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3 Business Metrics You Should Measure Weekly

There are myriad business metrics that can tell you important things about your business and how it's doing. That can be confusing and time-consuming. Fortunately, there are only a handful that you need to measure weekly.

Business metrics provide you with key information about your company's performance. Identifying the right business metrics to track, and successfully following and acting upon those metrics, is essential to the health and wealth of your company.

Determining the frequency for measuring metrics is critical. While some can be measured more sporadically, there are three that your company should measure every single week, without fail.

Sales performance: The first line you should look at is sales performance. Specifically, look at sales performance for quality sales (non-discount or low margin), credit-worthy customers, and pipeline sustainability. Additionally, look at sales performance “period over period.” The periods you should compare will differ depending upon your goals and objectives. Determine what is right for you.

Cash: Cash is king. Look at how your cash is generated, how it is consumed, and whether you have enough. It is important to make sure that your managers know how to follow the dollar when it comes into your company.

Return on invested capital: ROIC is a great measure for understanding how well you use the money you have to make more money.

By measuring these items, you can stay on top of the trends in your business and foster its growth. In the end, investing a little bit of time watching sales, cash, and ROIC will bring in big returns.

7 comments on “3 Business Metrics You Should Measure Weekly

  1. Hailey Lynne McKeefry
    September 27, 2013

    @Frank, thanks for this. Of your three, which is the most often neglected? And for our busy folks, are there metrics you would advise ignoring (or at least occassionally neglecting) in favor of these three?

  2. Frank Cavallaro
    September 27, 2013

    Thanks. If I were to track only one, it would be your cash cycle. From This metric flows all of your essential financial flows.

  3. Hailey Lynne McKeefry
    September 27, 2013

    Follow the money! That makes total sense. Thanks.

  4. syedzunair
    September 28, 2013

    Frank: 

    I would go with you on this one. Cash cycle is the thing to look out for. Everything else just stems from it. If you can monitor the cash flow you can monitor the entire operations. 

  5. ahdand
    September 29, 2013

    @Syed: Indeed, monitoring the cash flow is the important plus the difficult part. But also we should remember that just monitoring will not do the job for you, you should make efforts to control the cash flow so you can gain more benefit towards your business. 

  6. syedzunair
    September 30, 2013

    Agreed. Only monitoring the cash flows wouldn't help. There must be some active work going on to ensure that costs are minimized. 

  7. Taimoor Zubar
    September 30, 2013

    I think the only true metrics for any business is the net cash inflows or outflows they have. It's easy to fake profits and ROI and give a fake rosy picture, but it's difficult to create cash in the system.

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