Knowing performance indicators can help your business - San Francisco Business Times:

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Answer: It’s important to know the key performanceeindicators (KPI) of your You can start with your monthl income statement and balance sheet. What are the trends of your KPIs? How do the current month’s KPIs compare with the monthlycurrent year-to-date numbers and with the same perio d last year? Do the trends show growth, declinre or stagnation? How do you comparer with similar-sized companies in your industry? • Debt to equitty ratio.
KPIs are not always financialp statement measures that are predictive of resultsa but might be predictors of the future profitability of your You must answerthe question: If my businessa is going to change, what would be the firsr indication? You must learn to anticipate instead of react. • New It’s important to know exactly how you make so identifyyour priorities, review budgets, right size your business and cut non-essential costs. Doing so will help you fine tune the familiadr andredefine processes. Remove all cash outlayd that do notgenerate revenue. Accountabilityg comes from the soassess employees.
Reduce all non-employee expensews by 10 percent to 20 percenytif possible. Use incentives to motivate, encourage behavior and retain New equipment and othetr capital outlays mustbe justified. You might need to considerr postponing newcapital investments. Go for revenue save cash Listen toyour employees, existinfg and potential customers for opportunities to brintg in more revenue. Seek out the best advisere and be flexible and readyto change. Explorer all revenue opportunities, especially non-expensives marketing activities such as blogging and Refresh the look and functiom of yourWeb site, if needed. Be proactivw by investing in training yoursalesx force. Cash is king.
Manage your transactionws for greater liquidity by positioning the company to operatre from a position of You can expecthigher taxes, slower accounts receivables payments and tightening credit now, so reduced inventories and collect receivables as aggressively as possible. Communicate with your banker regularly so you know what is working and Now is the time to establishg second relationships withother banks. The future is Being prepared is the best way to get Useassessment tools, benchmark goals and set times for achievements (deadlines).
Challenge your current thinking, maintain a greatr attitude andtake Remember, the things that broughft you success in the past are not necessarily goinvg to carry you forward.