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Reviewing the performance of your home business regularly is a must-- and do
it every day if possible!
It's easier said than done. After going through a stressed out day, its
difficult to review your home business but it is the last chore of the day and
it must be done.
One of the biggest cultivated habits you can have in your home business is to
ascertain how it moves. Were you in profit or loss for the day? How many orders
have lined up for execution in your home business? are some of the question that
should be answered on a daily basis.
Apart from profits, this habit will also give you a fair idea if your home
business is actually running in loss! And what can you do about it!
Some of the common review areas to be done with your home business is listed
below. Go through them and make it a habit to review your home business every
day.
Reviewing Your Performance.
So you've made it through your first year. When you quit your job, you probably
thought you'd escaped performance reviews for good, but I've got some bad news
for you. It's actually a really good idea to review your performance at your own
company, to take a look back and see what you did wrong and what you did right.
But do you have to wait for an entire year to review your home business? Your
daily routine must take care of it especially when you start out trying to make
a market of your own.
Did You Make a Profit or a Loss?
The first, and most important, question to answer is this: what does your
balance sheet look like? You need to honestly add up all the numbers -- don't be
tempted to add on money that you think you're a few days from getting, or take
away bad purchases that proved useful in your personal life, for example.
Hopefully you kept electronic records, so this shouldn't be too much trouble.
Once you know how you did, you need to look at how to do better. If you made a
loss (as almost everyone does in their first year), what can you do about it?
Where did the money go? If you made a profit then, well, congratulations! But
you still need to think about how much of your profit to re-invest in the
business, and how you can increase your profits next year. Remember that money
makes money: once you're making a profit, wise investment can make it grow
exponentially.
How Many Customers Did You Get?
Now, take a look at your customer database. What's the total number of people
who dealt with you this year? How many is that per day, and how much did each
one spend? Once you have this information, you can work out how much customers
were paying you overall weekly, daily or even hourly. If it seems like a lot
more than you saw, you need to ask yourself if you spent too much of their money
on expenses. If it seems like hardly anything, then you're in trouble. Sorry to
be blunt, but either you need to consider raising your prices, or you're just
not doing enough marketing or working hard enough.
How Many Came Back?
Of course, a more important metric than the total number of customers you had
last year is how many of them came back more than once. Work out what percentage
of your business that was repeat business -- note that this means you count
someone twice if they bought from you three times overall, three times if they
bought from you four, and so on.
Whether in home business or not, a lost customer is one of your big losses! You
need to make sure that a large number of your customers are willing to do
business with you again, if you attend to the small individual demands of your
customer.
An easy way to do this is to simply take your number that says how many times a
customer has dealt with you, subtract one from all of them, and then add it up.
Once you know the raw amount of repeat business, you need to divide it by your
total number of customers and then multiply by 100. This gives you a percentage.
If your repeat business is lower than 20% or so of your total business, this is
cause for concern. Are you doing enough to stay in touch with your existing
customers?
What Did Customer Complaints Say?
Most of the customers really do not have complaints! They normally get stuck
upon some part of your product which they can not figure out. Your home business
must take of this aspect.
Now sit back and analyze what is the nature of your customer complaints
regarding your home business. These simple analysis will throw many insights
about your home business that you were not aware of till now.
I hope you kept hold of every customer complaint you got, even if you fixed it
at the time. You need to take a good look over what you did right, what you did
wrong and what you messed up. I know you dealt with things as they came up, but
looking back over everything can help you to see the big picture. It's all too
easy to miss quite simple patterns when you're in the thick of it day-to-day,
and looking at the complaints can reveal a trend that you weren't expecting.
What Have You Learned?
It can be useful to write yourself out a list of lessons at the end of the year,
even if it's things like 'quarter-page magazine ads are just as effective as
half-page ones' or 'make lunch later in the day so you eat it faster'. Your
accumulated knowledge is valuable: you've paid for it in cash and in sweat, so
make sure you don't forget it. See if you can come up with a list of positive
things to do next year to make your business even better!
So make sure that you review your home business regularly. You will reap in
benefits in the long run.
Liked this home business article? You will find many more informative home business tips through out this site.
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