Mike Andes breaks down 11 essential metrics every business owner should track daily or weekly: cash on hand, customer acquisition cost, lead volume, close ratio, estimate acceptance rate, labor costs, and overhead. Knowing these numbers is how you spot problems before they become expensive.
Everyone talks about knowing their numbers, but what are some of the numbers you need to know on a daily, weekly, monthly basis? First off, cash on hand, how much money you have in the bank? Money is like oxygen. Customer acquisition cost, the number of leads that are coming in your close ratio. What percentage of your estimates are actually getting accepted? Your budget? Hour capacity? How much work can you actually get on the schedule without overburdening your crew or your equipment? Your efficiency score? How efficient is the labor that you're actually producing from your employees? Overdue invoices? How much of work are you doing and never getting paid for? The percentage of your revenue is going to direct labor? The wages of team out in the field? And lastly, what percentage of your revenue is going to admin costs like rent, utilities, and the cost of having people in the office.
