whether you’re a self-employed professional or an employee you should track your productivity. Tracking your productivity will allow you to improve and ask for more. Many employees believe that working for a certain company for a set amount of time justifies a raise. But if you want to earn more you should also produce more. The KPI is your friend when negotiating your salary. If you are self-employed you have to rely on your KPI just to keep your sanity. As someone who is self-employed, you know that your income stream is not constant. Knowing that you put in the required work will help you through the hard days when cash is not flowing in.
What are KPI’s
The term itself is very vague, it doesn’t really mean anything you decide what you want to track. I track things I can control. In sales, for example, you can’t control how many people buy. You can’t control how many credit cards go through, or how many people even pick up the phone. What you do control is how many phone calls you make. SO that’s my KPI.
Are your KPI’s the only thing you need to track?
Your KPI’s only allow you to track movement, meaning a number of calls, time on the phone etc. Now that you have that information you need to understand how it translates into sales. To do that you take the number of sales you made and divide them by the number of calls. Let’s assume you sold 10 products and made 1,000 calls (just to make the calculations easier) that mean that every 100 calls end up in a sale.
Your ratio of sales will most likely not be that bad, most times you will make a sale every 30 calls or so. My point is that if you know what you need to do to reach your goals you work harder.
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