Overtime. Track your overtime to make sure it correlates to sales. Too often, overtime is unwarranted or expected, regardless of the workload. Keep in mind that overtime can be very healthy and most businesses find that when overtime is monitored well, the most profitable months include substantial overtime. Usually, it’s better to have overtime than to add employees—especially in the current uncertain economic conditions.
I am not going to suggest that you track all of these numbers, but I would start with the most relevant to your business. These key performance metrics are essential to managing your business. Our peer groups track most of these metrics and share them each month for comparison purposes. Many peer group members are now making educated decisions based on solid information.
Mitch Evans is president of Mitch Evans Consulting, which is targeted to meet the consulting needs of the quick and small commercial printing industry. His areas of expertise are in strategic planning, valuation, mergers and acquisition, financial planning, new technology, and “1-2-1” coaching. Contact him at 561/351-6950 or email@example.com.