Small Business Investing

Managing a Small Business

What are additional key metrics that require the focus of small business owners and investors?

Experts at Inc. offer four additional metrics that allow owners/investors a view inside a business that may indicate success or trouble in the near future. These include cost to acquire customers (all costs associated with sales and marketing divided by number of clients); lifetime value of a customer (assuming a period of time, how much each customer spends with the company); revenue percentages (analyzing each discrete source of revenue and profit of the business); and churn rate (what percentage of new clients and repeat clients for each period, expressing this revenue as a percentage, for each service or product offering).


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