What does ROI stand for? It means Return On Investment; the effort and time you put into something and the measurable return for your hard work.
Have you ever tried to shoot a basketball into a net? For most of us, the first shot is almost always a miss. But from that first shot we make many small and large adjustments. Things like aim more to the right, use more force, create more arc, push with your legs and eliminate distractions.
Imagine going through this kind of process for your business. What kind of success can you achieve based on accurate evaluation and ongoing improvement? Here are some ways to help you evaluate your progress and point you towards building a successful business.
- Establish a goal. Give it a time frame and completion date.
- Separate your goal into smaller tasks and give each task a completion time. However, be prepared that you may need to adjust your completion date depending on the circumstances.
- Decide on what you want to measure. Here are some more common areas that you may want to measure depending on your goal:
- Number of prospects
- Number of customers
- Time needed for each process related to your business (where can you improve/streamline?)
- Retail value of sales
- Amount of expenses in relation to income produced
- Changes in seasonal cycle
- Impact of training on performance
- Performance level of team members
- Online marketing results
4. Once you have this data, look for improvements, trends, patterns, negatives, positives and how you are measuring up to your goal.
5. Decide on how often you need to evaluate your progress.
6. Create a report and make some conclusions on how to improve.
It’s important for any business, whether home-based, small or large, to evaluate their process of doing business. This process will give you insights to quickly improve, adjust, minimize risks and help you plan for the future.
How do you evaluate your ROI? Share with us in the comments section below!