SOUTHBURY, CT--(Marketwire - March 24, 2010) - According to The Entrepreneur's Source (TES), to be effective in small business today you have to understand your numbers. Your numbers, TES business coaches say, will tell you where the gaps are in your business and what you need to monitor to get back on track.
"We are talking about establishing key performance indicators or KPIs," said Brian Miller, COO and President of The Entrepreneur's Source. "KPIs are typically developed to complement a company's main business goals and are components of the company that have the greatest impact on success or performance.
"For example, a restaurant might determine that customer satisfaction is a KPI. A sign company might measure their success by repeat customers or referrals. If a company has a goal of being the best employer in their industry, then employee retention is something they will be measuring," said Miller.
Any business can be viewed, measured and monitored by identifying and measuring the KPIs of the business. KPIs in a business, no matter what size, specifically measure how well a company is performing. Depending on the business model, KPIs will vary from company to company.
"KPIs are obviously important to a business because they're a reflection on how well they are succeeding with particular business goals," said Miller. "Like a physician, you can monitor the overall health of your business by tracking a few very important, yet insightful vital signs."
Although businesses can have company-wide KPIs, such as customer satisfaction, they refer to the company as a whole. Another approach is to create KPIs for individual departments in order to better monitor progress and effect change. Sales managers typically track KPIs that pertain to lead flow and conversion of prospects into customers.
TES franchise business coaches specialize in areas such as finding a new business, financial management, leadership and communications. They also offer guidance to franchisees on sales management, market and business planning, exiting a business, increasing profitability and expanding operations, all with the ultimate goal of helping business owners achieve tangible, long-lasting success.
To learn more about The Entrepreneur's Source, please visit www.entrepreneurssource.com.