There is a saying that “All Big Things Come in Small Packages”. This is definitely true! Even for a starting entrepreneur, this mindset is a way to drive your ambitions to reality.
Did you know that McDonald's started from a small hamburger restaurant?
KFC from a roadside restaurant during Sanders's depression?
How about a small-time online bookstore, but now known as AMAZON? There’s a lot of inspiring stories out there that you would want to check out.
These fellows followed the universal indicators.
The materialization of ideas has different factors that will affect your business, we call these KPIs or your Key Performance Indicator. These KPIs, if managed correctly, will make your company effective in reaching its key objectives. The time it will take is never bounded and more opportunity awaits if the indicators will be considered.
ROI : The very common ROI (return of investment). This metric calculates the gains over your losses which are derived from the investment.
Revenue : These are the income. This money is generated through sales and measures start-up performance.
Net Income : This is the difference between your revenue and expense, or your actual business profit after expenses and allowable deductions are taken out.
A Expenses/loss is always a part of the business. How you will handle it depends on your goals.
Burn rate : Burn rate is the amount of money being burnt for financial operations.
Churn rate : The amount of money being burnt due to canceled customer purchases is the churn rate.
Knowing your customers is the best indicator for your business. These includes:
Customer Acquisition Cost : The money spent on acquiring customers.
Lifetime value : This is revenue that a customer can generate for you as to their product subscription and membership.
Retention : This indicates the paying customers you retained considering the satisfaction you provided to your customers. They have the chance to renew their membership subscription.
Cash : Finally the flow of cash measures the costs versus revenue. Positive cash flow means there are more earnings than exhaustions.
These indicators keep your objectives at the forefront of decision making. In order for an entrepreneur to reach his goal, he has to acknowledge and be responsible for his own KPI’s.