After nine years in business at the best web development shop in Atlanta, here are the simple business metrics I wish I had kept from the beginning.
- How long do clients take to pay their invoices – it’s easy to overlook, bit if you don’t manage these they can creep up fast and it is hard to rachet expectations back down. Read more
- Which clients has the highest hourly rate – Not always the easiest thing to track, particularly if you have a mix of hourly and fixed price projects, but you have to know who gets the extra effort – Read More
- Project Size – for all of the obvious reasons, and remember, a lion does not live on mice. – Read More
- Internal vs External Work – This metric has a host of obvious benefits, and it will usually show you where and what to outsource to outside services. – Read More
- Overall hourly rate over time – If it trends down for more than two consescutive months, you need to start retooling your business – Read More
- Project Length – How many days from start to finish? It is easy to confuse this with project size, but how much time is lost in delays and approvals? – Read More
I track all of these simple business metrics in my Profit Awareness web app. Indeed, I wrote the app because it is too much of a pain to do it manually, and QuickBooks is of absolutely no help at all with most of them.
This blog post originally appeared on the Profit Awareness Blog – as that app is up for sale, it has been consolidated into the main Digital Tool Factory blog.
||Written By Steve French|