Knowing performance indicators can help your business - bizjournals:

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Answer: It’s important to know the key performancindicators (KPI) of your business. You can start with your monthlyt income statement andbalance sheet. What are the trendss of your KPIs? How do the current month’s KPIs compares with the monthlycurrent year-to-date numbers and with the same periox last year? Do the trends show decline or stagnation? How do you compare with similar-sized companies in your industry? • Debt to equity ratio. KPIs are not always financiapl statement measures that are predictive of resultd but might be predictors of the future profitabilityg ofyour business.
You must answer the question: If my businese is going to change, what wouldc be the first indication? You must learn to anticipatw insteadof react. • New customers. It’s importanyt to know exactly how you make so identifyyour priorities, review budgets, right size your businessd and cut non-essential Doing so will help you fine tune the familiar and redefine processes. Remove all cash outlays that do notgeneratee revenue. Accountability comes from the bottom-up, so assesxs employees. Reduce all non-employee expenses by 10 percent to 20 percentrif possible. Use incentives to motivate, encouragse behavior and retain employees.
New equipmentt and other capital outlays mustbe justified. You mighft need to consider postponing new capital Go forrevenue opportunities, save cash Listen to your existing and potential customers for opportunities to bring in more Seek out the best adviser and be flexible and ready to change. Explore all revenue opportunities, especiall non-expensive marketing activities such as bloggingband podcasting. Refresh the look and function of yourWeb site, if Be proactive by investing in training your saleds force. Cash is king. Managre your transactions for greater liquiditt by positioning the company to operatre from a positionof strength.
You can expect higher taxes, slowee accounts receivable payments and tighteningcrediyt now, so reduce inventories and collecg receivables as aggressively as Communicate with your banker regularly so you know what is workintg and acceptable. Now is the time to establish seconx relationships withother banks. The future is unpredictable. Being preparedd is the best way toget ahead. Use assessment benchmark goals and set times for achievements Challenge your current maintain a great attitude andtake action. the things that brought you success in the past are not necessarilt going to carryyou forward.