Episode 1132 – Is Your Business Tracking What Really Matters?
Meeting in Oregon
Mike Campion and Jackson Pinkoski recently attended a Grow My Cleaning Company live event in Oregon. Unfortunately, they couldn’t record a podcast together there because Jackson’s plane was delayed, and they used their time to hang out with the group. Now, they’re excited to talk about an important topic that affects many parts of a business: tracking and using data effectively.
Tracking the Right Metrics
Mike starts by explaining that people often track things that make them feel good but don’t give the results they want. For example, businesses often focus on revenue instead of profit. Many owners want their company to grow as big as possible, but they don’t think about the risks or the profit. A big company can mean more headaches and less profit. It’s crucial to track profit, not just revenue, to truly understand the health of your business.
Importance of Specific Goals
Most new business owners give vague goals like “as big as possible.” They often mix up revenue and profit when setting targets. Mike emphasizes the need for specific, measurable goals. Tracking only revenue can mislead you. Revenue means risk, and you might end up working more for less money. It’s better to have a smaller, more profitable company than a big one with lots of risks and little profit.
Effective Marketing Metrics
Jackson shares insights on marketing. People often track the wrong things, like the number of social media followers, instead of how many customers or profits those followers generate. Facebook provides a lot of data, but not all of it is useful. Instead of getting caught up in reach and impressions, focus on metrics like leads, conversions, and cost per lead. Effective tracking helps make better decisions and improve your marketing efforts.
Simplifying Data Tracking
Mike gives a simple framework for tracking business data. At least once a month, review your financials. Start with revenue and then check your profit. If both are good, there’s no need to dig deeper. If there’s a problem, look into specific areas like leads, costs, and expenses. Tracking should help you focus on what needs improvement, not just what makes you feel comfortable.
Conclusion
In conclusion, tracking the right metrics is crucial for business success. Focus on profit over revenue and use specific, measurable goals. In marketing, concentrate on useful data that helps improve your results. Regularly review your financials to keep your business on track. By doing this, you can make better decisions and avoid unnecessary risks. For more tips and resources, visit Grow My Cleaning Company’s website and join their Facebook group.