10 Business Metrics Every Business Owner Should Know Template

This 10 business metrics every business owner should know template has 3 pages and is a MS Word file type listed under our business plan kit documents.

Sample of our 10 business metrics every business owner should know template:

10 BUSINESS METRICS EVERY BUSINESS OWNER SHOULD KNOW Every business should understand how well they perform by looking at various operation metrics. Business metrics can help you measure how well your business is running and if you're getting closer to your goals. You'll need to keep tabs on various business metrics if you want your company to remain successful. Here are a few of the most critical business metrics you can follow. Sales Revenue Sales revenue measures the income your business receives from the sales of goods or services. You can calculate your sales revenue in many forms, including from one-off sales, recurring transactions, or sales based on product, brand line, territory, or another regional area. Net Profit Margin The net profit margin measures the net income you earn as a percentage of your revenue. You can calculate your net profit margin by taking your monthly revenue and subtracting your sales expenses. This measurement helps you see if you're making a profit on your sales efforts, plus it can gauge possible long-term growth points. The goal is to confirm the income you bring in is substantially higher than the expenses you spend on running your business. Gross Profit Margin The gross profit margin reviews your profits versus taxes, operating expenses, and other costs for work. You can take your revenue and subtract the cost of the goods or services you sell and then divide it by the revenue again. The margin measures how well your business can handle its operating costs. Growth Rate The growth rate measures how well your business grows each year. The rate measures your current year's revenue and the prior year's revenue. Take the difference between the two and divide it by the previous year's revenue times 100 to see what your growth rate is. Cost of Acquisition The cost of acquisition measures how much you would spend to obtain a customer