This is one of the biggest misconceptions for new business owners. The focus of your business should be on the metric that pushes you forward. But most newbies don’t know what that is. So in this article, I would like to address that. Let’s start off with things that are still good metrics to follow, but should not necessarily be the main focus.
Shares and likes
Shares and likes show you interaction from your communities side. They’re are a good metric to test out the water and make sure you’re in the right direction. They’re still not an indication of action. Meaning, they show you if your community likes your product or service.
This is a very important metric when designing or creating the new product. It’s also good for social proof. Showing a new visitor that 1 million people already like this product, is a good way to get him on board.
Clicks and hits
Clicks and hits represent a number of people who visited your site. This metric is your total traffic. It’s important to know how many eyeballs are on your product. There are many sub-metrics that help you make sense of this one. Metrics like, bounce rate – the number of visitors who leave the site without visiting other pages.
The number of visitors that take a predetermined action. An action like buying a product, signing up for a newsletter or calling your business. This metric calculates the number of visitors your website generated and divided them by a number of visitors who took action.
This metric calculates the amount of money flowing into your business. One of the biggest mistakes new businesses make is that they treat this metric as the key indicator that their business is doing well. Gross profit does not indicate profitability.
Which brings us to the most important metric you should be following, profitability.
Profit and loss
This is the metric that will tell you how well your business is doing. It will tell you if you’re able to keep your head above water, and if not are you sinking or swimming. This metric inevitably predicts if your business survives.
It’s easy to neglect this one because it takes time for a new business to start showing a profit. And it’s easy to get caught in the trap of working for the sake of working. Remember, don’t you just aim to get more work aim to make a profit.
I hope you found this post helpful, if so like it and share it with your friends. And while you’re at it, check out my ebook ‘level up your business’ a guide to starting your own business the right way.