Louis Massaro explains why you need baseline metrics before opening a new office. Document your current office's fuel costs, labor percentages, marketing ROI, and other key numbers to build a financial model. Use it to track whether the new location hits the same targets and spot where you can improve.
Third thing you want to do is you want to establish baseline metrics. You need to know what percentage do you spend in fuel? What percentage do you spend on labor? You need to have a baseline percentage of what it is you spend. This is part of your model, right? This is knowing your numbers, what they are, so that when you go to duplicate it, you could see, am I on track or Am I not on track? So you want to have your baseline metrics so that you can set up your P&Ls and your cash flow statement, and you can know exactly what's going on. Same thing with your marketing ROI, all right? So all the key metrics that you need to know in your current office, figure out what the baseline is, like where you're at, all right? Maybe you can improve them, whatever it might be, but then this way you can carry them over to the new office, all right?
