Business and HR Metrics that Help Grow Small Businesses

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Metrics are the measurements by which you grow, record and account for the status of your business. The following metrics include a list of formulas that apply to HR, finance, marketing, sales and overall business development.

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  • ----- Meeting Notes (5/9/13 09:37) -----IntroductionThank Andy the President and Tracy
  • Business and HR Metrics that Help Grow Small Businesses

    1. 1. WHATS IN YOURMETRIC TOOLBOX?The benefits and drawbacks ofpotential metrics best suited to asuccessful businessJoey Price | Jumpstart:HR@JumpstartHR | www.jumpstart-
    2. 2. How do we define“business metric?”A business metric is…“any type ofmeasurement used togauge some quantifiablecomponent of acompanysperformance.”@JumpstartHR | www.jumpstart-
    3. 3. KEY TAKEAWAY #1:Business Metrics help you define, measure and react to companyperformance.@JumpstartHR | www.jumpstart-
    4. 4. THE RELATIONSHIP BETWEEN DATA,DECISIONS AND METRICSEvery morning, we check: The time… Our breath… The weather…Data@JumpstartHR | www.jumpstart-
    5. 5. THE RELATIONSHIP BETWEEN DATAAND METRICSIn response, we: Get dressed (or stay inbed)… Brush our teeth… Bring the umbrella…Decision@JumpstartHR | www.jumpstart-
    6. 6. THE RELATIONSHIP BETWEEN DATA,DECISIONS AND METRICSAs a result, we: Get to work on time… Get fresh breath… Protect ourselves from theelements…Results@JumpstartHR | www.jumpstart-
    7. 7. KEY TAKEAWAY #2:Good data leads to good decisions which results in winning results.Data Decision Results@JumpstartHR | www.jumpstart-
    8. 8. 1) SALES REVENUE ($) =CUSTOMER PURCHASES – COSTSASSOCIATED WITH PURCHASEBenefits Drawbacks@JumpstartHR | www.jumpstart-
    9. 9. 2) CUSTOMER LOYALTY ANDRETENTION = THE “STICKINESS” OFYOUR BUSINESSBenefits Drawbacks@JumpstartHR | www.jumpstart-
    10. 10. 3) COST OF CUSTOMER ACQUISITION= TOTAL ACQUISITION EXPENSES /TOTAL NEW CUSTOMERSBenefits Drawbacks@JumpstartHR | www.jumpstart-
    11. 11. 4) OPERATING PRODUCTIVITY =REVENUE / NUMBER OF EMPLOYEESBenefits Drawbacks@JumpstartHR | www.jumpstart-
    12. 12. 5) SIZE OF GROSS MARGIN (%) =(TOTAL SALES REVENUE – COST OFGOOD SOLD) / TOTAL SALES REVENUEBenefits Drawbacks@JumpstartHR | www.jumpstart-
    13. 13. 6) MONTHLY PROFIT OR LOSS ($) =PRICE OF PRODUCT OR SERVICE –(FIXED AND VARIABLE COST OFPRODUCT)Benefits Drawbacks@JumpstartHR | www.jumpstart-
    14. 14. 7) OVERHEAD COSTS =FIXED COSTS THAT DO NOT DEPENDON AMOUNT OF PRODUCT SOLDBenefits Drawbacks@JumpstartHR | www.jumpstart-
    15. 15. 8) VARIABLE COST PERCENTAGE (%) =TOTAL VARIABLE COSTS / TOTALSALESBenefits Drawbacks@JumpstartHR | www.jumpstart-
    16. 16. 9) INVENTORY SIZE =INVENTORY READY OR SOON TO BEREADY FOR SALEBenefits Drawbacks@JumpstartHR | www.jumpstart-
    17. 17. 10) HOURS WORKED PER PROCESS =TOTAL LABOR HOURS PER PROJECTBenefits Drawbacks@JumpstartHR | www.jumpstart-
    18. 18. KEY TAKEAWAY #3:Business Metrics help your business stay on track but not all metrics arealike.@JumpstartHR | www.jumpstart-
    19. 19. QUESTIONS?Contact Me: About Jumpstart:HR Email: jprice@jumpstart-hr.com Web: Jumpstart-hr.com Phone: 301-244-8577 LinkedIn:www.linkedin.com/in/joeyvpriceAt Jumpstart:HR, we do the HR workfor you. We’re 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-

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