“You cannot master what you do not measure”
In this episode, Rob is warning you to ensure you are measuring all the key metrics in your personal finances and in your business. There are certain metrics that are essential in growing both your personal and business finance and if you are not tracking these well, it could lead to failure.
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KEY TAKEAWAYS
- You need a yearly set of management accounts, which are your abbreviated or estimated profit and loss of your business. You can start with a generic set and then tailor it to fit.
- To measure your assets and liabilities you need a balance sheet – it is essential to track.
- You need to know how much revenue each of your employee generates, you need 1-2 times return on an admin staff member but someone who works in sales should be generating at least 5 times more than their salary.
- Staff turnover can create major changes in your revenue and cash flow. Track your staff tenure rate, if it is below the average for your sector then you need to look at why this is.
- If you measure your refund rate you then know if it needs to be lower. A lower refund rate means a leaner and more profitable business.
- A NPS score is essentially a satisfaction score- either for your customers or your staff. It is a scale of 0-10 and is based on a survey you ask customers and/or employees to fill out.
BEST MOMENTS
“If you are not seeing a full set of management accounts…you do not know what is going on in your business”
“You need to know the revenue generated per staff member in your company”
“The average tenure for staff members is only 2 years”
[Business, mindset, entrepreneur, disruptors]
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ABOUT THE HOST
Rob Moore is an author of 9 business books, 5 UK bestsellers, holds 3 world records for public speaking, entrepreneur, property investor, and property educator. Author of the global bestseller “Life Leverage” Host of UK’s No.1 business podcast “Disruptors”
“If you don't risk anything, you risk everything”
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