Business and HR Metrics that Help Grow Small Businesses

1. WHATS IN YOURMETRIC TOOLBOX?The benefits and drawbacks ofpotential metrics best suited to asuccessful businessJoey Price | Jumpstart:HR@JumpstartHR | www.jumpstart-

2. How do we definebusiness metric?A business metric isany type ofmeasurement used togauge some quantifiablecomponent of acompanysperformance.@JumpstartHR | www.jumpstart- 3. KEY TAKEAWAY #1:Business Metrics help you define, measure and react to companyperformance.@JumpstartHR | www.jumpstart- 4. THE RELATIONSHIP BETWEEN DATA,DECISIONS AND METRICSEvery morning, we check: The time Our breath The weatherData@JumpstartHR | www.jumpstart- 5. THE RELATIONSHIP BETWEEN DATAAND METRICSIn response, we: Get dressed (or stay inbed) Brush our teeth Bring the umbrellaDecision@JumpstartHR | www.jumpstart- 6. THE RELATIONSHIP BETWEEN DATA,DECISIONS AND METRICSAs a result, we: Get to work on time Get fresh breath Protect ourselves from theelementsResults@JumpstartHR | www.jumpstart- 7. KEY TAKEAWAY #2:Good data leads to good decisions which results in winning results.Data Decision Results@JumpstartHR | www.jumpstart- 8. 1) SALES REVENUE ($) =CUSTOMER PURCHASES COSTSASSOCIATED WITH PURCHASEBenefits Drawbacks@JumpstartHR | www.jumpstart- 9. 2) CUSTOMER LOYALTY ANDRETENTION = THE STICKINESS OFYOUR BUSINESSBenefits Drawbacks@JumpstartHR | www.jumpstart- 10. 3) COST OF CUSTOMER ACQUISITION= TOTAL ACQUISITION EXPENSES /TOTAL NEW CUSTOMERSBenefits Drawbacks@JumpstartHR | www.jumpstart- 11. 4) OPERATING PRODUCTIVITY =REVENUE / NUMBER OF EMPLOYEESBenefits Drawbacks@JumpstartHR | www.jumpstart- 12. 5) SIZE OF GROSS MARGIN (%) =(TOTAL SALES REVENUE COST OFGOOD SOLD) / TOTAL SALES REVENUEBenefits Drawbacks@JumpstartHR | www.jumpstart- 13. 6) MONTHLY PROFIT OR LOSS ($) =PRICE OF PRODUCT OR SERVICE (FIXED AND VARIABLE COST OFPRODUCT)Benefits Drawbacks@JumpstartHR | www.jumpstart- 14. 7) OVERHEAD COSTS =FIXED COSTS THAT DO NOT DEPENDON AMOUNT OF PRODUCT SOLDBenefits Drawbacks@JumpstartHR | www.jumpstart- 15. 8) VARIABLE COST PERCENTAGE (%) =TOTAL VARIABLE COSTS / TOTALSALESBenefits Drawbacks@JumpstartHR | www.jumpstart- 16. 9) INVENTORY SIZE =INVENTORY READY OR SOON TO BEREADY FOR SALEBenefits Drawbacks@JumpstartHR | www.jumpstart- 17. 10) HOURS WORKED PER PROCESS =TOTAL LABOR HOURS PER PROJECTBenefits Drawbacks@JumpstartHR | www.jumpstart- 18. KEY TAKEAWAY #3:Business Metrics help your business stay on track but not all metrics arealike.@JumpstartHR | www.jumpstart- 19. QUESTIONS?Contact Me: About Jumpstart:HR Email: [email protected] Web: Jumpstart-hr.com Phone: 301-244-8577 LinkedIn:www.linkedin.com/in/joeyvpriceAt Jumpstart:HR, we do the HR workfor you. Were proud to offer cutting-edge, customized HR services built foryour small to medium sized business.We work with your organization as avirtual or on-site service provider tostreamline your Human Resourcepolicies, procedures, and challenges inorder to let you do what you want to do:run your business. We provide the HRknowledge and implementationstrategies to ensure your organizationis adhering to government standardswhile increasing employee satisfactionand productivity.@JumpstartHR | www.jumpstart-