Bradley recently shared insights from his latest video podcast episode, focusing on the invaluable lessons learned at the Tampa mastermind. The predominant theme that emerged from the discussions was the critical importance of knowing your numbers. This simple concept became the cornerstone of Bradley’s reflection and the basis for a comprehensive guide he is developing for the community – Know Your Numbers.
The Importance of Knowing Your Numbers
In the business world, ideas are abundant, but successful implementation is what sets thriving enterprises apart. Bradley emphasized that understanding and tracking key business metrics is not just beneficial but essential. Recognizing this, he began contemplating which numbers are crucial for his business and how he could effectively share this knowledge with his audience.
This is where the living document, “Know Your Numbers,” comes into play. This template is designed to evolve as new metrics and insights emerge. Rather than delaying the release of this resource until it was exhaustive, Bradley chose to share it promptly, covering the most significant metrics that apply to a broad range of businesses.
Key Metrics To Monitor
Bradley structured the template into four main categories: business model, marketing, sales, and financial numbers.
Here’s a brief overview of the essential metrics included:
Business Model Metrics
- Number of Customers: Understand your customer base. Whether you have 35 or 4,000 customers, this number is fundamental.
- Average Customer Value (ACV): Measure the average annual revenue per customer.
- Lifetime Value (LTV): Calculate the total revenue a customer generates over their entire relationship with your business.
- Gross Profit
- Revenue Per Person
Marketing Metrics
- Cost Per Lead (CPL): Determine the average cost to acquire a lead, considering all traffic sources.
- Customer Acquisition Cost (CAC): Total your marketing and sales expenses, then divide by the number of new customers to understand the cost of acquiring each customer.
Sales Metrics
- Sales Velocity: Compare sales figures from the same period last year and last month to assess growth and performance.
- Sales Break Even: Know how many sales a salesperson needs to make to cover their costs and start generating profit.
Financial Metrics
- MRR – Monthly Run Rate and Burn Rate: Monitor your average monthly revenue and expenses to understand profitability.
- Annual Revenue and Profitability: Keep track of last year’s revenue and profit to measure growth.
- Year-Over-Year Growth Rate: Calculate how much your revenue grows each year.
- Team and Marketing Spend as Percentage of Revenue: Evaluate how much of your revenue is spent on your team and marketing efforts.
- Rule of 40: Profit & Growth Rate
Practical Implementation of Knowing Your Numbers
Bradley encouraged business owners to actively use these metrics to make informed decisions. You can download the “Know Your Numbers” template via blueprintOS.com/assets to track these numbers in your business.
Understanding and monitoring these key metrics can provide invaluable insights and drive business growth. The goal of BlueprintOS is to empower fellow entrepreneurs.
For those interested in leveraging this resource, visit blueprintOS.com/assets and integrate these insights into your business strategy to foster informed decision-making and sustainable growth.
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BRADLEY HAMNER
Bradley is a Business Growth Coach and Value Builder consultant, empowering entrepreneurs to become architects of their own success. He shares his revolutionary BlueprintOS methodology, unlocking businesses’ true potential and driving remarkable achievements.