Five Metrics To Find More Leverage And Grow Your Small Business

<h1>Five Metrics To Find More Leverage And Grow Your Small Business</h1>Author: <a title="Stacey Barr" href="http://www.articlesbase.com/authors/stacey-barr/37633.htm">Stacey Barr</a> If you're not happy with the income your business is making, don't rush out and jump on the latest income generating bandwagon. Take stock and see where you can leverage untapped potential already there within your business. METRIC 1: Revenue by Product Leverage an existing product or service by taking it to new markets. Grow your revenue for specific products or services, or how much that product or service adds to your bottom line over its lifetime. How can you identify specific niche markets that don't know about your product or service yet, and would love to have it? METRIC 2: Customer Lifetime Value Leverage your existing customer base by helping your customers move to the next stage. Increase your overall profit by growing your customer lifetime value, or how much each customer spends with you over their lifetime as your customer. How can you identify where your customers are right now, and which of your products or services is ideal for them right now? METRIC 3: Product ROTI Leverage your time by focusing on higher value activities. Increase your return on time invested (ROTI), or the revenue or profit you generate for each hour you invest in your business. How can you identify which tasks are the most profitable for your business, and what to do with the tasks that are not? METRIC 4: Average Revenue Per Sale Leverage your relationships by collaborating on higher value products and services. Increase your average revenue per sale, or the value of the products and services you offer through other's contributions. How can you identify join ventures and partners to collaborate with to raise the value of (and revenue from) the products and services you offer? METRIC 5: Profit Margin Leverage your existing sales by streamlining and reducing the cost of sales. Decrease the cost of producing your products or delivering your services, without decreasing their value to your customers. How can you identify potential cost savings in the creation and delivery of your products and services? TAKE ACTION: What asset in your business aren't you leveraging enough? Is it your products and services, your existing customers, your time, your relationships, your existing sales, or something else? Start measuring this, and focus on improving the measure by exploring ways to leverage.About the Author: Stacey Barr is a specialist in performance measurement, helping micro and small business owners to move their business results from where they are, to where they want them to be, using powerful, transformational measures. To grab your free copy of Stacey’s Special Report “7 Clues to Measure What Matters In Micro & Small Business”, visit <a href="href"><a href="http://www.staceybarr.com/smallbusiness" target="_blank">www.staceybarr.com/smallbusiness</a></a>. Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/management-articles/five-metrics-to-find-more-leverage-and-grow-your-small-business-1415085.html" title="Five Metrics To Find More Leverage And Grow Your Small Business">Five Metrics To Find More Leverage And Grow Your Small Business</a>

If you're not happy with the income your business is making, don't rush out and jump on the latest income generating bandwagon. Take stock and see where you can leverage untapped potential already there within your business.

METRIC 1: Revenue by Product

Leverage an existing product or service by taking it to new markets. Grow your revenue for specific products or services, or how much that product or service adds to your bottom line over its lifetime.

How can you identify specific niche markets that don't know about your product or service yet, and would love to have it?

METRIC 2: Customer Lifetime Value

Leverage your existing customer base by helping your customers move to the next stage. Increase your overall profit by growing your customer lifetime value, or how much each customer spends with you over their lifetime as your customer.

How can you identify where your customers are right now, and which of your products or services is ideal for them right now?

METRIC 3: Product ROTI

Leverage your time by focusing on higher value activities. Increase your return on time invested (ROTI), or the revenue or profit you generate for each hour you invest in your business.

How can you identify which tasks are the most profitable for your business, and what to do with the tasks that are not?

METRIC 4: Average Revenue Per Sale

Leverage your relationships by collaborating on higher value products and services. Increase your average revenue per sale, or the value of the products and services you offer through other's contributions.

How can you identify join ventures and partners to collaborate with to raise the value of (and revenue from) the products and services you offer?

METRIC 5: Profit Margin

Leverage your existing sales by streamlining and reducing the cost of sales. Decrease the cost of producing your products or delivering your services, without decreasing their value to your customers.

How can you identify potential cost savings in the creation and delivery of your products and services?

TAKE ACTION:
What asset in your business aren't you leveraging enough? Is it your products and services, your existing customers, your time, your relationships, your existing sales, or something else? Start measuring this, and focus on improving the measure by exploring ways to leverage.

Stacey Barr is a specialist in performance measurement, helping micro and small business owners to move their business results from where they are, to where they want them to be, using powerful, transformational measures. To grab your free copy of Stacey’s Special Report “7 Clues to Measure What Matters In Micro & Small Business”, visit www.staceybarr.com/smallbusiness.

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Article Tags: performance measure, metric, kpi, key performance indicator, business goals, balanced scorecard

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