As a business owner, it's important to keep a close eye on key metrics and numbers to ensure that your business is running efficiently and profitably. In this video, the speaker discusses several important numbers to keep track of, starting with your margin. Margin is the amount of money left over after expenses for any given job, and it's important to ensure that you have good margins in your products, especially if you plan on growing your business beyond yourself.
Another important number to keep an eye on is your profitability. It's crucial to make sure that you're making enough money to sustain your business and any future growth, and you may need to adjust your pricing, increase sales or reduce expenses where possible to improve profitability. Wage expense is also a key metric to manage closely, as it's likely your biggest expense if you have a team.
Cash flow is another critical number to monitor, as it's the lifeblood of your business. Make sure you have enough money set aside for expenses and payroll, as a cash shortfall could be disastrous for your business. Keep track of your customer acquisition costs and the lifetime value of your customers to ensure that you're acquiring new customers at a fraction of the revenue you can expect throughout the lifetime of the relationship. Customer retention is also important, and it's essential to keep track of where your new customers are coming from.
Overall, there are plenty of other numbers you should take a look at, but these ones are essential for any business owner to monitor closely. By keeping a close eye on these metrics, you can make informed decisions to ensure the long-term success and profitability of your business.
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