What metrics should you track to improve your clients' financial performance?

The most fundamental metrics are revenue and profitability. Revenue indicates the total income generated, while profitability measures how much income remains after all expenses are deducted. Encourage clients to track: Gross Revenue Net Profit Margins Year-over-Year Growth in Revenue

Delve into granular analysis. Break down revenue sources to identify high-performing products or services. Explore cost structures—guide clients in optimizing expenses without compromising quality. Emphasize customer lifetime value and retention strategies, nurturing existing relationships. Foster a comprehensive understanding of financial health. Encourage proactive financial planning, enabling clients to foresee challenges and capitalize on opportunities. This strategic approach, coupled with continual goal reassessment, fortifies financial resilience and long-term success.

Instill proactive financial habits. Encourage clients to negotiate favorable payment terms with suppliers and incentivize early customer payments. Implement efficient inventory management strategies to avoid tying up excessive capital. Diversify revenue streams for consistent cash inflows. Facilitate financial scenario planning—prepare clients to navigate unexpected challenges. Foster a mindset of adaptability and agility, enabling quick responses to market fluctuations. By integrating these practices, clients can enhance cash flow resilience and maintain robust liquidity.

In my experience Cash Flow: Track operating, investing, and financing cash flows to ensure there's enough liquidity to cover short-term obligations. Identify patterns and potential cash flow issues. some questions to answer: How quickly are you able to convert sales into cash receipts? What is your average accounts receivable collection period? Do you offer credit terms to customers, and if so, what are the typical payment terms? How closely do you monitor and enforce payment terms with clients? finding clarity and transparency of these details will enhance tracking metrics.

Cash flow is the lifeblood of any business, representing the net amount of cash being transferred into and out of a business. Liquidity, on the other hand, measures the ability to cover short-term obligations. Key metrics include: Cash Flow Statements (Operating, Investing, and Financing Cash Flows) Current and Quick Ratios

Die Customer-Lifetime-Value ist besonders im B2C-Bereich eine stark unterschätzte Zahl. Ein einmal gewonnener, zufriedener Kunde möchte ja auch immer wieder gerne kaufen. Wir Menschen sind Gewohnheits-Tiere. Wenn wir diese Gewohnheit beim Kunden unterstützen und ggfs. sogar dabei helfen eine neue Gewohnheit (mit uns) zu erschaffen, dann binden wir den Kunden sehr lange an uns. In der Touristik (Reiseveranstalter, Reisebüros, Hotels) ist eine Stammkundenquote von über 50 % völlig normal und für jedes neue Unternehmen ein wichtiges Ziel. Mit den richtigen Beziehungsmaßnahmen, kann das jedes Unternehmen erreichen.

Understanding the value a customer brings over time (CLV) versus the cost to acquire them (CAC) is vital. These metrics help in evaluating the effectiveness of marketing strategies and customer relationship management. They include: Average Customer Lifetime Value Customer Acquisition Cost CLV to CAC Ratio

Guide clients to enhance customer engagement and loyalty through personalized experiences. Implement effective customer retention programs, leveraging incentives and loyalty initiatives. Encourage clients to leverage data analytics for segment-specific CLV and CAC insights, refining targeting strategies. Optimize marketing channels based on performance metrics to ensure cost-effective customer acquisition. Emphasize the importance of continuous improvement, adapting strategies based on evolving customer behaviors and market dynamics for lasting success.

One aspect of productivity that this does not talk about is focusing vs. getting distracted. In 2024, the capability of humans to stay focused on a task is sharply below where it was 50 or 100 years ago. Teaching your clients how to stay focused, reduce distractions and distractability, and bring themselves back to focus quickly is the #1 way to increase productivity.

Productivity and efficiency metrics help in understanding how well resources are being utilized. They include: Employee Productivity Rates (e.g., revenue per employee) Operational Efficiency Ratios (e.g., inventory turnover, asset utilization)

Encourage clients to implement time management strategies, prioritize tasks, and set realistic goals for teams. Promote the adoption of technology for task automation, reducing manual efforts. Facilitate regular performance reviews to identify bottlenecks and refine processes. Emphasize the importance of team empowerment, fostering a collaborative and innovative work culture. Advise clients to invest in skill development, ensuring teams have the necessary expertise to optimize processes. Regularly assess key performance indicators to gauge progress and guide continuous improvement initiatives.

The job of the business coach is to help their clients analyze the research, decide on next steps, and figure out strategies to get around obstacles that come up. All as a way of achieving goals. It's not to do the researching their market opportunities, etc., for the client. That's their job.

Encourage clients to conduct thorough market research to identify emerging trends and untapped opportunities. Assist in developing a compelling value proposition that addresses customer needs uniquely. Guide clients in creating a culture of innovation within their teams, fostering creativity and continuous learning. Implement methods like design thinking and customer feedback loops to test and iterate ideas. Help clients establish key performance indicators specific to growth and innovation, providing actionable insights for strategic decisions.

Number of sales conversations, monthly or yearly, and their close rate. When you increase your close rate from say 30% to 40% to... 80%, you spend less time on sales calls and more time serving your people. In addition, tracking the # of sales calls to closes will tell you if you have a marketing problem, messaging problem, or sales problem. When you know where and what to tweak to improve profitability you save time, energy, and resources.