Why Measuring Business Growth is Important
Another important habit to acquire is keeping up-to-date on your company’s metrics.
For example, my background is in the chiropractic field. There are many metrics for chiropractors, but the three most commonly tracked are new patients, patient visits and collections. So, a practice could increase in patient visits and collections, but remain steady in new patient acquisitions — allowing for slow growth.
Now, if you only see the bottom line of slowly increasing collections, you will think your practice is going good. However, if you notice a steady decrease in new patients, you should probably kick your marketing efforts into high gear.
There are dozens of metrics that your small business can start tracking today.
For instance, if you own a medical practice you’d want to have a strong grasp on metrics such as: front desk collections, insurance collections, total collections, patient visits, new patients, new patient by sources, missed, cancelled, re-activations, staff productivity, etc. The possibilities are endless, and no two business or practices track the same key performance indicators.
In general, every small business should pay close attention to customer loyalty and retention, customer acquisition cost, sales revenue, gross margin, productivity, overhead costs, variable costs, inventory and monthly profit and loss.
Ultimately, every small business should have access to important business metrics to better understand processes and identify target areas for improvement.
Dr. James R Fedich is a NJ-based chiropractor and the Founder and CEO of iBiz Stats, a business tracking and graphing app that lets entrepreneurs manage their businesses on the go, from anywhere in the world. iBiz Stats app allows users to enter an unlimited number of user defined statistics, track, graph, print reports, and share with others across the globe. iBiz Stats is currently available on iTunes.