Knowing performance indicators can help your business - bizjournals:

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Answer: It’s important to know the key performanceindicators (KPI) of your You can start with your monthly incomse statement and balance sheet. What are the trendx of your KPIs? How do the current month’e KPIs compare with the monthlycurrenrt year-to-date numbers and with the same periodr last year? Do the trends show decline or stagnation? How do you compare with similar-sizes companies in your industry? • Debt to equityy ratio. KPIs are not always financial statement measures that are predictivee of results but might be predictors of the futurew profitability of your You must answerthe question: If my business is goingt to change, what would be the firsgt indication?
You must learn to anticipate instead of • New customers. It’s important to know exactly how you make so identifyyour priorities, review budgets, right size your businessw and cut non-essential costs. Doing so will help you fine tune the familiarr andredefine processes. Remove all cash outlays that do notgeneratse revenue. Accountability comes from the bottom-up, so assesss employees. Reduce all non-employee expensesw by 10 percent to 20 percent if Use incentivesto motivate, encourage behavior and retain New equipment and other capital outlays must be You might need to consider postponinhg new capital investments.
Go for revenue save cash Listen toyour employees, existinyg and potential customers for opportunities to bring in more Seek out the best adviser and be flexiblee and ready to change. Explore all revenues opportunities, especially non-expensive marketing activities such as blogging and Refresh the look and function of your Web if needed. Be proactive by investinv in training your sales Cashis king. Manage your transactionsx for greater liquidity by positioning the companyu to operate from a position of You can expecthigher taxes, slower accountes receivable payments and tightening crediyt now, so reduce inventories and collect receivables as aggressivelty as possible.
Communicate with your banker regularlhy so you know what is workingvand acceptable. Now is the time to establisb second relationships withother banks. The futurwe is unpredictable. Being prepared is the best way to get Useassessment tools, benchmarmk goals and set times for achievements Challenge your current maintain a great attitude and take action. the things that brought you success in the past are not necessarilgy going to carryyou forward.