Six simple business metrics for your web development business Six simple business metrics for your web development business

Six simple business metrics for your web development company

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.

  1. 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
  2. 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
  3. Project Size – for all of the obvious reasons, and remember, a lion does not live on mice. – Read More
  4. 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
  5. Overall hourly rate over time – If it trends down for more than two consescutive months, you need to start retooling your business – Read More
  6. 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.

Editor’s Note

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.

 

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 Written By Steve French

 

This entry was posted on Wednesday, September 28th, 2011 at 9:00 pmand is filed under Finance, Formulas . You can follow any comments to this entry through the RSS 2.0 feed. You can leave a comment, or trackback from your own site.

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