Establishing a small business is an adventure that will fill you with knowledge and experience and help you obtain the necessary income to give your family the lifestyle they deserve. Currently, there are approximately 400 million small and medium-sized businesses around the world, they are a fundamental part of the economy and generate between 60 and 70% of the jobs, according to information from the National Action Plans on Business and Human Rights.
Numbers can become your best allies to make decisions, understand the economic context and give you more certainty about the future of your business. Considering statistics and data helps you give your business a better chance of success and improve revenues and sales. For example, by analyzing your monthly results, you will be able to identify good and bad practices within the operation and the level of sales. If these numbers are not what you would like, you can analyze the possibility of accessing financing such as ITIN loans to improve and boost your company numbers.
Why do you need to consider these numbers?
Most entrepreneurs delegate the financial aspect. However, this implies a risk, if the business owner does not understand the numbers, they are probably losing money without knowing it. Even if you consider this topic complex, make an effort to know your company’s finances in detail, either through mentoring or training. With this, you can develop better financial planning and allocate budgets to the business areas that really need it.
Keeping good statistics monitoring can be the difference between a successful and scalable venture, and one only survives the passing of days, months, and even years. If you do not have the necessary budget to carry out this monitoring, you can turn to finance alternatives such as ITIN loans to start this project, which will bring great benefits to your company.
Stats you need to follow right now to improve your business
● Recurring customers and consumers
Regardless of the type of business you own, it is essential to know the statistics of recurring customers and occasional consumers of your company, with you can design promotions, loyalty programs, and products according to their needs effectively. Remember to give the same treatment to new and regular customers and make them feel special from day one.
● Conversion rates
The conversion rate, in simple terms, is the result of dividing the number of people who entered your store by the number who bought. Whether you have a physical or online business, knowing how many leads are converted into customers is necessary and understanding why they do not complete this process.
● Cash flow
Financial metrics are vital for the success of a business, your cash flow is the first indicator that sales are declining or, on the contrary, that your company is on the right track. The simple ratio of cash received to cash spent results in net cash flow; it is a serious red flag if the result is negative.
● Gross margin
This concept is the difference between production, purchase, and retail costs. Keeping an adequate tracking of this indicator will allow you to make processes more efficient or reduce expenses to obtain higher profits.
Some entrepreneurs think that income is the same as profit, this mistake can bankrupt any business. Keep rigorous control over your accounting to establish your profits. This way, you will really know how much you earn and, above all, if your business is profitable.
Other special stats
These are not the only statistics that you should take into account within your company; multiple aspects can generate relevant data for the growth of an institution. Some of the most pertinent is customer acquisition costs (CAC), average revenue per user (ARPU), burn rate and cash runway, and customer concentration, to mention a few.
Data analysis is an assignment that will generate significant benefits for your company, in case you need help to perform this monitoring and analysis, you can resort to specialized agencies, digital software, or freelance workers to achieve it. If you do not have the budget for this task, get to know financing options such as ITIN loans, which will help you obtain greater profits for your company.