Own a Money Making Machine

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Leads: The number of individuals who are a right-fit for the business, have been made aware of the business through marketing efforts and have indicated that they may be interested in purchasing.

Conversion Rate: The percent of those leads that the business has been able to convert to a closed sale.

Retention Rate: The percent of all past customers that the business has been able to retain this year.

Purchase Frequency: The number of times a customer purchases this year (regardless if they’re new or retained)

Number of Sales Transactions: The total number of times a purchase is made by a customer/client (can be defined as an order, job, invoice, or 'client' if a recurring business model).

Average Sales Transaction Value: The average amount of each purchase that a customer makes.

Cost of Sales: The direct costs that the business incurs when they make a sale. This driver is defined as a percent of revenue.

Payroll Expenses: The amount of expenses related to paying employees and contractors that are not included in the Cost of Sales.

Marketing Expenses: The expenses needed to generate revenue. This driver is defined as a percent of revenue.

Overhead Expenses: The amount of all other operational expenses incurred in the business.

Days Sales Outstanding: The number of days it takes for a customer to pay their balance. If a customer owes the business available cash goes down. If a customer pays what they owe available cash goes up.

Days Inventory Outstanding: The number of days it takes to sell through all inventory. If a business buys inventory available cash goes down. If a business sells the inventory available cash goes up.

Sale or Purchase of Assets: The amount of the tangible and intangible items that the business either buys or sells. If a business buys an asset available cash goes down. If a business sells an asset available cash goes up.

Days Payable Outstanding: The number of days it takes the business to pay it's vendors/suppliers for cost of goods. If a business has a payable to a vendor/supplier then available cash goes up. If a business pays what they owe available cash goes down.

Consuming or Paying Down Debt: The amount of cash borrowed for use in the business. If a business pays down debt available cash goes down. If a business uses debt available cash goes up.

Owner Investments or Draw: The amount of cash that the owner puts in or takes out of the business. If the owner withdraws cash available cash goes down. If the business owner invests cash in their business available cash goes up.