Increasing Revenue & Profit
Understanding the key trends in your client’s business before they do makes you and your team indispensable. Only by tracking ‘Inputs’ rather than ‘Outputs’ can go move from ‘Keeping Score’ to helping your clients grow.
There are ‘Lead Measures’ and there are ‘Lag Measures’.The vast majority of businesses, (and accountants), focus on Lag Measures, for example sales, margin, overheads, profit and in general, these are reported on a long time after they have happened.
Lead Measures are different, these are the key performance indicators that move before the lag measures do. By knowing what they are and focusing management attention on the things that matter, the results take care of themselves.
There are some simple lead measures and trends that can be extracted, analysed and reported on for any business, these include things like the rate of Customer Acquisition, or the Rate of Customer Attrition along with key information related to Average Purchase Frequency and Purchase Value.
Clearly there are more, but as a starter for ten, these are some of the key Lead Indicators you should consider discussing with your clients to help them understand the value your reporting and where appropriate part-time FD service can help them achieve their goals.
Or join one of the upcoming Workshops:
Finding The Hidden Opportunites Hidden in Your Clients Financial Data