What are KPIs and How do They Impact Your Business?

Far too often, we find that a lot of our prospects and customers are flying blind – they are not given the key information they need to know about their businesses on a regular basis to help them make wise business decisions. This is flat out unacceptable – and puts a major roadblock in the path to a successful and prospering business.

At Sound Business Services (SBS), we believe in going the extra mile, and finding all the important information and data we can to help you grow your business and reach your goals. That all starts with key performance indicators (KPIs).

With KPIs, we not only can see how your business is running and what aspects need to be fixed or changed, but also find specific data that helps us deliver you powerful solutions to business growth, now and into the future. With KPI reporting, we get a vision of the key drivers that decide your company’s success. KPIs enable us to track the key metrics that determine the goals you are trying to reach as a company, which can be financial or non-financial, such as hours worked or closed leads vs. lost leads.

For example, with our car wash clients, we track the number of cars washed each month (non-financial data). We then divide total wash revenue per month (financial data) by the number of cars. This blending of financial and non-financial data leads to powerful information that helps determine growth strategies. When you determine the dollars per car, car wash owners can see trends and discover how much they need to upsell to customers to make up for any missed revenue. Another key area is tracking the number of rain days in a month, which can be devastating to a car wash business. We then compare those numbers month-to-month and help clients plan accordingly.

Examples of Labor KPIs 

This is just the tip of the iceberg of what we can track. Other KPIs on the labor side include utilization rate, which helps determine if the billable time your staff spends on a client meets the hourly workweek, or if they’re spending too much time for what you’re billing. Another task is finding out the revenue per hour, which gives a scope of your hiring process, if you’re pricing your services correctly and how well you’re handling your sales. Simply put, if the job takes you longer to complete than the hours you’re budgeting for, you must charge your clients more. This is all about budgeting hours vs. actual hours.

How about the ROI on total labor cost, which breaks down the actual company profit you make on the total cost of your staff? This says a lot because it shows how important your team is and what they bring to the table. A highly effective team ensures your investment is worth it, but a team that’s not producing likely means you must shift your focus on strategically improving the very foundation of the company.

Examples of Non-Labor KPIs

As mentioned before, the combination of tracking financial and non-financial data really gives us the key metrics we need to help you grow and succeed.

With non-labor KPIs, there are a number of areas to track. One is gross profit percentage, which illustrates how efficient your company is at delivering its services. In other words, how much are you truly making on the work you do? We can track this by client, job, team, location and many other areas to get transparent results, and see your strengths and weaknesses.

Other metrics to track include client retention rate and employee turnover rate. It’s so important to not just get new business, but also keep these clients happy for the long run so that they stay with you. That requires having a great staff that will always go the extra mile to carry out your message and please the customer. If you’re seeing frequent turnover in your clients or staff, you must work to see why and strategize what to do to fix this problem. SBS can help with this!

Let Us Know How We Can Help

If this all seems overwhelming, that’s normal. One thing we often realize is that our clients may not know what KPIs they should be tracking or monitoring. Don’t worry because we are here to help!

The first thing we do is sit down with you to understand your pain points. At the same time, we will review your financials and put together a list of recommended KPIs to track for you. Then, we’ll meet with you on a regular basis to go over your KPIs, discuss trends, celebrate successes and learn from mistakes.

It’s a painless, yet powerful process to finding the pulse of your business, and determining what can be done to ignite business growth. If you would like to look at what specific KPIs work best for your business, or have any questions, contact us today, and you’ll be on your way to realizing success and recognizing your goals.

Our Thanksgiving Recipe for Success and Happiness

With Thanksgiving in just a few weeks, we turn to family, football and feasts. But, I think we often lose sight of what the holiday is all about: giving thanks to those that matter the most, whether it be through inspiration, love or support, as well as being grateful for what we have.

As small business owners, this means giving thanks to those who helped us get to where we are today. That likely involves our clients and customers, staff, friends, and family; without them, our businesses and our lives would be vastly different.

Here is my Thanksgiving advice we can both carve up to recognize these highly important people in our lives, and plan for a better and happier future for our businesses and our families.

Give Better Service to Clients

No matter how great your product or offering is, it means very little without great customer service. In this day and age where competitors are literally an internet search away, you must constantly keep your customers happy and come up with forward-thinking solutions that set you apart. So, make sure your team is on the same page with the message you want to portray to your customers because it truly must be a united front working toward the same goal.

Give Clients Something to Remember 

Sometimes, a client or customer just wants to feel appreciated. You would be amazed at how far a simple, kind gesture really goes. Perhaps, you can send your client a gift thanking them for placing trust in you and your business, or even just a handwritten thank you may suffice. Yes, those still exist! At Sound Business Services, we believe happy customers = happy business. We are truly happiest when you are happy and thriving. Our greatest joy comes from seeing you succeed, and helping you reach all your goals and dreams.

Give Your Staff a Treat

Just like Thanksgiving is full of treats – a slice of pumpkin pie or turkey fresh out of the oven – your business should be, too.

Your employees deserve to feel appreciated for the hard work and effort they put in on your behalf to make your business flow and succeed. So, give your staff a treat. For example, go big with a bonus, a company trip or get-together, an award, or special gift … or scale it down with encouragement and praise. That goes a long way, too.

Whatever you do, you must do something because you can’t take your staff for granted. For any business to succeed, you need a team who is willing to go above and beyond to carry out your message, truly care about the clients and do whatever it takes to get the job done. I learned long ago that I could not do this alone, and I certainly couldn’t be everywhere at once. More than a decade later, I can truly say that I have the best staff I could ever hope for. I have a special place in my heart for them.

Give to Yourself by Making Time for Your Family

As some of you may know, I have four young children and an amazing wife who support me no matter what is going on – each one brings such joy and completion to my life. No matter what life throws our way, we always have our family, and I’m so grateful for that.

As small business owners wearing many hats, we often may not have enough time for our loved ones. Yes, we are trying to put food on the table and give them better lives, but we are also sacrificing unbridled joy and missing important events, such as seeing them grow up or attending a son’s soccer game or daughter’s piano recital.

Over the years, I’ve discovered how important it is to make time for them by embracing work/life balance and delegating to my team. Your business must be able to function without you being everywhere at once, if you truly want to live the happy and healthy life you desire and deserve. Delegating to your team, for example, is a great way to carve out the time you need for your family, while also empowering your team to make a difference and feel important.

My Faith

When I think of giving thanks and honoring those that matter the most, Jesus Christ, and what He has done for me, are at the very top. I’m sure you’ve heard me say it, but without Jesus Christ, I don’t know where I would be personally, in my family or in my business. I am so thankful to Him and His sacrifice on the cross for my sins. I am thankful for the strength and wisdom He gives me every day and the assurance that one day I will be with Him for all eternity.

Our Thanks to You: A Free Consultation  

As a way to thank you for your unwavering support and our way of giving back, we are offering our first 20 customers who reach out a free business-process checkup and design consultation.

As you know, technology is constantly changing and the apps and business processes that were implemented five or 10 years ago may no longer be the best for your business. At Sound Business Services, we strive to stay on top of the latest technology to help our customers do what they do in the most efficient manner. This free consultation that we are offering to our first 20 customers is by no means a sales or recruitment call, or an attempt to sell you more services; it is simply to help you grow your business and to say thanks for the trust you place in us.

So, don’t hesitate to contact us today to get started, or if you have any questions. We will keep serving you the best we can, and hope to make your 2019 business year the best yet!