitness of our businesses and identify areas for improvement.

How Fit Is Your Business?: A Complete Checkup and Prescription for Better Business Health

by Neville Goddard

4.8 out of 5

Language	:	English
File size	:	367 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	194 pages
Lending	:	Enabled

FREE

10 Key Indicators to Measure

1. Financial Health:

• Profitability (Net income/Revenue)
• Cash flow (Net income + Depreciation and amortization)
• Return on assets (Net income/Total assets)

• Gross margin (Gross profit/Revenue)
• Inventory turnover (Cost of goods sold/Average inventory)
• Employee productivity (Revenue/Number of employees)

• Customer satisfaction rating (from surveys or feedback)
• Customer retention rate (Number of repeat customers/Total number of customers)
• Net promoter score (NPS)

• Revenue growth rate (Current revenue/Previous revenue)
• Market share (Company revenue/Industry revenue)
• Number of new customers acquired

• Employee satisfaction rating (from surveys or feedback)
• Employee turnover rate (Number of employees who left/Total number of employees)
• Absenteeism rate (Number of days lost/Total number of workdays)

Why Measuring Business Fitness is Important

Assessing business fitness is crucial for several reasons:

• Identify Areas for Improvement: KPIs help pinpoint areas where your business may be underperforming, allowing you to focus on improvement strategies.
• Benchmark Against Competitors: By comparing your KPIs to industry benchmarks, you can assess your relative strength and identify areas where you need to catch up.
• Track Progress and Make Adjustments: Regular monitoring of KPIs allows you to track your progress over time and make necessary adjustments to your business strategy.
• Secure Funding and Partnerships: Investors and partners are more likely to provide funding or support to businesses that demonstrate strong performance and a clear understanding of their business health.

Regularly measuring and evaluating key performance indicators is essential for maintaining a healthy and successful business. By monitoring these indicators, you can identify areas for improvement, track progress, and make informed decisions to enhance your business performance. Remember that business fitness, like physical fitness, requires ongoing assessment and commitment to achieve and maintain optimal health.

How Fit Is Your Business?: A Complete Checkup and Prescription for Better Business Health

by Neville Goddard

4.8 out of 5

Language	:	English
File size	:	367 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	194 pages
Lending	:	Enabled

FREE