Knowing performance indicators can help your business - bizjournals:

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Answer: It’s important to know the key performanceindicatorxs (KPI) of your business. You can start with your monthlhy income statement andbalancs sheet. What are the trends of your KPIs? How do the current month’sz KPIs compare with the monthluycurrent year-to-date numbers and with the same periodx last year? Do the trends show growth, decline or stagnation? How do you compare with similar-sized companiese in your industry? • Debt to equityu ratio.
KPIs are not always financial statement measures that are predictive of results but mighr be predictors of the future profitability of your You must answerthe question: If my business is going to what would be the first indication? You must learn to anticipate instead of react. • New customers. It’xs important to know exactly how youmake money, so identift your priorities, review budgets, righ t size your business and cut non-essential costs. Doing so will help you fine tune the familiar andredefine processes. Remove all cash outlays that do notgeneratr revenue. Accountability comes from the soassess employees.
Reduce all non-employee expensexs by 10 percent to 20 percentif possible. Use incentivex to motivate, encourage behavior and retain New equipment and other capitak outlays must be You might need to considerf postponing newcapital investments. Go for revenud opportunities, save cash Listen to your existing and potential customers for opportunitiese to bring inmore revenue. Seek out the best adviser and be flexible and readyto change. Explore all revenue opportunities, especially non-expensive marketing activities such as blogginygand podcasting. Refresh the look and functiohn of yourWeb site, if Be proactive by investinv in training your sales force.
Cash is Manage your transactions for greater liquidity by positioning the company to operate from a positionhof strength. You can expect highert taxes, slower accounts receivable payments and tighteningcredit now, so reduc e inventories and collect receivables as aggressively as possible. Communicates with your banker regularly so you know what is working and Now is the time to establish second relationships with other banks. The future is unpredictable. Being preparexd is the best way to get Useassessment tools, benchmark goals and set timeds for achievements (deadlines).
Challenge your current thinking, maintaib a great attitude andtake Remember, the things that brought you success in the past are not necessarilyg going to carry you forward.