Identifying and analysing your business’s primary key drivers is necessary for the growth of income and the stability of your company. That is why it is essential to figure out what they are and how you can effectively take advantage of them.
Here are several ways on how you can successfully identify your key drivers in 2021:
Define and Understand What Key Drivers Are
A key business driver has a direct effect on the growth and development of your business. The success of a small company is influenced by a whole variety of internal and external variables.
Consider the following when identifying your key drivers:
● Key drivers are measurable,
● Key drivers can be acted upon,
● Key drivers represent the growth and progress of your business,
● Key drivers are comparable to specific standards.
For example, revenue is a standard metric that most companies use to measure their performance. Many organisations evaluate this on a daily or weekly basis. However, you must consider that sales revenue might not be the only engine that runs your business.
Evaluate Your Existing Workflow
One of the most effective ways to identify key business drivers is to find patterns in your operations cycle. Look for potential variables that can help you determine what keeps your business running over the years and in the future. If you can understand and analyse what drives your workflow, it will be easy for you to identify your key drivers.
Define Your Target Audience
When identifying key business drivers, it’s essential to consider your ideal customer. Ask yourself the following questions to determine who they are:
● What are their interests?
● What products or services do they commonly avail?
● What is the frequency of their purchase?
● How much is their average spending?
Defining your market and understanding their habits can help narrow the demographic target and focus your marketing efforts on a more profitable market. This could potentially help you corner a market that can generate more sales.
This year when you are business planning, make sure you identify what keeps your business afloat and ensure that you can measure and monitor these drivers. Determining the key drivers of your business can help you maximise your potential as a growing enterprise.
Call us at our Orange office on (02) 6362 0988 or our Molong office on (02) 6366 8044, or alternatively you can fill out our contact form. Lets get started today!