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

  1. Number of Customers: Understand your customer base. Whether you have 35 or 4,000 customers, this number is fundamental.
  2. Average Customer Value (ACV): Measure the average annual revenue per customer.
  3. Lifetime Value (LTV): Calculate the total revenue a customer generates over their entire relationship with your business.
  4. Gross Profit
  5. Revenue Per Person

Marketing Metrics

  1. Cost Per Lead (CPL): Determine the average cost to acquire a lead, considering all traffic sources.
  2. 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

  1. Sales Velocity: Compare sales figures from the same period last year and last month to assess growth and performance.