Taking a pulse of your revenue

All Sales Are Not Created Equal

Are you one of the many business owners who, the minute the monthly sales cycle closes, goes straight to the total sales number?  If it’s higher than the previous month do you do the happy dance?  If it’s lower, do you look for the nearest window ledge to jump from?  If so, you are not alone!

But your sales are comprised of more than just a single static total on a graph or report.  They are made up of layers and complex relationships with other parts of your business.  Let’s look at those layers and complex relationships: 

4 Key Indicators To Know About Your Sales

#1: Growth Over Time

Look at total growth and then carve out each revenue stream. (Hopefully, you have your revenue segmented).  Ask yourself questions such as, “Are the product or service lines you are putting your time, effort and marketing dollars being impacted in a positive way or is the needle not moving or going in the opposite direction?

#2: Review Your Customer Demographics

Is the percentage of revenue spread equally over your customer base or do you have 1 or 2 customers that make up 50% of your business? If it’s the latter, then you are at the mercy of that customer’s business.  If it fails, it can take your business with it.   Make it a goal, therefore, to increase your pool of clients and revenue sooner rather than later.

#3: Review Your Sales Incentives

Review your commission structure.  Is it set up to help grow your business or stagnate it? Are you getting the sales but paying out the increase in sales to your salespeople with nothing left for you?  Are you sacrificing long-term profits for short-term sales revenue?

#4: Find Out What Your Sustainable Sales Level Looks Like

Growing for growth sake is not a good idea.  Have a clear idea what sales levels your current business model can handle without cutting quality of service or deliverability of product. Know when you might have to add additional staff to handle your growth.  Many companies don’t plan for growth and without systems in place end up with more unhappy customers than they anticipated.

As a business that focuses in profitability and sustainability we take great satisfaction in seeing our fellow small businesses grow. If any of the indicators above speak to you or your business, give us a call at 407-598-0654 or send us an email to admin@kembizsolutions.com.