What information are you looking at regularly that helps you keep your finger on the pulse of your company? It’s a powerful question. If you want to grow your company, and become more profitable, you want to set goals and get feedback so your clear about where you’re headed, and where you are on the path.
Have a revenue, gross profit margin (your rate of return on work) and net profit goal. Most people have a revenue goal, but rarely have a margin or net profit goal. If you want to increase your bottom line, get clear on your targeted revenue, gross profit margin and net profit goals. Each month review your profit and loss statement and see how your doing. Look at the month, quarter and year to date to see trends.
Set a goal for dollar amount bid, and targeted close rate. It’s easy to just respond to the bids that come in the door and think that’s all there is. But it’s not. When you get intentional and set bidding and close rate goals, you’ll increase the odds of meeting your revenue goals. Try this simple formula – take your revenue goal, divide by your targeted close rate %, the result is how much you need to bid in dollars. Too high? Increase your close rate. Every other week track your results and see if you’re on track or if you need to make a course correction in either the amount your bidding, or your close rate.
Setting goals and tracking even just these few key performance indicators in your business will give you greater clarity and confidence to know what actions to take to help you grow your bottom line.
Make it an extraordinary day!
In 1990, I started my business as a ‘stop gap’ measure. If I had a list of things to do, being an entrepreneur was not on it.
Months earlier, I was pregnant and happily working 60-hour weeks as the controller for a national training company. Then, in January 1990, my son Taylor was born and everything changed. After holding him in my arms that first day, I couldn’t imagine not being home with him as much as possible. So, while it wasn’t what I had planned, I gave notice and left my job. I told myself I could always go back when I was ready. (more…)
Human beings fundamentally desire to have the work we do matter and make a difference. As I’ve been posting these past few weeks about employees and building “winning teams” I was particularly struck today by the post below from Seth Godin. There is a nice correlation here… Have what you do be about serving your customers, and create a “win-win” for both your company AND employees! (more…)
In our rush to be competitive, we may be doing ourselves and our companies a disservice. Are you underbidding your jobs hoping to make it up in volume? If so, this could bankrupt your company! Consider a couple of these basics based on my Beyond Break Even article.