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Small Business Investing

Managing a Small Business

What are some key metrics that a small business owner should analyze to grow his business?

According to management experts at www.Forbes.com, entrepreneurs and small business owners may be very adept at creating a business, but may lack the skills or discipline and attention to detail that proper management of the financial aspects of the business requires. There are many different financial metrics a small business investor or owner should track, including: sales revenue; customer loyalty and retention; cost associated to acquire a customer; staff productivity; profit margins/earnings; monthly profit/loss; overhead expenses; fixed/variable costs; inventory control; and hours worked per functional process. Experts interviewed by The Washington Post would also specifically include pre-tax net profit margin, current ratio/quick ratio (assets divided by liabilities/cash plus accounts receivable divided by current liabilities), and accounts payable days/accounts receivable days (how long it takes to pay and receive payment).



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