How to Start Tracking Your Business Metrics

How often are you looking at the numbers in your business?  Most business owners I come across know they should be looking at their numbers, but they just simply aren’t.

I often hear the phrase, “I’m just not a numbers person!”  I know this is a scary topic for most entrepreneurs and I know most of you avoid thinking about this at all.  But as the CEO, you have to understand the metrics behind your business as these speak to its underlying health and longevity.

The numbers of your business can tell you if what you are doing is working, whether you should stop wasting your money/time, or if you should shift your focus to something else.

Were you wondering if that new FB ads promo you’re running is effective in bringing in new leads?  The data can tell you if your new email sequence is actually being opened, or if your Instagram strategy is driving traffic to your website.

So much can be gathered by looking at the numbers.  It can be daunting to start, but here are 5 easy steps to get started with tracking your business metrics.

Start Tracking

I really suggest starting simple here.  Pinpoint easy and Important numbers like sales, opt-ins, follows, website traffic, and email open rates. Track them historically if possible and start to get an idea of what they have been historically up until today.

Set Goals

After you start gathering the data and have a baseline, determine where you want to go and what you want to accomplish.  Be realistic though.  Don’t set a goal to double your profits in a month cause that’s just not feasible. Set realistic goals and start to guide your business there with small but meaningful changes in your day-to-day.  

Interpret the Data

Once you’ve been tracking data for a few months, you’ll start to see trends or areas that can be adjusted.  Maybe you’ll see a significant month over month decrease in the number of subscribers to your list.  Dig in the details to see what is causing any changes.

Report the Data

Regularly share the findings with your team or key stakeholders.  They can bring insights and solutions to problems that you are seeing that maybe you haven’t thought of.  Make sure you create a regular reporting schedule (daily, monthly, or quarterly).

Adjust & Repeat

Your business is ever-changing.  Be on the lookout for new points to track or if something is no longer useful to measure. Keep measuring, monitoring, and adjusting as your business changes and grows.